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China’s New Mandatory Social Security Insurance Contribution Rule Sparks Concern

An Internet article stated that China’s Supreme People’s Court issued a judicial interpretation on August 1 stating that beginning September 1, workers cannot legally waive social security insurance, even if they gave consent to their company; rather, they can sue employers who fail to pay.

The author pointed out that economically, mandatory contributions reduce workers’ take-home pay, hitting small businesses hardest and possibly pushing firms to switch their full-time employees to contractors (then they don’t have to pay for their benefits and social obligations). The article also criticizes rigid rules like a 20-year pension contribution and opaque fund management, which create uncertainty about future benefits.

The author concludes: it’s not that people need social security insurance – but rather, it is that the social security funds need us to contribute to remain solvent.

Source: Utopia, August 6, 2025
https://www.wyzxwk.com/Article/shehui/2025/08/511706.html