Core Viewpoint - The article emphasizes the need for a more suitable new system to continue the downward expansion of social insurance coverage, highlighting that increasing coverage and maintaining low contribution levels necessitate a stratified social insurance system [1][5]. Summary by Sections Social Insurance Coverage and Legal Context - The Supreme People's Court's recent interpretation clarifies that agreements between workers and employers to avoid social insurance contributions are invalid, supporting workers' claims for economic compensation [2]. - The interpretation is not a new regulation; the Social Insurance Law of 2010 already mandates participation in five basic social insurances, yet a significant number of workers remain uninsured [2][3]. Current Coverage Statistics - Since 2005, the coverage of urban employees in social insurance has expanded rapidly, with the insured workforce increasing from 130 million (46% coverage) to 387 million (82% coverage) by 2024 [2]. - Despite high participation rates, there is a discrepancy between insured individuals and those actually contributing, with compliance rates for pension insurance dropping from 89.98% in 2006 to 80.25% in 2015 [3]. Challenges in Coverage Expansion - The downward expansion of social insurance faces challenges due to low wage levels among target groups, leading to high contribution burdens for both employers and employees [4]. - Many provinces have minimum contribution bases exceeding twice the local minimum wage, affecting about 25% of workers earning at minimum wage [4]. Need for a New System - The current model of social insurance coverage cannot sustain both broad coverage and high contribution standards, risking pressure on small and medium enterprises and potentially increasing informal employment [5]. - A new system design is necessary to lower contribution thresholds and rates, suggesting that the total pension rate should be reduced to at least 15% to balance compliance between formal and informal employment [5].

Core Viewpoint - The recent interpretation by the Supreme People's Court regarding labor disputes clarifies that agreements to not pay social insurance are invalid, supporting workers' claims for economic compensation, but it is not a new regulation [1][2] Group 1: Social Insurance Coverage - The coverage of urban employee social insurance has rapidly expanded since 2005, with the participation rate increasing from 46% in 2005 to 82% in 2024, corresponding to 387 million insured urban employees [1] - Despite high participation rates, there is a significant gap between insured individuals and those actually paying contributions, with the compliance rate for employee pension insurance dropping from 89.98% in 2006 to 80.25% in 2015 [2] Group 2: Challenges in Payment Compliance - The low income levels of workers in rural areas and among low-income groups lead to a higher burden of social insurance contributions, discouraging both employers and employees from participating [3] - The minimum contribution base for social insurance often exceeds the local minimum wage by more than double, affecting 25% of workers earning at minimum wage [3] Group 3: Need for a New System - To continue expanding social insurance coverage, a new system is required that lowers the minimum contribution base and rates, ideally to the level of the minimum wage, and reduces the total pension rate to at least 15% [5] - A layered social insurance system is necessary to balance the compliance requirements for formal and informal employment, as the current model may lead to increased pressure on small and medium enterprises [4][5]