VATT Director General: Cut salaries for pre-retirement employees

The Director General of the Government Institute for Economic Research (VATT) has proposed a salary reduction for workers approaching retirement. Director General Juhana Vartiainen made his remarks in an interview with the newspaper Iisalmen Sanomat.

Image: Jari Pelkonen / Yle

Vartiainen said that it should be possible to reduce the wages of mature employees to reduction to correspond with their falling productivity levels.

“From an employer’s point of view, an employee becomes less relevant even before retirement because the employer knows that this person doesn’t have to exert as much effort as others,” Vartiainen noted.

According to the VATT Director General, age discrimination could be tackled by increasing the age of retirement. This, he believes, would encourage aged employees to maintain their professional skills longer.

Vartiainen argued that employers would also be more likely to hire in mature workers if the retirement age were higher.