Several individuals in China told The Epoch Times they could no longer afford payments or were considering stopping contributions. They spoke on condition of anonymity out of fear of reprisal.
Separately, a nationwide tax penalty framework scheduled to take effect Nov. 1 allows fines of up to three times the amount of overdue social security contributions owed by employers. Penalties will vary according to the amount unpaid and the proportion of required contributions in arrears.
Raising Contributions
A restaurant owner in Foshan, Guangdong Province, told The Epoch Times her monthly social security payment rose from 1,528 yuan ($228) to 1,707 yuan ($255) in October. She was also asked to make up the difference for January through September.
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“I earn very little, just over 4,000 yuan (598) a month,” she said.
The restaurant owner said she is considering closing her restaurant next year.
A worker in Shenzhen, Guangdong Province, who has paid social security for 11 years, told The Epoch Times that social security is becoming increasingly unaffordable in her city.
“It goes up every year. The pressure is enormous, and I’m really torn,” she said.
Other interviewees reported similar increases. A pharmaceutical sales worker in Shandong Province told The Epoch Times her husband was cutting household spending to help cover contributions after her income fell.
A company employee in Suzhou, Jiangsu Province, also told the publication he had to retroactively make up the difference after contribution rates rose.
Davy Jun Huang, a U.S.-based political economist and former columnist for Chinese state media outlet CNTV, told The Epoch Times that retroactive adjustments could further squeeze households and small businesses already facing weak incomes, layoffs, and stagnant wages.
He compared the practice to a landlord raising rent months later and demanding back payments for the earlier period.
Some workers also questioned whether future pension benefits would justify the financial burden. An unemployed former advertising worker in Shandong Province told The Epoch Times he had never contributed and would refuse even if authorities forced him to pay.
He questioned whether younger workers could expect future benefits comparable to those received by pensioners today.
A Foshan resident who has contributed for 10 years told The Epoch Times that he planned to stop paying next year after becoming self-employed.
“If there’s no money, how are we supposed to pay? Are they going to forcibly deduct it from my bank account?” he said.
Broader Economic Consequences
U.S.-based China current affairs commentator and former executive at a China-based private firm Wang He told The Epoch Times that requiring businesses to cover past unpaid contributions could worsen financial pressure on struggling companies. Closures and layoffs could then leave fewer workers able to contribute.
Wang also identified significant disparities in the Chinese social security system.
“One of the most prominent issues with China’s social security system is the inequity in distribution,” he said.
“The vast disparities between employees of government agencies and public institutions, enterprise workers, and urban and rural residents have triggered a strong public backlash.”
He estimated that government subsidies to the social security system exceeded 1 trillion yuan ($150 billion) annually and may have reached 1.5 trillion yuan ($224 billion) last year, adding that fiscal pressure could be driving efforts to increase collections.
China’s Supreme People’s Court issued a ruling in August 2025 clarifying that agreements between employers and employees to forgo legally required social security contributions are invalid. Employers that fail to pay may be required to settle arrears and late-payment charges.
Huang said that tighter enforcement could deepen public distrust and leave households and businesses with less money to spend, adding to pressure on domestic demand.
Li Jing, Luo Ya, and Gu Xiaohua contributed to this report.
