China's New Retirement Age: Implications For Businesses

On 13 September 2024, China's legislature passed the Decision on the Implementation of Gradual Delayed Retirement Age ("Decision"). This is the first time China has raised the retirement age since 1978.

In addition, the Measures for the Gradual Delayed Retirement Age ("Measures") were issued to outline changes to the statutory retirement age, pension insurance, and voluntary retirement schemes. Both the Decision and the Measures will take effect on 1 January 2025.

1. What Changed?

a) The Statutory Retirement Age Will Rise Gradually over the Next 15 Years

Absent any other legislative acts, beginning from 1 January 2025, the statutory retirement age for male employees will rise by one month every four months, gradually reaching 63 years. This will also apply to female employees whose original statutory retirement age was 55 (generally applies to white-collar employees), with their retirement age gradually rising to 58 years. For female employees whose original