Surviving Broke

If both your employer and you have paid into the yibao (basic medical insurance) system for at least one year and you didn’t resign voluntarily, you can receive payments after completing unemployment registration. If contributions total between one and five years, benefits last up to 12 months; between five and ten years, up to 18 months; and for ten or more years, up to 24 months. During this period, the unemployment insurance also covers your employee medical insurance premiums. The total number of years of contributions is 1999.

Cost

There is no cost. You can submit the application via smartphone using any of three portals: the “12333 Mobile App”, the e‑Social Security Card mini‑program in WeChat or Alipay, or the National Social Insurance Public Service Platform. Having a social security card or ID is enough; in most regions you won’t need to visit an office. The prerequisite is to first register as unemployed.

Benefit

To qualify you must meet three criteria: (1) your employer and you have each contributed to unemployment insurance for at least one year; (2) you lost the job through no fault of your own (legally termed “termination not due to personal choice”); and (3) you have registered as unemployed and are actively seeking work. The duration of benefits depends on your contribution history — up to 12 months for 1–5 years of contributions, 18 months for 5–10 years, and 24 months for 10+ years. Monthly amounts are set by provincial governments and vary by region; they are generally above the urban dibao level yet below the local minimum wage. The national aim is to gradually raise these payments to 90% of the minimum wage. While receiving benefits, you retain full eligibility for employee medical insurance, with premiums paid by the unemployment insurance fund on your behalf.

Note

Voluntary resignations do not qualify as “termination not due to personal choice”. Unemployment insurance pays your employee medical insurance premiums while you receive benefits. Exact amounts differ widely across provinces; always refer to the figures published by your local authority. The “90% of minimum wage” target originates from a 2017 guideline issued jointly by the Ministry of Human Resources and Social Security and the Ministry of Finance (Document No. 71 [2017]), which states that benefits should be “gradually raised to 90% of the minimum wage”; this is a long‑term goal, not an immediate standard.

Both processes cost nothing. Start by calling 12333 or visiting the local Human Resources and Social Security Bureau’s labor inspection office. Within 60 working days of acceptance, they will investigate and can order the employer to pay wages; failure to comply results in an additional penalty of 50% to 100% of the owed amount. If that doesn’t work, file for arbitration, which must be concluded within 45 days. However, “case closure” does not guarantee payment: if the employer has no assets or the owner has fled, even a favorable ruling may leave you unpaid. In 2024, the total amount of wages successfully recovered through enforcement efforts reached 2.3 trillion yuan.

Cost

There are no fees for either option. You’ll need to gather your employment contract, pay stubs, attendance records, bank transfer statements, and any relevant chat logs, then visit the local Human Resources and Social Security Bureau or arbitration commission one to three times. There is a one-year deadline (known legally as the arbitration statute of limitations) for filing an arbitration claim. Employees still working for the employer are exempt from this deadline; those who have already left must file within one year of their departure. The main difficulty lies in making repeated trips and collecting all necessary evidence, which can be discouraging.

Benefit

The first step is to file a complaint. Call 12333 or visit the local labor inspection office. By law, they must complete their investigation within 60 working days, extendable by another 30 days for complex cases. If violations are confirmed, they can order immediate wage payment; noncompliance triggers an extra penalty of 50% to 100% of the original amount. In 2024, labor inspectors nationwide handled 137,000 cases, securing back pay totaling 8.65 billion yuan for 654,000 workers. If you possess a written IOU or clear wage records, you may also request a payment order directly from a local court; such orders are issued within 15 days of application. The second step is arbitration, which must be finalized within 45 days, extendable by 15 days. Workers seeking unpaid wages may request provisional enforcement even before the full trial concludes. Claims up to 12 times the local monthly minimum wage qualify as final and binding one-instance arbitration, meaning the employer cannot appeal further. In 2024, 4.257 million arbitration cases were filed, with 4.156 million resolved, resulting in 93.47 billion yuan recovered. Mediation succeeded in 79.6% of cases, while 98.2% of arbitrations concluded successfully, and 73.7% never reached court. Critics claiming resolution takes “six months to a year” refer to cases that proceed to civil litigation after arbitration: a first-instance trial lasts six months (or three months under simplified procedures), followed by a three-month appeals phase. In 2024, courts resolved 88,000 labor wage cases, recovering 28.54 billion yuan, and 998 individuals were convicted under criminal statutes for wage theft.

