Beyond Retirement: What Employers Need to Know About China’s New Rules for Over-Age Employees

On May 10, 2025, five Chinese authorities—including the Ministry of Human Resources and Social Security (MOHRSS)—jointly issued the Interim Measures on the Protection of Basic Rights and Interests of Over-Age Workers (the “Measures”), which will take effect on July 1, 2026.

The Measures represent a significant regulatory development in the context of China’s gradual retirement age reform and aging workforce, providing a clearer legal framework for engaging individuals who have exceeded the statutory retirement age.

The current retirement ages in China are as follows:

• Men: Gradually increases from 60 to 63 years.
• Female Cadres (White-Collar/Management): Gradually increases from 55 to 58 years.
• Female Workers (Blue-Collar): Gradually increases from 50 to 55 years.

Historically, individuals working beyond retirement age have generally not been treated as employees under People’s Republic of China (PRC) law. Instead, their relationship with employers has typically been characterized as a civil relationship governed by the PRC Civil Code, with limited statutory protections. The Measures mark a meaningful shift toward formalizing this long-standing yet legally ambiguous segment of the workforce.

Mandatory Written Agreements and Core Terms

The Measures require employers to enter into written engagement agreements with over-age workers, marking a departure from prior informal practices. These agreements must specify key terms, including:

• Scope of work, location, and duration
• Working hours and leave arrangements
• Compensation structure and payment terms
• Social insurance arrangements
• Workplace safety and occupational hazard protection

Guaranteed Minimum Rights

The Measures establish a set of non-negotiable minimum rights that are similar to those applicable to regular employees, including:

• Pay must not fall below local minimum wage and must be paid in full, in cash, at least monthly;
• Employers must provide safe and suitable roles based on the worker’s health and capabilities;
• Employers are expected to limit overtime, with statutory restrictions applying if overtime is required; overtime payment is required; and 
• Mandatory training and compliance with occupational health standards.

These provisions signal that, notwithstanding their status, over-age workers are entitled to a minimum level of labor protection akin to standard employees.

Work-related Injury Insurance Becomes Mandatory

One of the most impactful provisions is the requirement for employers to enroll over-age workers in work-related injury insurance. Previously, employers were not required to provide work-related injury insurance (i.e., workers’ compensation) for those over-age workers. 

Now, under the Measures, employers must contribute to work injury insurance for them, and over-age workers are exempt from individual contributions. Work-related injuries and occupational diseases will be handled under the formal work injury framework.

Flexible Approach to Pension and Medical Insurance

The Measures take a flexible stance on pension and medical insurance participation. Workers already receiving retirement benefits continue to do so without interruption, and those not yet enrolled may contribute individually. Employers may, by mutual agreement, participate in pension and medical insurance contributions for those workers. 

Termination and Dispute Resolution

The Measures provide relatively simplified termination mechanics compared to standard labor contracts. In practice, termination without statutory cause or notice may be achievable where contractually agreed.

In the past, all disputes regarding over-age workers were governed by the PRC Civil Code and did not fall under the labor disputes category. Under the new measures, disputes regarding wages, safety, and injury insurance fall within labor arbitration mechanisms. Other disputes may still proceed directly through civil litigation.

What Employers Can Do

The Measures mark a meaningful shift from regulatory ambiguity toward structured protection of over-age workers. They impose minimum standards that bring these arrangements closer to regulated employment relationships.

Employers operating in China should begin reviewing their current practices and prepare to implement compliant engagement frameworks before the July 1, 2026 effective date, including reviewing existing arrangements with retirees and over-age workers, budgeting for mandatory work injury insurance contributions, and aligning pay and working conditions with statutory minimum standards.