A female legal intern in China recently took to social media to express her distress. She revealed that despite earning a monthly wage of 2,500 yuan, after mandatory social security deductions, she is left with only about 700 yuan. Calculated over 22 working days per month, this amounts to a daily income of only around 30 yuan. Once essential expenses like metro fare and meals are deducted, she finds herself with barely any money to spare each day, even to the point of “losing money to go to work”.
The mandatory social security regulations set to be implemented by the Chinese government on September 1 have caught many small and medium-sized enterprises off guard. Numerous businesses are facing financial pressure and operational challenges due to lack of preparation, with some expressing concerns and difficulties adapting to the new policy. Some employees are even having over half of their monthly salaries withheld by employers, leaving them in dire straits.
Recently, a video shared on an overseas social media platform by former Chinese lawyer Chen Qiu revealed a young woman emotionally distraught over her situation. She tearfully shared that after social security deductions, she is left with only 700 yuan, which amounts to just over 30 yuan per day for 22 working days a month. She lamented that the daily metro commute costing 12 yuan each way, along with meal expenses, makes it nearly impossible to sustain even basic living expenses.
In her emotional plea, the young woman continuously wiped away tears, explaining the financial struggles she faces. She highlighted the challenges of being a law student aspiring to be a practicing lawyer, where work experience is required, and without being able to afford social security or gain credentials, she questioned the point of pursuing a legal career in a society that seems to overlook her financial plight.
Online commentators expressed sympathy for the young woman’s predicament. One user wrote, “The plight of ordinary Chinese people is truly pitiful. Don’t cry, in the future, female liberal arts students from Wuhan University may struggle to even find work.” Another remarked that it appeared the female intern was actually losing money by going to work. Some netizens criticized the mandatory social security system as a major deceit.
Looking back at China’s social security system history, the first mention of establishing a multi-tiered social security system came in 1993. Authorities emphasized that urban workers should share the burden of pension and medical insurance contributions with their employers. Subsequent regulations in 1999 and 2008 reinforced the obligation for all employers to contribute to social security for their employees, though full compliance was not achieved until the mandatory implementation starting on September 1 this year.
Legal commentator Yue Wu from Wuhan, in an interview, revealed that the case of the law school intern exposes a structural contradiction between China’s internship system for lawyers and the social security system. Wu stated, “The upcoming mandatory social security scheme forces businesses to pay social security contributions while the intern salaries are inadequate to support basic living expenses. This arrangement traps young people in a situation where they must choose between degrees or money, leading to a dead end. This is not due to inadequate government consideration but rather the whims of the system.”
Comments under the video expressed frustration with the social security system, with one user lamenting, “Social security may save lives, but it cannot secure jobs.” A user named “Tangyuanmom” calculated that such intern wages effectively meant “losing money to work”, trading time and money for an uncertain future.
Chinese scholar Qian Fen analyzed that compared to developed Western countries, China’s social security payment ratio is relatively high globally, particularly impacting young individuals with low incomes. She noted, “Under the current system where professional qualifications are linked to social security, this high and compulsory payment effectively treats recent graduates as cash cows rather than new professionals needing support. For small and medium-sized enterprises, this will lead to closures due to unbearable financial burdens, ultimately resulting in significant loss of corporate income tax revenue for the government.”
Many netizens criticized the fairness of the social security system. A user known as “Zouxikou” pointed out, “Mandatory social security exists in developed countries, but the glaring disparity in benefits within the Chinese system is disheartening. The disparities in pension benefits between insiders and outsiders, urban and rural areas, government agencies and enterprises are chilling. The difference in retirement benefits between those who contribute and those who do not can be multiple times over.” Another user under the nickname “Stellar” bluntly stated, “Rather than risk driving young people into unemployment and homelessness, the government should consider reducing corporate taxes and cutting high retirement benefits for civil servants and monopolistic industry, this kind of governance is truly a serious issue.”
An unnamed expert from the Chinese Labor Economic Society suggested that the authorities must redesign the social security system to avoid severe consequences. He emphasized the need to consider temporarily reducing social security fees for young low-income professionals, especially those tied to occupational qualifications such as lawyers and doctors. This adjustment would allow them to survive and stabilize their positions in the early stages of their careers before fully assuming the payment obligations. He warned that failure to adjust policies could lead to a hiatus in professions with high entry barriers, resulting in long-term costs for the Chinese government.