Note

These pathways are effective, but it’s crucial to distinguish between “case closure” and actual payment receipt. The 98.2% closure rate reflects only procedural completion; many workers still receive nothing if employers lack assets or abscond. The Supreme People’s Court publishes only total enforcement figures (2.3 trillion yuan in 2024) and a “high completion rate,” offering no data on how much of that actually reaches workers. The term “arbitration termination rate” lacks an official definition here; it is interpreted as cases never appealed to court. Criminal prosecution thresholds apply when wages remain unpaid for three months or more: either to a single worker for 5,000 to 20,000 yuan, or to ten or more workers for a combined total of 30,000 to 100,000 yuan. Provincial courts set exact amounts within these ranges; check your local figure before filing. Construction workers benefit from dedicated wage accounts and guarantees by general contractors, making direct appeals to contractors less effective. Legal aid for migrant workers seeking unpaid wages is granted regardless of financial status. Legal citations derive from State Taxation Administration and Guizhou Market Supervision Administration pages (both on gov.cn), as the National People’s Congress website remains inaccessible; verification of the Eighth Criminal Law Amendment relied on manual curl checks.

If you’re trying to recover unpaid wages, claim alimony, secure social insurance or dibao benefits, or seek compensation after acting in defense of others, you’re eligible for free legal aid. Just call 12348 or visit your local legal aid center. Since 2022, you no longer need to return to your hometown to obtain proof of financial hardship – a simple, honest statement of your financial situation is enough. For defendants facing the death penalty, or those who are blind, deaf, mute, or minors, a lawyer is assigned regardless of their financial status.

Cost

Zero. Legal aid costs nothing for those who receive it.

Benefit

The State Council’s regulations explicitly list six categories of civil cases covered by legal aid. They read: “Requests for state compensation; claims for social insurance or dibao benefits; applications for pensions or relief funds; demands for alimony, child support, or spousal maintenance; claims for unpaid labor wages; and cases involving civil rights resulting from acts of civic courage.” In short, this covers all the above situations. In criminal cases, defendants facing the death penalty, as well as blind, deaf, mute, and minor defendants, are all guaranteed a lawyer regardless of their financial standing.

Note

The Legal Aid Law took effect on January 1, 2022, introducing one key change: the requirement to submit proof of financial hardship has been removed. Now, a straightforward statement of one’s financial situation suffices – there’s no need to return to one’s hometown for documentation. Access points include local legal aid centers, public legal service hubs, or a call to 12348.

Shelters provide food and a place to stay; if you fall ill, they send you to a hospital and help you contact your family. Those who can’t afford a ticket home receive one. Generally, you may stay no longer than 10 days. Entry and departure are completely voluntary – it’s not a detention center, and no cash is handed out. Tickets are issued based on your household registration or current residence, so think carefully about where you want to go before you arrive.

Cost

There is no cost. You can go to your local civil affairs bureau or shelter on your own, or ask police or civil affairs officials to take you there. When you enter, you must truthfully provide your name and list any personal belongings. The hard part is mustering the courage to admit that you have no money and nowhere to stay.

