The government agreed Tuesday on a civil service reform framework that includes a merit-based salary system and rules governing the employment of retired civil servants in the private sector.

The Cabinet approved the framework in the morning and will submit a bill on basic principles outlining the reform measures to the Diet during the session scheduled to start in January, government officials said.

The government plans to submit a substantial amendment to the National Civil Service Law to the Diet in fiscal 2003 to start the new system in fiscal 2006, submitting related legislation in fiscal 2005, the officials said.

The planned amendment of the National Civil Service Law will be the first major revision since the law was introduced in 1948.

A new merit-based salary system will replace the current seniority-based wage system when the new law comes in effect.

Public sector employees moving to the private sector will also be covered by the new rules. Former government officials will be barred from mediating between private companies and the government organizations they used to work for. Violators will face disciplinary measures.

Basic workers' rights, including the right to strike, will be maintained under the new framework.

Salaries will be based on annual recommendations by the National Personnel Authority, but the framework curtails the authority's jurisdiction over recruiting exams and human resource development.

The Cabinet will also have more say in making policy proposals and Cabinet members will be allowed to approve in advance the appointments of directors or higher ranking government officials wanting to move to the private sector.