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Subject: Update on China's New Retirement PolicyI am writing to inform you about the latest retirement policy in China and its potential impacts on our local company, as well as the possible next steps for our HR department.On January 1, 2025, China government issued the "Interim Measures for the Implementation of the Flexible Retirement System." This policy brings significant changes to the retirement age and procedures.Firstly, the statutory retirement age for male employees is gradually being postponed from the original 60 years old to 63 years old starting from 2025. For female employees, it is being postponed from 50 and 55 years old to 55 and 58 years old respectively. Additionally, the policy allows for flexible retirement options. For early retirement, employees can choose to retire voluntarily if they meet the minimum contribution period for receiving a monthly basic pension in the corresponding year of their chosen retirement time. The early retirement period cannot exceed 3 years from the statutory retirement age, and the retirement age cannot be lower than the original statutory retirement ages of 50, 55 for female employees and 60 for male employees. Employees need to submit a written application to the company at least 3 months before their chosen retirement date. For postponed retirement, it requires mutual agreement between the company and the employee. The employee must also meet the minimum contribution period for the corresponding statutory retirement age year. The postponement period cannot exceed 3 years from the statutory retirement age. The company and the employee need to confirm the postponed retirement time in writing one month in advance, and once determined, it cannot be extended further.This new policy will have several implications for our Chinese company. In terms of workforce planning, we need to consider the potential changes in the retirement timeline of our employees and make appropriate adjustments to ensure the smooth operation of the company. It may also affect our talent recruitment and retention strategies. For example, some employees may choose to postpone their retirement, which could provide us with more experienced manpower, but we also need to manage the associated costs and job rotations.In response to this policy, our HR department may take the following actions. We will first update our internal retirement management procedures to comply with the new regulations. This includes revising the application forms and processes for both early and postponed retirement. Then, we plan to organize training sessions for employees to help them understand the new policy and their options. We will also work closely with the management team to assess the potential impacts on different departments and develop corresponding strategies. Finally, we will maintain close communication with local social security agencies to ensure the accuracy of pension applications and compliance with all requirements.I will keep you updated on our progress in implementing this policy. If you have any questions or need further information, please feel free to contact me.如果你是薪酬绩效相关的HR，想与各家公司的HR们相互交流绩效管理心得，及时获取业界最新薪酬福利相关信息，欢迎扫描如下二维码报名加入HR专属交流群，相互学习交流分享经验。![]()
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