Cover Story: China’s Drive to Shore Up Social Security Funds Brings a Payroll Shock

In July, He Miao, an employee at a large IT outsourcing company in Shandong province, received an ultimatum: pay thousands of yuan in backdated social security contributions — including the money his employer should have contributed — or transfer to another subsidiary. Refusal would mean he would be put on a basic monthly salary of 4,000 yuan ($593).