Takamatsu City, located on Shikoku Island, has come under scrutiny for underpaying severance benefits to its municipal employees over several years. The discrepancy, which impacts 134 individuals who retired from public schools—including elementary and junior high schools as well as kindergartens—has resulted from the city's miscalculation of severance payments.
From fiscal years 2017 to 2023, the city failed to properly apply its own regulations surrounding severance pay, causing the affected employees to receive significantly less than they were entitled to. City officials acknowledged the oversight, stating they did not factor the employees' peak monthly salaries, which is mandated by internal regulations. Instead, severance pay was calculated only based on the salary at the time of retirement, misleading those expecting the rightful benefits. "The city has realized the mistake during the review of the regulations and will make the necessary payments," commented a Takamatsu City official, reported by local news agencies.
According to the city's reports, the total shortfall amounts to approximately 48.5 million yen, which includes both the difference owed and late fees. Takamatsu City has committed to fulfilling these payments and ensuring employees receive the overdue amounts as part of their severance packages.
The miscalculation was only discovered during the city's routine review of its regulations pertaining to severance calculations. This review brought to light the discrepancies and the need for stricter adherence to the city's processes. Local governmental bodies have been reminded of the importance of following regulations accurately to avoid similar mistakes now and in the future.
To prevent recurrence, the city plans to implement rigorous checks and balances, ensuring multiple personnel are involved in the verification process of such calculations moving forward. The focus will be on ensuring transparency and compliance with regulations meant to protect employees’ rights, particularly concerning their financial entitlements after retirement.
This situation has highlighted the challenges faced by local governments in maintaining accurate payroll systems and ensuring timely compliance with their own policies. It is imperative for municipal administrations to invest resources and training to avoid pitfalls related to financial mismanagement.
Many affected employees expressed concern over the long-term impact of this underpayment. Some retirees noted the difficulties the shortfall has presented to their post-retirement financial planning, highlighting how important correct severance calculations are for sustaining their livelihoods after years of service.
Takamatsu City’s experience serves as both cautionary and educative, shedding light on the necessity of advocating for the proper application of pay regulations. It stands as a reminder for all governmental and public service bodies to uphold their commitments to their employees.
Moving forward, officials will need to work diligently to restore trust among employees who rely on their benefits to secure their future. The hope is to achieve optimal accuracy and fairness, ensuring such errors do not emerge again, safeguarding the well-being of those who dedicated their careers to public service.