Articles
According to the schedule of China’s legislative institutions, no significant changes to employment law are scheduled in 2025. One notable new statute is the Interim Measures for Illness and Disability Benefits Under the Basic Endowment Insurance for Enterprise (the “Interim Measures”), which will take effect on Jan. 1, 2025.
Under the Interim Measures, enterprise employees having participated in the basic pension insurance—who have been assessed as completely disabled due to illness or non-work-related injuries—may apply for the illness and disability allowance on a monthly basis before reaching the statutory retirement age. During the period of receiving illness and disability allowance, the employee shall no longer be required to pay basic pension insurance contributions.
China’s retirement age reform will have a significant impact on both employers and employees. For example, it will increase the cost of HR and possibly decrease employee turnover. Employers should take steps to prepare, such as updating documents to reflect each employee’s applicable statutory retirement age.
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