China to use big data to expand social security coverage

China’s Ministry of Human Resources and Social Security has announced plans to use big data to identify and mobilize uninsured individuals to participate in social security programs. The initiative aims to stabilize the basic pension insurance participation rate at over 95% during the ‘15th Five-Year Plan’ period.

Analysts suggest the move is intended to bolster pension funds by encouraging flexible workers, migrant workers, and those in new employment sectors to transition from resident pension insurance to employee pension insurance. This transition could significantly increase individual contributions, moving from hundreds of yuan annually to nearly ten thousand yuan.

However, the policy faces criticism due to economic pressures, including stagnant wages and rising living costs. Observers note that the push comes amid fiscal tightening and a demographic shift toward an aging population, which increases the strain on pension fund solvency. Recent reforms, such as the gradual delay of the statutory retirement age and increased minimum contribution years, further highlight the government's efforts to address the growing pension deficit.