China’s booming gig economy, with some 200 million workers, has been plagued by issues such as low wages, and potential exploitation. - Photo: ST
CHONGQING, (China): Tired of his job as an attendant at an auto shop, which has been cutting his hours and refusing to offer him a permanent position, Qu Yong is considering making his side hustle as a delivery rider his main job.
The 27-year-old Chongqing native, who started making deliveries in 2025 to make ends meet, noticed that the government has been paying closer attention to the social protection of gig workers and pushing for better benefits for them.
The extra scrutiny gives him faith that his future as a full-time delivery rider will become more secure, he told The Straits Times.
China’s booming gig economy, with some 200 million workers, has been plagued by issues such as low wages, lack of benefits and potential exploitation.
The Benelux Chamber of Commerce in Shanghai, comprising companies from Belgium, the Netherlands and Luxembourg, reported in 2024 that China’s gig economy was worth 3.4 trillion yuan as at 2020.
In December, top lawmakers deliberated ways to offer better legal protection for the country’s workers in flexible employment, based on a report that pointed out that “issues such as unstable income and insufficient labour protection persist” despite strides made in recent years.
The report released on Dec 22, 2025, by the State Council, or China’s Cabinet, called for steps to be taken to improve protection and social insurance coverage for platform workers such as delivery riders, couriers and ride-hailing car and lorry drivers.
China could follow Singapore’s example of enacting a Platform Workers Act – which seeks to protect the rights of workers in the gig economy – to address the legal gap in China, Guo Shuqing, vice-chairman of the National People’s Congress (NPC) Financial and Economic Affairs Committee, said during a meeting.
Singapore has designated platform workers as a distinct category between employees and the self-employed since January 2025, extending them certain protections including work injury compensation coverage.
The NPC is China’s top legislative body, and its Financial and Economic Affairs Committee consists of lawmakers who research, deliberate and draw up Bills or proposals for the country’s financial sector and economy.
“Independent legislation should be enacted to govern the labour relations and protection of rights and interests of those who are in flexible employment,” said Guo, noting that it is difficult to directly apply existing labour laws to such working arrangements.
The state report said “participation rates in employee pension and medical insurance remain low, and the scope of occupational injury protection needs to expand”.
“The complexity of the workforce and long employment chains make it difficult to clarify responsibilities,” it noted.
The report also pointed out that current labour laws in China lag behind platform employment, “leaving gaps that some companies will use to evade responsibility”.
The State Council report noted that as at end-2024, the number of flexible workers participating in basic old-age insurance stood at 70.57 million, with those who paid for medical insurance lower at 66.159 million. This means less than half of those in gig work are enrolled in either scheme.
China’s social insurance system includes pension, medical insurance, unemployment insurance, maternity insurance, work injury insurance and a housing fund.
Lawmakers suggested clarifying the definition of flexible workers, to identify gig workers who have yet to receive their due protection and stop platform companies from evading their legal responsibilities.
China’s social insurance requires payments by both employers and workers. As platform workers are typically categorised as self-employed, those who enrol for the insurance have to bear the cost of both components.
This comes up to about 30 per cent of gig workers’ base income, said Guo, adding: “This excessive burden inhibits participation in the country’s insurance schemes.”
Assistant Professor Liu Xiangqing at the Xi’an-Jiaotong Liverpool University in eastern Suzhou city told ST that the State Council’s report and lawmakers’ deliberations signify that protecting gig workers has become a key priority.
“As more people become gig workers, protecting their rights is important not only for raising household income and boosting domestic consumption, but also for maintaining social stability,” he said.
Prof Liu, who studies labour and development economics, expects the authorities to roll out more initiatives, such as the expansion of occupational injury insurance coverage, within about three years.
The next step could also be the passage of the Healthcare Security Law, which could widen access for gig workers to take part in insurance programmes in the city they are working in, instead of being limited to their registered home towns.
But the law, which currently remains a draft that was released for public consultation in June 2025, “requires a longer legislative process, and it is not sure when the final version can be passed”, Prof Liu said.
For Qu, the auto shop attendant in Chongqing, the prospect of better gig work protections gives him “more than a slight push” to move later in 2026 to Shenzhen or Guangzhou, where there are more orders for delivery riders.
“The traditional job models in China are increasingly outdated, and bad practices such as making use of informal and cheap labour without providing basic benefits to workers remain too entrenched among employers,” he said.
“Working for platform companies seems overall to be a better option to secure my future.” - The Straits Times/ANN
