China’s Ministry of Human Resources and Social Security (MOHRSS) has released the 15th Five-Year Plan for Human Resources and Social Security Development (2026–2030), outlining major policy priorities for employment, social security, wage reform, and workforce development over the next five years.
For employers operating in China, the plan provides valuable insight into the future direction of labor policy, payroll management, social insurance compliance, and talent development.
Below are the key takeaways businesses should understand.
Employment Remains a National Priority
The plan continues to emphasize the Employment-First Strategy, aiming to maintain stable labor market conditions while supporting economic transformation.
Key employment targets during the 15th Five-Year Plan include:
- Maintaining large-scale urban job creation.
- Re-employing 25 million unemployed urban workers.
- Helping 6.5 million people with employment difficulties secure jobs.
- Keeping the surveyed urban unemployment rate below 5.5%.
- Providing more than 50 million government-supported vocational training opportunities, including 17.5 million for migrant workers.
The government also plans to strengthen coordination between employment policies and broader fiscal, industrial, investment, trade, and regional development strategies.
Emerging Industries Will Create More Jobs
The plan identifies several industries expected to generate significant employment growth over the coming years.
These include:
- Digital economy
- Green economy
- Marine economy
- Low-altitude economy
- Modern service industries
- Future strategic industries
China will continue supporting sectors with strong employment potential while encouraging innovation-driven economic development.
For employers, competition for skilled professionals in these industries is expected to increase.
Expanded Support for Key Workforce Groups
The plan includes targeted employment initiatives for several groups:
University Graduates
Authorities will expand:
- Employment internships
- Career guidance
- One-on-one employment assistance
- Graduate recruitment support
Migrant Workers
Policies will focus on:
- Expanding urban employment opportunities
- Supporting local employment near workers’ hometowns
- Improving vocational training
Vulnerable Job Seekers
The government will continue implementing policies to eliminate “zero-employment households” and provide employment assistance for disadvantaged individuals.
Digital Employment Services Will Continue to Expand
China plans to modernize public employment services by developing:
- Community-based 15-minute employment service circles
- Livestream recruitment events
- Remote interviews
- Digital employment platforms
- AI-assisted employment services
These initiatives are expected to improve labor market efficiency and reduce recruitment costs.
Pension Coverage Will Continue to Expand
The plan reinforces China’s long-term commitment to strengthening its social security system.
Major objectives include:
- Maintaining a basic pension insurance participation rate above 95%.
- Expanding unemployment insurance coverage to 255 million participants.
- Increasing work injury insurance coverage to 345 million participants.
- Growing enterprise annuity funds beyond RMB 9 trillion.
China will also continue implementing the gradual retirement age reform introduced in recent years.
Greater Social Insurance Access for Flexible Workers
One of the most significant policy developments concerns flexible employment.
The government plans to:
- Remove household registration (hukou) restrictions for flexible workers joining the employee pension system.
- Expand pension coverage for gig workers, migrant workers, and platform workers.
- Encourage more self-employed individuals to participate in employee social insurance programs.
These measures are expected to improve labor mobility while expanding long-term pension protection.
Wage Reform Will Focus on Frontline Employees
The plan introduces several initiatives to improve wage distribution.
Key measures include:
Strengthening Enterprise Wage Mechanisms
China will continue promoting:
- Enterprise wage negotiation systems
- Collective wage bargaining
- More market-oriented wage determination mechanisms
Improving Minimum Wage Adjustment
Authorities will further refine minimum wage adjustment mechanisms while strengthening enforcement against wage arrears.
Directing Wage Growth Toward Frontline Positions
One notable policy direction is encouraging employers to allocate wage increases toward frontline employees and lower-paid occupations.
The government also encourages industry-level negotiations on minimum wage standards in sectors with relatively lower wage levels.
While these policies do not mandate salary increases, they signal the government’s intention to narrow income disparities and improve wage growth among frontline workers.
Expanding the Middle-Income Group
The plan aims to steadily increase the size of China’s middle-income population.
Priority groups include:
- Skilled workers
- Technical professionals
- Migrant workers
- Employees with vocational qualifications
By improving wages, expanding skills training, and strengthening social security, policymakers hope to promote broader income growth.
Artificial Intelligence Will Support HR Services
The plan also highlights the growing role of artificial intelligence in China’s human resources system.
Future initiatives include:
- AI-powered employment services
- Intelligent labor market analysis
- Digital public HR platforms
- Smart social insurance administration
- Technology-enabled workforce management
Businesses should expect increasing digitalization across recruitment, employment services, and government HR administration.
What This Means for Employers
Although the 15th Five-Year Plan primarily sets policy direction rather than introducing immediate legal changes, it provides a clear indication of China’s HR priorities through 2030.
Foreign-invested enterprises and domestic employers should closely monitor developments in:
- Employment policy updates
- Wage and salary reforms
- Minimum wage adjustments
- Social insurance participation requirements
- Pension system reforms
- Workforce training initiatives
- AI-enabled HR administration
Understanding these policy trends can help businesses better prepare their long-term HR, payroll, and compliance strategies in China.
If your organization requires assistance with China payroll, social insurance compliance, workforce management, or employment regulations, please visit our Contact Us page to connect with our advisory team.
