China's low income earners forgo social security programs

CHINA - People with low incomes tend not to participate in social security programs for more pay from employers, a government report shows.

The report on the application of China's Social Insurance Law, conducted by the Institute of Social Security under the Ministry of Human Resources and Social Security, showed that low-income groups such as migrant workers, the self-employed and people who change jobs frequently are willing to forgo social security programs for more pay from employers.

According to a Beijing Time story on Tuesday, the report also said that small and labour-intensive companies have difficulty in covering all of their employees. Most can only pay social insurance for their senior managers and technicians.

By the end of 2012, the number of participants in the national pension insurance programme in urban areas had increased more than 47 million, compared with 2010. The number of participants in basic medical insurance programs had increased by about 100 million from 2010 to 2012.

China's Social Insurance Law took effect on July 1, 2011.

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