What are the statutory pension benefits in China?

In China, statutory pension benefits are available to employees who have contributed to pension funds for at least 15 years upon reaching the qualifying retirement age. The qualifying retirement ages are currently 60 years for men, 55 years for white-collar female workers, and 50 years for women working in factories.

Upcoming changes in the retirement age policy, effective from January 1, 2025, will see the retirement age increase gradually:

• For male employees, it will extend from 60 to 63 years.
• For female employees working in factories, it will extend from 50 to 55 years.
• For white-collar female workers, it will extend from 55 to 58 years.

The statutory social insurance pension system in China requires contributions to two accounts:

• Basic Pension (Pay-as-you-go Pooled Account): Employers contribute to this account, with the contribution rate depending on the local jurisdiction.
• Mandatory Individual Accounts: Employees typically contribute about 8% of their salary; however, this rate can vary by region.

Both employer and employee pension contributions are subject to city-specific caps. Any contribution percentage over these limits will revert to the city-specific cap. Contribution bases undergo annual review, with adjustments potentially occurring in January or July. By January 1, 2030, the required minimum monthly contribution period to receive a basic pension will gradually increase from 15 to 20 years, with an increase of six months each year.