Core Points - The new social security regulation, effective from September 1, mandates that any agreement to not pay social security is invalid, indicating a shift towards compulsory social security contributions [3][4][7] - The policy reflects a growing concern about the sustainability of social security in the face of demographic changes, particularly an aging population [5][15][32] Group 1: Social Security Changes - The new regulation emphasizes that not paying social security is no longer an option, addressing the existing gray areas where many individuals and small businesses previously avoided contributions [9][10] - The essence of social security is to balance short-term and long-term benefits, ensuring individuals contribute a portion of their income for future security [10][11] Group 2: Financial Implications - In Shanghai, for a gross salary of 10,000 yuan, the employee receives 8,152.5 yuan after deductions for social security and taxes, while the total cost to the employer is 13,270 yuan [12][14] - The financial burden of social security contributions is expected to increase for both employers and employees as the demographic structure shifts, leading to higher costs in the future [32] Group 3: Demographic Challenges - The aging population is creating pressure on the social security system, with the old-age dependency ratio projected to rise significantly in the coming years [21][23] - The current social security model relies on the working population to support retirees, but the decreasing ratio of workers to retirees poses a challenge for sustainability [19][20][22] Group 4: Global Perspectives on Pension Systems - The global pension landscape features two main models: the pay-as-you-go system and the funded accumulation system, with China's system combining elements of both [26][28] - Countries worldwide are exploring various pension models to address the challenges posed by aging populations and declining birth rates, indicating a trend towards reform [29][30]