Hyundai Engineering and Construction, South Korea’s No. 1 builder, said Monday it will extend the retirement age of its workers to 60 and adopt a peak wage system a year before it becomes mandatory for large businesses to take such steps.

“The move marks a first in the construction sector and was reached through detailed consultation between labor and management,” a corporate official said. At present, the retirement age for the company, like most other firms, is 58.

The National Assembly passed a revised Employment Promotion for the Aged Act last year, requiring private companies with more than 300 workers to raise the retirement age from 2016 onwards. In conjunction with the adjustment, the government advised the adoption of a wage peak system that can reduce the burden on companies and make it possible to introduce job-sharing schemes.

The Hyundai official said that under the agreement, a worker’s wage will peak at 58, with the total to shrink 10 percent each year until he or she leaves the company. (Yonhap)