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 On 13 September 2024, the Standing Committee of the National People's Congress (NPCSC) adopted and issued the Decision on the Implementation of a Gradual Delay of the Statutory Retirement Age (hereinafter referred to as the ‘Decision on the Delay of the Retirement Age’), which took effect on 1 January 2025, marking the imminent formal implementation of China's delayed retirement policy. The Decision on Delayed Retirement, in accordance with the principles of ‘small-step adjustment, flexible implementation, classification and promotion, and taking into account the overall situation’, will gradually push forward the reform of delayed retirement and gradually delay the statutory retirement age, so as to cope with the challenges brought about by the ageing of the population.

I. Background of the delayed retirement policy

At present, the statutory retirement age in China is 60 for male workers and 55 or 50 for female workers. In recent years, the trend of population aging in China has become more and more significant.2024 On 30 August 2024, the Ministry of Civil Affairs released the ‘Statistical Bulletin on the Development of Civil Affairs in 2023’, which shows that as of the end of 2023, there were 296,970,000 elderly people aged 60 years old and above, accounting for 21.1% of the total population, of which 216,760,000 were aged 65 years old and above, accounting for 15.4% of the total population. By international standards, China has entered a moderately ageing society. Life expectancy per capita has risen from around 40 years at the beginning of the founding of New China to 78.6 years at present.

While the number of older persons has risen sharply and life expectancy has lengthened, the number of new births in China has declined and the number of persons of working age has continued to fall. Moreover, the average number of years of schooling for the new labour force has risen from 8 to 14, and the age of entry into the workforce has generally shifted back from that of the early years of the founding of the People's Republic of China.

The increase in the number of elderly people and the decline in the working-age population have led to increasing pressure on pension payments, which together constitute the realistic background for the delayed retirement policy.

Second, the main content of the delayed retirement policy

1. Adjustment of the statutory retirement age

The Decision on Delayed Retirement approved the Measures of the State Council on Gradual Delay of the Statutory Retirement Age (hereinafter referred to as the ‘Measures on Delayed Retirement’), which clearly defined the specific objectives of delayed retirement: the statutory retirement age for male employees was extended to 63 years old (formerly 60 years old); the statutory retirement age for female employees in managerial and technical posts was extended to 58 years old ( The statutory retirement age for male workers was extended to 63 years (formerly 60 years); for female workers in managerial and technical positions, it was extended to 58 years (formerly 55 years); and for female workers in non-managerial and technical positions, it was extended to 55 years (formerly 50 years). This adjustment will be completed gradually and smoothly over a period of 15 years.

2. Flexible Retirement Mechanism

The flexible retirement mechanism is an important element of the Extended Retirement Measures. The flexible retirement mechanism refers to the following: on the premise that the employee has reached the minimum number of years of contribution, the employee may choose to retire early in a flexible manner according to his or her personal wishes, but the extent of advancement shall not exceed three years and shall not be lower than the original statutory retirement age; employees who have reached the statutory retirement age may delay their retirement by consensus with their units, and the extent of advancement shall not exceed three years. This mechanism, which requires that it must not be against the will of the employee, both increases the flexibility of the retirement age and takes into account the employee's right to choose. (For more details, see article 3 of the Measures for Delayed Retirement.)

3. Increase in the minimum number of years of contributions

Article 2 of the Deferred Retirement Measures stipulates that, starting from 1 January 2030, the minimum number of years of contributions for an employee to receive a monthly basic pension will be gradually increased from the current 15 years to 20 years. This means that in the future, employees will need to pay contributions for a longer period of time and in larger amounts before they can enjoy pension benefits.

In addition, the Delayed Retirement Measures also contain provisions on the pension insurance incentive mechanism, the development of employment positions for the older age group, the prevention and management of employment discrimination, and the labour protection of over-age employed persons.

Third, the significance and impact of the delayed retirement policy

First of all, the delayed retirement policy is an important response in the face of the reality of China's rapid population aging, which helps to alleviate the pressure of China's pension payments, and make full use of human resources by extending the labour life of employees. By promoting the reform in a gradual and flexible manner, it takes into account the affordability of the society as well as the interests and needs of different groups. This relatively flexible approach to reform is conducive to reducing resistance to reform and is more readily accepted by the public.

Secondly, the Extended Retirement Measures have made a number of provisions to protect the rights and interests of workers. For example: flexible retirement; protection of the basic rights and interests of workers over the legal retirement age, such as labour remuneration, rest and leave, labour safety and health, and protection against work-related injuries; encouragement of long-payment, multi-payment and late retirement; clarification of unemployment insurance and pension insurance-related policies for older unemployed people; support for young people's employment and entrepreneurship; improvement of the system of employment assistance for people in difficulty; and prevention of discrimination in employment, and so on.

Of course, the delayed retirement policy will also bring a series of challenges, such as:

1. A large number of older persons continue to work in the workplace, which to a certain extent will inevitably increase the employment pressure on young people. To this end, a series of measures are needed to alleviate the problem. For example, strengthening vocational skills training for young people and improving their competitiveness in employment; encouraging enterprises to take on young people for employment and provide more job opportunities; and improving the employment assistance system to help young people in difficulty to find employment.

2. There are differences in the willingness of different workers to delay retirement, and there are also differences in their physical qualities. In implementing the policy of delayed retirement, publicity should be strengthened so that workers can better accept the relevant policy. Workers' wishes and realities should also be fully respected, and as many options as possible should be provided.

3. The delayed retirement policy has set up a long transition period and the changes are more specific, placing higher demands on the human resources management of employers. Employers need to carefully study and learn about the policy, strictly comply with labour laws and regulations, and must treat key issues such as the establishment and termination of labour relations, retirement, social security contributions, and discrimination in employment more carefully, in order to avoid losses due to the policy change.

In conclusion, the implementation of the delayed retirement policy is an important step in China's response to the challenges of population ageing, and is closely related to the people's immediate interests and social stability. How to achieve a stable transition, how to gain the recognition and support of workers in the course of implementation, and how to practically solve social problems through policy reform can by no means be accomplished by a single decision or a single approach, but also requires the support and co-operation of various departments and the people, and the convergence of a series of complementary measures. Whether or not the relevant measures can be implemented and whether or not the problems can be solved one by one needs to be tested over time, and it is hoped that the original intention of the policy of deferring retirement can be realised, thereby smoothly promoting social and economic development.

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