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Global

China: New Protections for Employees Working Beyond Retirement Age

By - - Employment Law, Equality, Diversity and Equal Rights, Pensions & Benefits, Workplace Culture

China has introduced further reforms to its retirement and employment framework as part of a response to the challenge of an ageing workforce.

Building on earlier changes to retirement age and flexible retirement arrangements introduced in 2025, new rules, effective from July 1st 2026, strengthen legal protections for employees who continue working beyond retirement age.

These changes increase the need for employers to review how they manage older workers, particularly where employment continues after statutory retirement age has passed.

Outline of the 2025 Reforms

Gradual Increase in Retirement Age

Since January 1st 2025, China has been phasing in a gradual increase in the statutory retirement age over a 15‑year period. The retirement age will rise from 60 to 63 for male employees, from 55 to 58 for female employees in white‑collar roles, and from 50 to 55 for female employees in blue‑collar roles. The changes are being introduced progressively based on date of birth, meaning different groups of employees will reach retirement at different ages. Younger employees will ultimately be subject to the higher retirement ages in full.

More Flexible Retirement Options

Alongside the increase in retirement age, rules around early and delayed retirement were made more flexible. Employees who meet the minimum pension contribution requirements can choose to retire up to three years early, provided they meet the relevant eligibility thresholds. Employers do not need to approve this decision, although employees must give advance notice.

Employees can also agree with their employer to delay retirement by up to three years. Unlike early retirement, this requires mutual agreement and advance notice. During any agreed extension period, employees remain fully protected under labour and social insurance laws.

New Protections for Post‑retirement Employees

From July 1st 2026, new rules apply to employees who continue working after reaching retirement age or who are re‑employed following retirement. These rules require employers to formalise the relationship and put basic protections in place. In practice, this means employers must enter into a written agreement, clearly set out pay arrangements (which must meet minimum wage requirements), comply with working time limits, ensure appropriate health and safety measures, and provide work injury insurance cover.

Employees who are already receiving pension and medical benefits can continue to receive those benefits while working. Where employees have not yet met the required contribution thresholds, they may continue contributing themselves or, if agreed, through the employer.

Enforcement and Employee Rights

The new framework strengthens enforcement and employee protections. Trade unions are given a clearer role in supervising compliance and supporting employees in disputes. Employees may raise complaints with labour authorities or bring claims relating to pay, working time, safety or work‑related injury. Disputes can be taken to mediation, arbitration and, where necessary, the courts.

Practical Implications for Employers

The changes require employers to take a more structured approach to managing employees approaching or beyond retirement age. In practice, employers should:

  • review existing arrangements for employees working beyond retirement age;
  • ensure appropriate written agreements are in place and compliant with the new rules;
  • clearly define pay, working time and safety arrangements;
  • ensure work injury insurance coverage is maintained; and
  • keep clear records of retirement discussions and decisions.

Employers should also be clear on the type of arrangement being used. A delayed retirement agreement keeps the full employment framework in place, including statutory termination rules. By contrast, a post‑retirement service arrangement offers greater flexibility but requires careful contractual drafting.

The new framework does not prevent employers from deciding whether to retain employees beyond retirement age. However, where employment continues, it must now be managed in a more structured and compliant way.

The focus is on clarity, documentation and appropriate protections, with increased scrutiny on how older workers are engaged and treated in practice.

This is a high-level general update only. Legal advice should be obtained on specific circumstances.
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