According to the 2014 Social Insurance Law, which stipulates a gradual increase in the required social insurance contribution period to receive the maximum pension, starting from January 1, 2018, male workers must have contributed for 35 years and female workers for 30 years to receive the maximum pension of 75%, instead of 30 years and 25 years respectively as currently required.
From January 1, 2018, female workers retiring after contributing to social insurance for 15 years will receive a pension equal to 45% of their average monthly salary on which social insurance contributions were based. From the 16th year onwards, the social insurance benefit increases by an additional 2%; those who contribute for 30 years will receive a maximum pension of 75% instead of the current 25 years.
For male workers, also from January 1, 2018, to receive the 45% pension, they must have contributed to social insurance for 16 years, and by 2022 they must have contributed for 20 years to receive the 45% pension. To receive the maximum pension of 75%, male workers must have contributed to insurance for 35 years, instead of 30 years as currently required.
Male workers retiring in 2018 who have contributed to social insurance for 31 years are entitled to a maximum pension of 75% of their average monthly salary on which social insurance contributions were based. If male workers retire from 2019 onwards, they must contribute to social insurance for 32 to 35 years to receive 75%.
Regarding this issue, many workers have recently undergone medical examinations to retire before January 1, 2018, to avoid being affected by the new law. However, pension benefits depend on many factors: the benefit rate; the average salary used for social insurance contributions; the time of pension entitlement; and the duration of pension entitlement. Therefore, not everyone who retires before 2018 will benefit more than those who retire from 2018 onwards.
