Looking up...
A wage system where salary and bonuses are determined primarily by an employee's length of service and age, rather than job performance or skills.
年功序列賃金では、勤続年数が長い従業員ほど給与が高くなる傾向がある。
In the seniority-based wage system, employees with longer tenure tend to receive higher salaries.
This system was historically dominant in Japanese corporate culture, particularly in large companies, but has been declining in favor of performance-based pay systems in recent decades.
This system reflects Japan's historical emphasis on group harmony and long-term commitment. Companies provided job security and gradual wage increases in exchange for loyalty. However, economic stagnation in the 1990s ('Lost Decades') forced many firms to adopt more flexible wage structures.
Use this term when discussing historical or traditional Japanese corporate practices. Avoid assuming it's still the dominant system today, as most companies have shifted toward performance-based evaluations.
The term combines four kanji: 年功 (nenkō, 'years of service + merit'), 序列 (joretsu, 'order/ranking'), and 賃金 (chingin, 'wages'). The concept emerged in post-WWII Japan as part of corporate welfare systems and was influenced by Confucian values emphasizing loyalty and hierarchy.
While still referenced in discussions about Japanese labor practices, the system has significantly diminished since the 1990s due to globalization and corporate restructuring. Younger generations often view it as outdated. The term is frequently contrasted with '成果主義' (performance-based pay) in modern debates.