Hong Kong companies operating in mainland China said the increase in the retirement age could lead to higher labour costs, but companies could adapt to the gradual increase in age and benefit from a more stable workforce.
China's top legislature on Friday passed a law gradually raising the retirement age from 60 to 63 for male workers and from 55 to 58 for female white-collar workers. The extension will be phased in over 15 years.
The plan will apply to all foreign companies, including those based in Hong Kong, 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 did not expect the changes to have a significant impact on his building materials firm because more than a tenth of its 150 employees are already over 60.
“Our work does not require a very sharp mind. Hiring older workers is not only cheaper, but they will also earn income and have fun. It is good for them and good for us,” said Lau, who runs manufacturing plants in Dongguan, Guangdong province.