A growing number of credit card companies are adopting the so-called wage peak system this year in line with the government's push as part of broader labor reforms, sources said Wednesday.

Samsung Card, Hyundai Card and Lotte Card implemented the new wage system starting this year following the suit of KB Kookmin Card Co., which last year became the first credit card firm in South Korea to adopt the system.

The public sector and big businesses with 300 or more employees will extend the retirement age to 60 or above starting in 2016 and others from 2017, according to law.

The peak wage system guarantees employees' job security until their retirement age set by the company in exchange for reduced salaries, with the government expecting the money saved through the wage arrangement to be used to hire new employees.

Samsung and Hyundai employees will see their paychecks cut by 10 percent every year after they reach 56 years old. As for Lotte Card, workers who turn 57 will receive two years of salary for working their remaining three years, according to their officials. 

While KEB Hana Card is planning to adopt the system within this year, other firms, including Shinhan Card, Woori Card and BC Card, are reviewing the implementation of the novel wage structure, according to the sources. (Yonhap)