Benefit

Shelters supply food and lodging that meet basic hygiene standards. If you suddenly fall seriously ill while there, they arrange hospital treatment. They also help you reach out to relatives or employers. For those lacking funds to return to their hometown or current residence, they issue a travel voucher – essentially a bus or train ticket. Your “household registration” is your hometown, while “current residence” is wherever you’re living now. The maximum stay is usually 10 days, though extensions are possible if you’re awaiting family pickup, medical care, or other arrangements. Police and other government staff encountering homeless or begging individuals must inform them of this assistance option. Special care is given to disabled persons, minors, the elderly, and anyone with mobility issues – they are guided and escorted to the shelter (nationwide, since 2003).

Note

Entry and departure are entirely voluntary; this is not a detention center. Basic food and lodging are provided, but no cash is given. Travel vouchers are issued based on household registration or current residence – be sure to decide where you want to go before seeking help.

Public agencies like employment service centers and human resources markets provide job matching, career guidance, policy advice, and both employment and unemployment registration — all completely free of charge. The law explicitly forbids them from charging for these services. Registering on gig platforms and posting job listings there is also free. Use this same registration to apply for unemployment benefits or to be recognized as someone facing employment difficulties.

Cost

No cost at all. Register at any public employment service agency at the county level or above — such as employment service centers or human resources markets. You can also register on local gig platforms. If you don’t know the address, call 12333 for help.

Benefit

The law guarantees that the following services must be provided at no cost: advice on employment policies; information on job openings and labor shortages; career guidance and job placement; processing of both employment and unemployment registration; and targeted employment assistance for people facing employment difficulties. These agencies are prohibited from engaging in any commercial activities, meaning they cannot profit from these services. Gig job postings and registrations are likewise offered to the public free of charge and are now part of the broader public employment information system. Special support is also provided to long-term unemployed workers and low-income gig workers (nationwide).

Note

Unemployment registration is a prerequisite for receiving unemployment benefits and for being recognized as someone facing employment difficulties — so be sure to complete it at the same time. For gig workers paid daily, verify the pay amount on the spot and keep the employer’s contact details and records of the work performed.

If a sudden crisis strikes — like a fire, car crash, or a family member’s sudden serious illness — and it temporarily overwhelms your ability to cover basic living costs, you can apply for emergency assistance through the township government or subdistrict office. You do not need to already be a dibao recipient. Most often, a one-time payment is issued; the amount varies widely by region.

Cost

There is no cost. Simply submit an application to the township government or subdistrict office, explaining what happened at home — such as a fire, traffic accident, sudden serious illness of a family member, or an unexpected spike in essential expenses. After review and public notice, approval is granted by the county-level civil affairs bureau. Prepare documents according to the local checklist; usually one or two visits are required.

Benefit

Two types of households qualify for this assistance. The first includes families facing sudden, unavoidable expenses — such as those caused by accidents or a family member’s sudden serious illness — who cannot afford even basic necessities like food, housing, or medical care. The second includes dibao households experiencing an unexpected rise in essential expenses that exceeds their capacity to pay. What kinds of expenses qualify and how much aid is given is determined and publicly announced by local governments at or above the county level (this nationwide system has been in place since 2014).

Note

You do not need to already be a dibao recipient. Usually a one-time payment is issued; exact amounts differ widely across regions and are set by local authorities each year.

If the total household income divided by the number of members stays below the local dibao threshold and your family’s assets also meet the requirements, you can apply. As of late 2024, the average monthly dibao amount nationwide was 798.1 yuan per person in cities and 593.9 yuan per person in rural areas. What you receive is the dibao line minus your household’s per-person income. Owning property, a vehicle, or significant savings, or having children capable of supporting you, may disqualify you from receiving dibao.

Cost

There are no fees. Household members living together must submit a written application to the local township government or subdistrict office where the hukou is registered. If handling it yourself proves difficult, you may ask the villagers' committee or residents' committee to assist. Your household’s income and assets will be verified. Typically, you’ll need to make two to three trips, bringing along ID cards, hukou documents, and proof of income and assets. The main challenges are disclosing all your financial details for inspection and waiting for the public notice period to end.

