TOKYO, March 31 (Xinhua) -- Japan's parliament on Tuesday enacted legislation encouraging companies to allow employees to continue to work until the age of 70.
The move is aimed at addressing part of the country's growing demographic crisis that sees the population rapidly aging and simultaneously shrinking amid a falling birthrate.
This has resulted in an increasingly hollowed-out workforce and the severest labor crunch since the early 1990s, as the government is grappling to deal with ballooning social welfare costs with the rising numbers of Japan's graying population.
Under the new legislation, which will be implemented from April next year, companies, while not being legally bound to do so, will be more inclined to raise or scrap the retirement age, or simply allow their employees to work beyond any current age limitations.
It also offers companies the option to provide work to retirees as outsourced contractors or freelancers, and the option for businesses to offer seniors beyond the current retirement age work related to firms' philanthropic initiatives.
At present, Japanese companies are duty-bound to let their employees work until 65, but looking ahead the Japanese government is planning to make it obligatory for businesses to allow employees to work until they are 70, government officials said.
