China implements gradual retirement age increase
- Josephine Tan
- Topics: China, Compliance, Employment Law, Home Page - News, News
China has embarked on a gradual increase of the statutory retirement age, prioritising the protection of elderly employees’ rights and respecting their individual preferences. This move, effective 1 January 2025, follows a decision by the National People’s Congress in September to raise the retirement age for men to 63 and for women to either 55 or 58, depending on their occupation.
A joint interim guideline issued by relevant ministries outlined the operational procedures, allowing employees to choose their retirement age flexibly. Individuals aged 60 (men) and 55 (women) can now request to extend their retirement by one month every four months. For women aged 50, this extension period is every two months. This phased approach will gradually raise the retirement age over 15 years.
The guideline emphasises voluntary retirement decisions, prohibiting employers from coercing employees. Employees can choose to retire up to three years earlier than the new statutory age, subject to minimum pension contribution requirements. However, early retirement before the previous statutory age (60 for men, 50 or 55 for women) is not permitted.
Employers are obligated to maintain the same rights and benefits for employees who postpone retirement, including social insurance and labour relations.
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Experts have lauded the guideline for its clarity and emphasis on individual rights. Zhao Zhong, Dean of the School of Labour and Human Resources at Renmin University of China, highlighted the detailed rules and measures that address concerns about labour relations and working rights. Li Chang’an, Professor at the University of International Business and Economics, emphasised the “voluntary and flexible” principles of the policy, aligning with the evolving socioeconomic landscape and demographic changes.
China’s ageing population underscores the urgency of these reforms. Figures from the Ministry of Civil Affairs revealed that individuals aged 60 and above accounted for over one-fifth of the nation’s population in 2023, reported China Daily.
