China's legislature voted on 13 September 2024 to raise China's statutory retirement age gradually, the first adjustment to the arrangement since the 1950s. The decision was adopted at the 11th session of the Standing Committee of the 14th National People's Congress, according to the National People's Congress.
The new arrangements take effect from 2025 and are phased in over 15 years. The decision was formulated, the NPC said, on the basis of an assessment of life expectancy, health conditions, population structure, education levels and workforce supply.
What changes
- Men: the statutory retirement age rises from 60 to 63.
- Women cadres: from 55 to 58.
- Women blue-collar workers: from 50 to 55.
- Pension contributions: from 2030, the minimum years of basic pension contributions needed to receive monthly benefits rise from 15 to 20 years, increasing by six months each year.
The reform includes flexibility in both directions. Workers who have reached the minimum contribution period may retire voluntarily up to three years early, but not earlier than the previous statutory age. Individuals may also postpone retirement by up to three years by agreement with their employer. The decision also covers measures on pension incentives, an employment-first strategy, the rights of workers who have passed statutory retirement age, welfare for unemployed older workers and earlier retirement for those in special professions. The International Social Security Association also recorded the change in the ages for men, women cadres and women blue-collar workers.
What it means for employers
For employers in China, including foreign-invested enterprises, the change in the China retirement age affects workforce planning, the timing of retirement-related terminations, and the treatment of employees who continue working by agreement beyond statutory age. Employment contracts, internal retirement policies and benefit plans tied to the old ages will need review, as will social insurance arrangements for staff approaching retirement during the 15-year transition. Multinational groups with pension or long-service commitments in China should also check how their schemes interact with the longer minimum contribution period from 2030.
