Pension and Retirement Benefits in China

Details on statutory and supplemental offerings.

Updated on December 20th, 2022

What are the statutory pension benefits? What do they cover?

Supported employees with at least 15 years of contributions are entitled to receive a monthly pension (made up of both a common fund and an individual fund) when they reach the qualifying retirement age, which is 60 for men, 55 for women, and 50 for women in the public sector. 

The statutory social insurance pension system in China consists of two accounts:

  1. Basic pension (pay-as-you-go pooled account). Employers contribute to the basic pension only, and contributions vary between 13% and 16% according to local jurisdiction.
  2. Mandatory individual accounts. Employees contribute to their individual accounts, and rates vary by region, typically about 8% of salary.

Contributions for both the employer and the supported employee will cap at the minimum or maximum amount, which varies by city. If 16% or 8% of the contribution is higher than the maximum contribution, we will follow the cap amount for the cities. The minimum and maximum base rates are reviewed by the government in July each year.

What pension benefits do most employers offer?

Supplemental pension benefits are not commonly offered in China. 

Can an employer make direct contributions to an employee’s private pension? 

An employer is required to make direct contributions to an employee’s statutory pension. Private pensions are not commonly offered in China.