The challenges surrounding social insurance for migrant workers are pressing, and ensuring their equitable treatment is a vital aspect of Chinese modernization. Photo: IC PHOTO

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In modern society, social insurance is a critical source of security for individuals. However, this system has not yet effectively served migrant workers. Most have not enrolled in social insurance for urban employees, and even among those who have, a significant proportion tend to withdraw prematurely. Research indicates that this situation stems from multiple factors.

First, institutional barriers hinder migrant workers’ enthusiasm for participating in social insurance. Migrant workers predominantly move from less developed regions to more developed ones. When transferring social insurance across regions, they can only retain the funds in their individual accounts. After returning to rural areas, the larger portion of the funds in the social pooling account remains in the original registration locality, leaving migrant workers unable to benefit from them. This undoubtedly discourages participation.

Second, the short-term nature of jobs for migrant workers undermines the long-term incentives of social insurance. These workers often seek immediate financial gain, and their contributions to social insurance accounts reduce their short-term income. Additionally, since many work in cities for limited periods, they fail to meet the required contribution durations and thus opt for withdrawals to secure immediate cash benefits. Migrant workers are also concentrated in highly mobile sectors, such as construction, catering, and delivery, frequently changing jobs and locations. Given that employers bear a substantial portion of contributions, frequent job changes necessitate transferring social insurance, which involves complex and discouraging procedures. 

Third, emerging employment models for migrant workers often downplay the role of social insurance. To avoid the obligations associated with traditional labor relations, some employers favor flexible employment arrangements. Many migrant workers are thus engaged as “collaborators” in the gig economy, taking on roles such as delivery personnel, ride-hailing drivers, and domestic workers. In such arrangements, platforms typically mitigate employment risks through commercial accident insurance, while social insurance contributions are left to the workers themselves as freelancers. However, the rate of participation under these conditions is very low.

To address these challenges, it is first necessary to expand low-threshold, low-premium social insurance to cover more migrant workers, thereby reducing their participation costs. Unlike urban employees, migrant workers can return to the countryside if they are unable to settle in cities. Some of them have access to contracted land in the place of household registration in rural areas. This unique position sets them apart from both urban workers and traditional farmers. It is therefore appropriate to explore a tailored social insurance model that provides higher benefits than rural old-age insurance but differs from urban employee programs.

In this regard, some cities in China have already implemented such cost-effective approaches. For example, Shanghai has established an independent social insurance system for migrant workers, integrating old-age, medical, and work injury insurance while reducing contribution amounts. 

Second, attention should be paid to improving the social insurance contribution model. Currently, urban employees in China are required to make bundled contributions to old-age, medical, maternity, unemployment, and work injury insurance. However, for migrant workers who retain ties to rural areas through land and familial connections, their workplace is often not their retirement destination. Binding their old-age insurance to their workplace may not align with their long-term interests.

For migrant workers, enhancing flexibility in contribution requirements is essential. Contributions should be differentiated by insurance type, allowing them to pay for certain programs independently while continuing to participate in rural old-age insurance at their place of household registration.

The challenges surrounding social insurance for migrant workers are pressing, and ensuring their equitable treatment is a vital aspect of Chinese modernization. Fundamentally addressing these issues requires further refinement of the remote medical insurance and old-age insurance transfer mechanisms.

Ding Fang is an associate professor from the School of Marxism Studies at Jinling Institute of Technology in Nanjing, Jiangsu Province. 

Edited by CHEN MIRONG