Lowering the Bar: Proposal to Reduce Social Insurance Threshold for China's Flexible Employment Personnel
As China prepares to convene the 2025 National Two Sessions, National People's Congress representative Li Dongsheng has proposed a suggestion to lower the social insurance threshold for flexible employment personnel. This proposal aims to reduce the burden of social insurance contributions, provide more comprehensive social security, and encourage more flexible employment personnel to participate in the social insurance system. With the rapid development of the platform economy and sharing economy, China's flexible employment group has continued to expand. Therefore, it is crucial to explore ways to incorporate more flexible employment personnel into the social security system, not only to protect their basic rights but also to improve the overall social security level in China.
3 March 2025
Li Dongsheng has been a vocal advocate for the rights of flexible employment personnel, having proposed suggestions to perfect the social security system for this group in 2022 and to cancel restrictions on work-related injury insurance for flexible employment personnel in 2023. This year, he continues to champion the cause by suggesting the lowering of the social insurance threshold, which would alleviate the financial burden on flexible employment personnel and increase their willingness to participate in the social insurance system. The proposal highlights several key issues, including the high personal contribution burden, the lack of flexibility in adjusting contribution rates, and the varying degrees of access to different types of insurance across different regions.
The number of flexible employment personnel is increasing steadily, but the current social security system poses significant barriers to their participation. Under the existing framework, flexible workers are only eligible to enroll in pension and medical insurance programs, while access to other essential insurance categories, such as work-related injury and unemployment insurance, is severely limited. Furthermore, the process of transferring and continuing social security benefits is cumbersome, depriving many flexible employees of the social protection they deserve. This disparity is particularly concerning given the growing scale of the flexible employment sector, with the nature of their work often leaving them vulnerable to uncertainties and risks that are mitigated for those in traditional employment arrangements.
The proposals put forth by Li Dongsheng include lowering the contribution rate for flexible employment personnel's social security funds, creating a mechanism for dynamic adjustments to social security contributions, and eliminating restrictions on certain insurance types for flexible employment personnel. These measures aim to alleviate the financial burden on flexible employment personnel, offering more comprehensive social security and thereby enhancing their living standards. By easing these restrictions and making the social security system more inclusive, it is possible to provide flexible employment personnel with the protections they need, ensuring they have financial support in old age, access to medical care when ill, assistance during periods of unemployment, and compensation for work-related injuries.
Looking ahead, if these suggestions were to be implemented, it is believed that they would bring greater welfare to flexible employment personnel, enabling them to enjoy more comprehensive social security. This move would also help solve the current social security problems faced by flexible employment personnel, promoting social stability and harmony. As the 2025 National Two Sessions approaches, Li Dongsheng's suggestion has sparked widespread discussion and debate, underscoring the need for urgent attention to the social security needs of China's growing flexible employment population.
