Affecting Over 200 Million People, Support Policies for Flexible Workers to Participate in Employee Insurance Will Be Introduced

The “Government Work Report” this year proposed “introducing policies to support flexible employment personnel and new employment form workers to participate in employee insurance.”

With low thresholds and high flexibility, coupled with changing career preferences among young people today, flexible employment models are increasingly favored by workers. Some positions in e-commerce and service industries, due to seasonal factors, experience obvious fluctuations, leading companies to prefer more flexible staffing arrangements. Data shows that by the end of 2024, China’s flexible employment personnel have exceeded 240 million, with 84 million working under new employment forms.

How can the legitimate rights and interests of workers in various new employment forms be protected? What protections are available?

Employee Pension and Occupational Injury Insurance

In recent years, beyond sectors like domestic services, catering, retail, and ride-hailing, new formats such as live streamers have also absorbed a large number of workers. While contributing significantly to economic and social development, issues like “insurance gaps” and “coverage lapses” in pension insurance for some groups have become increasingly prominent.

The “Government Work Report” proposed “introducing policies to support flexible employment personnel and new employment form workers to participate in employee insurance.”

In reality, the participation rate of flexible employment and new employment form workers in basic pension and medical insurance remains low, and coverage of occupational injury protection needs further expansion.

At the 19th meeting of the 14th National People’s Congress Standing Committee, Wu Xiuzhang, Vice Minister of Human Resources and Social Security, pointed out that the number of flexible employment and new employment form workers is still rapidly increasing. Issues such as unstable income and insufficient labor protection still exist to some extent, and systems and mechanisms need further improvement and reform.

By the end of 2024, the number of flexible employment workers participating in basic pension insurance and basic medical insurance reached 70.57 million and 66.159 million respectively, with coverage rates below 40%.

Earlier this year, Wang Xiaoping, Secretary of the Party Leadership Group and Minister of the Ministry of Human Resources and Social Security, responded to media questions by stating that, based on the characteristics of flexible employment groups, relevant support policies are being studied and improved to help flexible workers and new employment form workers participate in pension insurance and enjoy higher-quality social security. Efforts are also underway to expand pilot programs for occupational injury protection nationwide and include more new employment form workers in coverage. Additionally, the scope of unemployment and work injury insurance is being expanded.

It is reported that the occupational injury protection pilot began in 2022. Under the framework of work injury insurance, combined with the characteristics of new employment forms, a “per-job billing, per-job coverage” model was proposed. As of the end of October 2025, 11 pilot companies across 17 provinces participated, with a total of 23.25 million insured, ensuring that all eligible new employment form workers within the pilot scope are covered.

Personal and Commercial Pensions

Starting December 15, 2024, the personal pension system will be fully implemented nationwide, with tax incentives expanded across the country.

However, currently, China’s personal pension operates under the EET tax-advantaged model, meaning contributions are tax-deductible, investment earnings are tax-free, and withdrawals are taxed at a 3% personal income tax rate. For many flexible employment and new employment form workers whose income does not reach the individual tax threshold and have no tax deductions, this model results in an additional 3% personal income tax at withdrawal, which may dampen their willingness to participate.

Industry experts suggest improving the personal pension system and innovating policy mechanisms to focus on expanding coverage for middle- and low-income earners, especially to effectively include private enterprises, small and medium-sized enterprises, and flexible workers, meeting diverse pension needs. For example, adding a TEE tax-advantaged model on top of the existing EET could avoid additional tax burdens at withdrawal and lower participation barriers.

Beyond improving the personal pension system, commercial pension products are also a form of protection suitable for flexible employment and new employment form workers.

“Commercial pensions are retirement financial products that combine strong pension security with inclusive finance features, offering flexible contributions, value preservation and appreciation, and flexible withdrawals,” said Zhou Yanfang, a representative of the National People’s Congress and Director of the ESG Office at China Pacific Insurance’s Strategic Research Center. She believes these features align well with the retirement needs of flexible and new employment workers. She recommends accelerating the expansion of commercial pension pilot programs to provide more accessible and adaptable retirement security services for broader groups.

She pointed out that commercial pensions support flexible contribution amounts and frequencies, suitable for income fluctuations and unstable payment abilities; long-term, steady investments by professional institutions help preserve and grow retirement funds, balancing safety and long-term returns; and flexible withdrawal plans can be tailored to individual lifecycle needs, including emergency withdrawals, balancing long-term retirement savings with short-term fund needs.

Since January 1, 2023, as an innovative commercial pension insurance business, pilot programs have been launched in Beijing, Shanghai, Jiangsu, and other 10 provinces (cities), with participation from four pension insurance companies: PICC Pension, China Life Pension, Taiping Pension, and National Pension. Over the three-year pilot, the scale of new contributions and existing policies for commercial pensions has steadily increased.

Employer Liability Insurance and Group Accident Insurance

Beyond pension protection, how can health coverage for gig workers be addressed?

Employer liability insurance is a type of commercial insurance paid for by employers. When employees experience accidents or occupational diseases during work, the insurance company covers the employer’s compensation responsibilities. Compared to basic work injury insurance, employer liability insurance can cover additional costs such as lost wages and legal fees, further easing the burden on companies.

How to protect gig workers? Insurance industry insiders note that employer liability insurance requires companies to provide clear employee lists, with premiums determined based on the number of employees and job types. Generally, employees hired through flexible employment platforms, due to their special labor relations, can usually only purchase accident insurance.

From the difference between the two, group accident insurance covers the individual employee directly, providing compensation to the employee; while employer liability insurance covers the employer, with payouts used to fulfill employer responsibilities.

Some insurance providers have launched accident insurance products targeting gig workers, such as “Flexible Work Insurance” sold on certain online platforms, suitable for network streamers, domestic helpers, and other flexible workers. These products provide compensation for accidental disability or death, and reimburse outpatient and hospitalization medical expenses caused by accidents. They can be purchased by employees themselves or by employers, with coverage for up to 10 people per policy.

Flexible employment often involves uncertain working hours. From a product design perspective, these products can offer flexible coverage periods, from as short as one day, with daily premium payments, and coverage amounts of 100,000, 300,000, or 500,000 yuan for accidental death/disability, as well as 10,000, 30,000, or 50,000 yuan for accidental medical expenses.

It is worth noting that group medical insurance has low overall rates and strong payout capacity, making it an important way to improve healthcare protection for employment groups.

Sun Jie, a member of the National Committee of the Chinese People’s Political Consultative Conference and Deputy Dean of the Insurance School at University of International Business and Economics, said that for companies, purchasing group insurance for employees can leverage economies of scale to reduce overall costs, allowing more funds to cover drugs and procedures outside the medical insurance catalog or to procure high-quality health services to improve employee health. For society, group insurance, mainly funded by companies and employees, can expand coverage and effectively reduce the burden of major illness medical expenses.

To enhance the protection capacity and service experience of group insurance products, Sun Jie suggests promoting “fast claims” and “direct settlement” through platforms like “Medical Insurance QR Code” and “Commercial Insurance QR Code.” She also recommends integrating health records, health services, and coverage plans through AI health management assistants, making employees’ health protection more tangible, visible, and controllable.