The “Measures of the State Council on the Gradual Raising of the Statutory Retirement Age” will be implemented from January 1, 2025
On September 13th, 2024, the State Council issued the “Measures of the State Council on the Gradual Raising of the Statutory Retirement Age” (hereinafter referred to as the “Measures”), which will be implemented from January 1, 2025. The main content is as follows:
- Rules for the raising of the statutory retirement age
Article 1 stipulates that, “As from January 1, 2025, the statutory retirement ages for male employees and female employees for whom the original statutory retirement age is 55 years old shall be delayed by one month every four months to the age of 63 and the age of 58 respectively; and for female employees for whom original statutory retirement age is 50 years old, the statutory retirement age shall be delayed by one month every two months to the age of 55 gradually…….”
Article 8 stipulates that those who meet the conditions for special occupations can apply for early retirement, but there is no specific age limit. It is uncertain whether the original rules regarding the early retirement would be applied, or there will be new rules regarding early retirement, especially related to the age limit.
- Extension of the minimum payment period for monthly basic pension payments
Article 2 of stipulates that, “As from January 1, 2030, the minimum number of years of contribution for employees to receive basic pension on a monthly basis shall be gradually increased from 15 years to 20 years with an increase of six months each year. Employees who have reached the statutory retirement age but have not completed the minimum number of years of contribution may receive basic pension on a monthly basis after reaching the minimum number of years of contribution through extension of the contribution period or one-off contribution in accordance with provisions.”
- Rules related to flexible retirement
Article 3 stipulates the provisions for flexible early retirement and flexible postponed retirement, as follows:
(1) Employees who have reached the minimum number of years of contribution may voluntarily opt for flexible early retirement, provided that the period for early retirement does not exceed three years, and the retirement age shall not be lower than the original statutory retirement age of 50 years old and 55 years old for female employees and 60 years old for male employees.
(2) Employees who have reached the statutory retirement age may postpone their retirement under flexibility for not more than three years upon negotiation and agreement with their employers.
It is worth noting that the Ministry of Human Resources and Social Security mentioned in a press conference held by the State Council Information Office on September 24th that specific measures for flexible retirement will be formulated to further clarify the rules regarding flexible retirement.
In addition, the Measures also provide principled provisions on the impact of raising retirement age on individuals receiving unemployment insurance benefits, as well as the calculation and distribution base of basic pension.