China has announced plans to gradually increase its statutory retirement age on Friday according to state news agency Xinhua. This move comes as the country grapples with a demographic crisis and an aging population.
The new policy will see the retirement age for male workers extended from the current 60 years to 63 years over a 15-year period beginning in 2025. For female workers, the retirement age will be raised from either 50 or 55 years to 55 and 58 years, depending on their job type. The transition to these new retirement ages is set to commence in 2025 and will be phased in gradually.
Additionally, starting in 2030, the minimum number of years required to qualify for basic pension contributions will increase from 15 to 20 years. This change will be implemented incrementally, adding six months to the required contribution period each year.
The new rules will also offer flexibility, allowing individuals to delay their retirement further if they reach an agreement with their employers.
These changes align with broader legislative efforts to address China’s demographic challenges. According to an International Labour Organisation (ILO) report from June 2020, a new law passed by China’s National Assembly in November 2019 will incrementally raise the retirement age for both men and women.
Specifically, the retirement age for men will rise from 60 to 62 years and 3 months by 2028, while for women it will increase from 55 to 60 years and 4 months, with full implementation anticipated by 2035.
This gradual approach reflects a broader strategy to manage the country’s aging population and pension system more effectively.
