On September 1, the mandatory social security policy of the Communist Party of China officially came into effect. Many struggling restaurants, in order to save on labor costs, have started recruiting service staff from the elderly population. Recently, there have been multiple job postings in Shanghai specifying that male employees must be over 60 years old and female employees over 55. Some netizens have humorously commented, “Previously only hiring those below 35, now it’s the turn for the elderly to become the main workforce, how the tables have turned.” This topic has become a trending discussion on Weibo.
The mandatory nature of the social security payment policy has caused a heavy burden on costs for hundreds of thousands of small businesses in China, leading to closures, with small restaurants being hit the hardest. Industry insiders are worried that mandatory social security will only make the already fragile small businesses struggle even more. According to regulations, the social security payments made by businesses for their employees often amount to around 50% of the employees’ salaries, which is a significant burden for the restaurant industry where labor costs are high. In the past three days, there has been a large influx of reports on social media of young employees being laid off and replaced by retirees who are not required to pay social security, sparking discussions on Weibo.
In Shanghai, a job posting from the restaurant chain “Xiao Yang Sheng Jian” explicitly stated that they are hiring service staff fluent in Shanghainese, offering a comprehensive salary of 3,200 yuan with a one-day-on, one-day-off schedule, and specifically requiring candidates to be “over 50 years old.” Another community canteen located on Hongyan Road in Putuo District has recruitment requirements stating that male employees must be over 60 and female employees over 55, promising “generous benefits, and delicious food,” with criteria as simple as “steady hands in serving dishes and stable walking.”
Mrs. Wang, a resident of Jing’an District in Shanghai, mentioned in an interview with a reporter from Dajiyuan that after retiring for four or five years, she unexpectedly received an invitation from a wonton shop offering a monthly salary of 3,000 yuan without the need for social security payments. She expressed her surprise, stating, “I never thought that younger people are having trouble finding jobs, while it’s now our elderly who are in demand.”
Mr. Wu, a retiree from Hangzhou, also told reporters that many cafes in the area have started laying off young employees and hiring retirees. He said, “I heard that some retirees can earn up to 4,200 yuan per month, which is already quite good for retirees, but it’s difficult for those in their middle years who have dependents.”
However, experts have cautioned that while this recruitment model may relieve employers’ economic pressure, it exists in a legal gray area. Older workers may have relatively weaker physical strength and slower reaction times, which could lead to safety incidents if labor protections are not adequate. Additionally, this shift in employment may further squeeze the job opportunities for middle-aged and young people, exacerbating employment imbalances.
Industry observers have pointed out that similar phenomena are emerging in cities like Beijing and Hangzhou, with even large scenic spots like Universal Studios openly recruiting retirees. According to Dahe News, Universal Studios openly recruits retirees at an hourly wage of 30 yuan.
Public opinion generally believes that the recruitment of elderly individuals by businesses reflects the conflict between mandatory social security policies and economic realities, which could have disastrous effects on the pressure faced by young and middle-aged individuals.
Mr. Wu mentioned that currently, both Chinese companies and workers are seeking their own “survival loopholes,” stating, “Many companies in Zhejiang are already laying off employees due to lack of orders. With the implementation of mandatory social security, businesses are facing even greater difficulties, and I foresee another wave of factory closures.”
Data shows that according to the 2023 statistics from the Ministry of Human Resources and Social Security of the Communist Party of China, nationally, enterprises pay an average of 38% to 45% of employees’ salaries towards the “five insurances and one fund,” with pension and medical insurance accounting for the highest proportions. For positions with monthly salaries of 3,000 to 5,000 yuan, employers are required to bear an additional social security cost of 1,000 to 2,000 yuan per month.
Industry estimates suggest that if mandatory social security is strictly enforced, it will lead to a significant compression of profit margins for low-profit small and micro enterprises to below 5%, with some businesses potentially withdrawing from the market altogether.