China to Optimize Social Security System to Cover Flexible and Migrant Workers

On July 20, 2026, China's State Council convened an executive meeting to outline plans for optimizing the national social security system. The meeting emphasized enhancing the system's integration, sustainability, and adaptability, particularly by exploring new social security models for flexible workers and improving housing security for migrant workers. As of March 2026, China's three major social insurance funds held a combined balance of 10.8 trillion yuan, but officials and experts note that external uncertainties and shifting employment patterns require deeper structural reforms.

Social security is the cornerstone of public welfare and social equity. As China's flexible workforce and platform economy expand, integrating these populations into the safety net while managing over 10 trillion yuan in funds is critical for long-term social stability and high-quality economic development.

On July 20, 2026, China's State Council held an executive meeting focused on optimizing the nation's social security system. The leadership called for greater systemic coordination, improved resource allocation, and enhanced long-term sustainability to address emerging economic challenges. China's social safety net operates on a massive scale. By the end of March 2026, the country's basic pension, unemployment, and work injury insurance programs covered 1.073 billion, 247 million, and 319 million people, respectively. Together, these three social insurance funds held a cumulative balance of 10.8 trillion yuan, maintaining stable operations. However, Lu Quan, vice president of the China Association of Social Security, cautioned that external uncertainties and shifting domestic employment trends present new challenges to the system. To adapt, the State Council urged policy innovations to enrich China's multi-level social security framework. Key priorities include exploring new social security models for flexible workers, optimizing housing security for migrant workers, and sharing care resources for disabled individuals. Lu noted that bringing flexible, migrant, and gig-economy workers into the system is essential to transition from "broad coverage" to "full coverage." The meeting also emphasized upgrading the national social security public service platform. As of March 2026, the platform offered 104 national and cross-regional services, with 1.39 billion people holding physical social security cards and 1.107 billion using electronic versions. Moving forward, the government plans to leverage advanced technologies to refine management and make services more accessible. These efforts align with the recently released "15th Five-Year Plan" for Human Resources and Social Security Development, which targets fund safety, value preservation, and pilot expansions for occupational injury protection.