McDonald’s recruitment ad for retirees. (Online screenshot)
[People News] The “Universal Mandatory Social Security” policy, set to take effect on September 1, has left China’s small and medium-sized business owners at a complete loss. Since early August, job postings have revealed that people over 50 who are already retired have suddenly become the most sought-after employees, shooting to the very top of the job market.
Since the beginning of August, phrases like “over 50, already retired” and “rehired retirees” have suddenly become the hottest keywords in recruitment ads.
On August 12, news that McDonald’s and Beijing Universal Studios were hiring elderly workers went viral on social media. Very quickly, conditions like “female 50 years old, male 60 years old” and “able to work at least three days a week” became templates for other companies to copy.
This strange phenomenon originated on August 1, when the Supreme People’s Court made it clear: any agreement that avoids social security payments, or in which workers voluntarily waive social security, is invalid; workers have the right to terminate such contracts and demand financial compensation. This judicial interpretation, officially coming into effect on September 1, has been widely understood by the public as the new “mandatory social security contribution regulation.”
As a result, one of the hottest questions on social media has been: “What type of employment doesn’t require paying social security?” The answer across posts has been the same: hire retirees, because employers don’t need to contribute to Social Security for them.
Some people even joked about “substituting for one’s father in the army”—meaning a 60-year-old father signs the labour contract, but the actual work is done by his child. In this way, companies both avoid social security payments and still get young labour.
According to Phoenix News’s review of job sites, many postings now explicitly note “retirees accepted” or “retirees welcome,” usually capping the age at 65. Popular positions include traditional service jobs like restaurant servers, landscaping workers, security guards, cleaners, and drivers, as well as some white-collar jobs like accountants, tutors, and sales of elderly-care products.
Li Xin, who runs a hot pot restaurant, said openly that from now on she will only hire retirees who don’t require social security contributions.
She explained that after 10 years in business in Chengdu, her restaurant has entered a “losing money” mode, with the worst month losing 40,000 yuan. When she learned that starting September 1, she would have to buy mandatory social security for employees, she felt like “the sky had collapsed.” If she has to keep paying social security while the restaurant is already losing money, she said, “this is leaving us no way to survive. I might as well close down.”
Zhang Yijing, who has worked for more than 10 years as an HR manager at a Shanghai catering company with hundreds of employees, told Phoenix News that the industry is now closely watching retiree recruitment.
Hiring retirees, she said, is the “most cost-efficient labour plan”—companies only need to cover two costs: wages and work injury insurance. Compared with signing a full labour contract with “five social insurances and one housing fund,” this saves more than half of the expense.
According to media reports, Shanghai pastry shop “Kaisiling” and snack chain “Xiao Yang Shengjian” have both posted recruitment ads specifically for retirees.
Financial magazines estimate that between 2022 and 2031, China will see the largest wave of retirements in history, with 20 million people retiring each year.
(First published by People News)
News magazine bootstrap themes!
I like this themes, fast loading and look profesional
Thank you Carlos!
You're welcome!
Please support me with give positive rating!
Yes Sure!