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In a move that has largely flown under the radar outside China, the country’s Supreme Court issued a landmark judicial interpretation on 1 August. The ruling legally voided any contractual agreement—regardless of a mutual “voluntary waiver” (in exchange for higher take-home pay)—that exempts an employer from paying social insurance contributions. These informal arrangements, particularly common among blue-collar workers and short-term hires, have been the norm for years. Now, the courts have made it clear: there is no such thing as opting out of social insurance.
Wednesday 17th September 2025
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