China has decided to raise the retirement age by up to five years as the country battles an economic slump and the growing pressure from an ageing population.
The retirement age for men will rise from 60 to 63 and for female office workers from 55 to 58 as a result of the decision by the Standing Committee of the National People’s Congress, the country’s top legislative body.
The biggest increase affects female blue-collar workers, who could previously retire aged 50 but will now have to wait until they reach the age of 55.
The old retirement ages were well below those in most developed economies. In Japan, people can begin receiving pensions at 65, while in South Korea, the pension age is 63.
All foreign-funded companies, as well as companies based in Hong Kong and Taiwan, will be affected by the plan as long as they have employees on the mainland.