Shrinking funds, growing pains

China has reformed its pension system. Now who has a solution to the aftermath?

A new tax is on the drawing board to solve China's complex problem of enterprises failing to contribute to the country's central pension fund pool.

A mainland newspaper, Business Weekly, has quoted an unnamed source from the Ministry of Labour and Social Security that a decision had been made to introduce a social security tax. The tax will be used to fill the ever-deepening hole in the state's pensions coffers to help pay retirees and retrenched workers.


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