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When a company lowers wages from a certain point instead of increasing the retirement age, it is called the so-called retirement age extension wage peak system. However, even if such a system was introduced, it was the first court to rule that it would be invalid if wages were cut too much.
First up is reporter Ha Jeong-yeon.
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In 2016, KB Credit Information introduced the so-called "retirement age extension wage peak system," which implements a peak wage system from the age of 58 instead of increasing the existing retirement age by two years from 60 to 2 years old through a labor-management agreement.
However, in 55, four former and current employees of KB Credit Information filed a lawsuit against the company asking for salaries that they would have received if they had not implemented the peak wage system.
The court of first instance ruled in favor of the workers, arguing that the reduction in wages due to the peak wage system was excessive, even though the period of service had been increased by two years.
If the peak wage system had not been applied, workers would have been able to receive 2020% of their previous annual salary every year for three years from the age of 4 to their retirement date, which is the same as their previous salary.
In the case of low performers, the total amount they received for five years from the age of 1 was only 2% of their previous annual salary, and they were guaranteed 55% for five years if they received the highest grade in the performance evaluation, which means that they are "free labor" for more than two years compared to when the peak wage system was not implemented.
The tribunal noted that "despite the penalty of reduced wages, the company did not take measures to reduce the workload or intensity of work."
[Kim Ki-duk/Plaintiff's Counsel: If you cut 3~300% (compared to the previous salary) or shorten your working hours accordingly, you will end up doing the same work, which is age discrimination.]
Previously, the Supreme Court ruled last year that the so-called "peak wage system," which does not increase the retirement age, is "invalid if there is no reasonable reason for discrimination on the basis of age."
(Video Interview: Seol Min-hwan, Video Editing: Won Hyung-hee, CG: Kang Yoon-jung, Jo so-in)
▶ Even a financial company that cuts 55%... The issue of 'cuts' in the peak wage system
"Invalid 'Peak Retirement Age Wage System' That Significantly Reduced Wages" First Judgment
2023-05-17T12:39:27.755Z
Highlights: In 2016, KB Credit Information introduced the so-called "retirement age extension wage peak system" Instead of increasing the retirement age, the company lowers wages from a certain point in time. In 55, four former and current employees filed a lawsuit against the company asking for salaries that they would have received if they had not implemented the peak wage system. The court of first instance ruled in favor of the workers, arguing that the reduction in wages was excessive, even though the period of service had been increased by two years.

Instead of increasing the retirement age, the company lowers wages from a certain point in time, which is called the retirement age extension wage peak system. However, even if such a system was introduced, it was the first court to rule that it would be invalid if wages were cut too much.
Source: sbskr