By The Straits Times | Created at 2026-10-20 08:56:31 | Updated at 2026-10-20 09:42:16
50 minutes ago
BEIJING - China’s efforts to boost contributions to its welfare system have drawn a backlash on social media, with users demanding better jobs and higher wages first, highlighting the challenges Beijing faces as it takes steps to restructure its export-reliant economy.
The plans aim to expand participation in social insurance schemes, including pensions and medical insurance, and improve employers’ compliance with contribution rules.
Beijing hopes broader and more reliable coverage will give households greater protection against retirement, healthcare and other risks, reducing precautionary saving and freeing them to spend more.
The online criticism comes after an official said authorities would use large datasets to identify those not making contributions and bring more people into the system, while the government plans to standardise fines for non-paying employers.
It is the latest in a series of social media flare-ups over gruelling work schedules, low pay and weak labour protections, highlighting a deteriorating job market as the economy struggles to generate consumer demand.
The hashtag “Reasons young people opt out of social insurance” topped the social topics trending list on China’s X-like Weibo on Oct 19, attracting at least 48 million views and 32,000 interactions.
On Oct 20, searches showed the message “this topic is not available in accordance with relevant laws, regulations and policies,” though related posts and comments remained visible.
The topic “new penalties for employers that underpay social insurance contributions” had drawn more than 21.5 million views and 12,000 interactions by the morning of Oct 20.
China’s human resources ministry and the Cyberspace Administration of China, which regulates online content, did not immediately respond to requests for comment.
Some users complained about low wages and high rates of roughly 10% of gross income for employees and 25% for employers for schemes covering pensions, health, work injury, unemployment and maternity support, while others worried the demographic downturn would hurt future pension payouts.
“Many young people opt out of social insurance not simply because they do not want to save for retirement, but because they face a dilemma between immediate financial pressures and uncertainty about retirement,” wrote one Weibo user.
From Nov 1, China will standardise penalties for employers that avoid making social security contributions for their staff, including fines of up to three times the amount of overdue payments, state broadcaster CCTV reported on Oct 17.
Earlier in October, Li Zhong, vice-minister of human resources and social security, said authorities should chase non-contributors “by every possible means and encourage them to enrol,” including through data analytics.
Economists say strengthening the social safety net is crucial for China to encourage household consumption in the long term.
The trade-off is that this initially increases the burden on businesses and workers, leaving them with less disposable income during the transition.
With household wealth hit by a prolonged property crisis and income growth sluggish amid producer price wars, that is a hard sell.
“If you help people find decent jobs that provide social insurance, the problem solves itself,” one user on China’s Instagram-like RedNote said, echoing others demanding wages rise first.
Another added: “I want to contribute, but my income only covers my living expenses. How am I supposed to pay?”
‘Make the robots pay’
A 2025 survey by human resources firm Zhonghe Group found only 34.1% of participating businesses were “fully compliant” with social insurance payments.
“I’ll give you my boss’s phone number. Feel free to contact him, because to be honest I’d like to enrol too,” read one comment on an article about Li’s statements.
Gig workers, a cohort of more than 300 million people for whom the contributions are not mandatory, usually choose not to pay into all schemes.
“Without a formal employer, paying the full amount myself is a heavy burden,” read another comment.
Many young graduates also complain that rapid AI adoption and industrial automation curb job creation.
“Make the robots pay,” said one user. REUTERS
