Delivering social benefits

Challenges, benefits

According to a survey conducted by the National School of Development at Peking University, which gathered responses from over 30,000 delivery workers, only 10 percent accept the current proportion of social insurance relative to their income.

The survey revealed that if delivery riders are obligated to contribute to social insurance, 23.5 percent were not willing to pay, and 38.9 percent were only willing to contribute less than 5 percent of their monthly income.

Delivery riders tend to prioritize cash flows, with social insurance ranking behind income and job flexibility in terms of importance.

Last year, the average monthly income of delivery workers in China reached 7,469 yuan, placing them among the top tier of blue-collar occupations, alongside truck drivers and housekeepers, according to the blue-collar employment survey report.

Zhang Chenggang, director of the research center of new forms on employment, said, "On one hand, without social insurance, delivery workers lack essential support after retirement."

"On the other hand, making social insurance mandatory would increase labor costs for on-demand service platforms by around 40 percent. This could lead to reduced business operations and job opportunities, or lower wages for delivery workers."

Covering premiums of social insurance for Meituan's over 820,000 delivery riders would cause labor costs to increase by nearly 10 billion yuan, equivalent to 70 to 80 percent of the company's profit, according to Zhang.

While delivery riders with prior experience in other jobs understand the importance of social insurance, many younger riders remain unaware of its benefits.

Zhang Xingxing, who turned 18 last year, became a delivery rider for Meituan in March. "I saw the news that Meituan is covering pensions for riders. Although I don't know much about the different types of social insurance, I think it's important to plan for the future."

Zhang and his peers, mostly aged between 18 and 21, are among the youngest workers in the delivery area in Beijing. Many of them said they knew little about social insurance.

Voluntary contributions to social insurance based on the flexible employment system may not be able to motivate workers to participate and stabilize the labor force if delivery workers have low expectations for long-term benefits and a low willingness to participate, according to Zhang Chenggang.