CHINA

More Chinese Regions Tap Brakes on Social Security Payment Hikes

Published: Sep. 19, 2025 6:26 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Provincial-level regions including Beijing and Shanghai are reining in annual hikes to social security contributions. Photo: AI generated

Some of China’s provincial-level regions are slashing annual hikes to social security contributions, a move that signals growing economic pressure and an effort to ease the financial burden on employers and workers.

Beijing and Shanghai, along with other provincial-level regions including Jiangsu and Xinjiang, this week released their social security contribution bases for 2025. They revealed a pattern of slowing to near-flat growth. “Localities can no longer sustain the increases,” said a person from a human resources and social security department in eastern China.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China’s major regions, including Beijing and Shanghai, are dramatically slowing or even reducing annual increases in social security contribution bases for 2025.
Growth rates for social security contribution limits have dropped to around 1–1.5%, compared to previous annual increases of 8–9% in cities such as Shanghai and Jiangsu.
The shift aims to ease financial burdens amid economic slowdown, as rising contribution costs strain both businesses and workers facing stagnant wages.

AI generated, for reference only