China Sees Backlash Over Mandatory Social Security Payments (1)

A ruling by China’s highest court has made it impossible for workers and their employers to waive social insurance contributions, triggering a broader discussion about inequalities in the welfare system.

The decision by the Supreme People’s Court bars informal arrangements between companies and their employees to opt out of mandatory social insurance payments from Sept. 1. If enforced, the rules are especially a threat to small and medium-sized businesses, according to Societe Generale SA, which estimates they could increase costs to workers and employers by about 1% of gross domestic product.

Alarm swept through social media in response to the ...