SEOUL, May 12 (Korea Bizwire) – SK Telecom decided to raise the retirement age of its employees to 60 from current 58 and introduce a “wage peak system.” SK Telecom recently signed a collective agreement with its trade union on various issues like the extension of the retirement age, wage peak scheme, and expansion of ordinary wage criteria.
Last year, the National Assembly revised the Law on Prohibition of Age Discrimination in Employment and Aged Employment Promotion which extended the retirement age to 60 in businesses with more 300 employees and public agencies from 2016.
Under this situation, SK Telecom decided to extend the retirement age two years earlier while introducing the wage peak system reducing 10 percent of wages for 59 year-old employees from this year.
Along with this, SK Telecom decided to expand its ordinary wage criteria to regular incentives. But it froze the base pay considering the current difficult business environment.
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