Manpower costs may go up with rise in retirement age in mainland China: Hong Kong firms
But firms also say they can adapt to the gradual age extension and benefit from a more stable workforce
Hong Kong businesses operating in mainland China have said that raising the retirement age may lead to higher manpower costs but firms can adapt to the gradual extension and benefit from a more stable workforce.
China’s top legislative body on Friday approved a plan to gradually lift the retirement age from 60 to 63 for male workers and from 55 to 58 for female white collar employees. The extension will be introduced gradually over 15 years.
All foreign-owned companies, including those based in Hong Kong, will be affected by the plan as long as they have employees on the mainland.
Danny Lau Tat-pong, honorary chairman of the Hong Kong Small and Medium Enterprises Association, said he expected the change to have little impact on his building materials firm as more than a tenth of the 150-strong workforce were already over 60.
“Our operation does not require very sharp minds. Not only is it cheaper to hire older workers, they will also earn an income and have a pastime. It is good for them and good for us,” said Lau, who operates production facilities based in Dongguan, Guangdong.
He said the retirement age would be extended by only a month every three months starting from 2025. Even firms in sectors that were more demanding, such as electronics manufacturers, would have time to adapt, Lau added.