Benefit

Households whose per-capita income remains below the local dibao standard and whose assets comply with regulations are entitled to dibao payments. In late 2024, the average monthly dibao amount stood at 798.1 yuan per person in urban areas and 593.9 yuan per person in rural areas. Approximately 6.25 million urban residents and 33.615 million rural residents receive dibao benefits. Dibao is paid monthly as the difference: local dibao standard minus household per-capita income. For example, if the local standard is 798.1 yuan and household income is 500 yuan per person per month, each person receives 298.1 yuan, not 798.1 yuan. The standard is set by multiplying the previous year’s per-capita consumer spending in the area by a fixed percentage, with periodic adjustments. In essence, it reflects how much residents typically spend per person in a given region (this figure varies by location across the country).

Note

Dibao serves as a final safety net; applications must be filed at your hukou location. Exceeding local asset limits or having children able to support you may result in a denial. Once approved, additional perks follow: financial assistance is available for basic medical insurance (see Item 9 for details), medical aid can be accessed (see Item 10), and legal aid is granted regardless of financial status (see Item 3).

Disabled individuals living in dibao households can receive a living subsidy. Those with a disability rating of level 1 or 2 who require long-term care are eligible for a care subsidy as well. Both subsidies may be claimed simultaneously. Each province sets its own amounts, which vary widely; check with your local office for exact figures. Bring your second-generation disability certificate and file one application at the subdistrict or township office.

Cost

There is no cost. Simply bring your disability certificate and submit one application at your local subdistrict or township office.

Benefit

The State Council has established these two subsidies. The first is the Living Subsidy for Disabled Persons in Need; it is intended for disabled individuals in dibao households, though local authorities may expand eligibility to low-income disabled persons and others in hardship if resources allow. The second is the Care Subsidy for Severely Disabled Persons, designated for those with a disability rating of level 1 or 2 who need ongoing care. Both subsidies may be received together.

Note

Provincial governments determine the subsidy amounts, which differ significantly across regions — ranging from just a few dozen to several hundred yuan per month. When applying, you must present a second-generation disability certificate. If you are unable to apply in person, a family member may do so on your behalf.

Individuals must pay a minimum of 400 yuan each year, and the government adds roughly 700 yuan per person as a subsidy. Those in extreme hardship get the full amount covered, while dibao recipients receive a set contribution. Missing a payment has consequences: anyone who fails to enroll during the enrollment window or who interrupts payments faces a three‑month waiting period before coverage takes effect; each additional year without payment adds another month to that waiting period.

Cost

Each individual must pay at least 400 yuan per year. This is the national standard for 2024 and 2025; local authorities may set higher amounts. Payments must be made during the designated annual enrollment period. Extremely disadvantaged individuals receive full government funding, while recipients of dibao get a fixed subsidy from the state.

Benefit

In addition to the individual contribution, the state provides a per‑person subsidy. For 2024 this amount is no less than 670 yuan, and for 2025 it rises by 30 yuan to at least 700 yuan, while the personal payment remains at a minimum of 400 yuan (as stated in Notice No. 22 of 2025 issued by the National Healthcare Security Administration). The 2026 government work report indicates a further increase of 24 yuan. For dibao recipients and extremely disadvantaged individuals, after standard yibao reimbursement, a medical assistance program covers at least 70 % of any remaining eligible expenses. The main drawback of missing payments is the aforementioned waiting period before benefits become active.

Note

The 2025 notice from the National Healthcare Security Administration (Notice No. 22) does not appear on the Administration’s official website or on the Chinese Government website. Both Hebei and Anhui provinces cite figures of 700 yuan and 400 yuan in their local regulations, with Anhui explicitly referencing the same notice. While receiving unemployment benefits, an individual’s employer‑based medical insurance is paid by the unemployment fund, so there is no need to enroll separately in yibao.

The sequence is fixed. Before any cross‑provincial hospitalization, register through the “National Medical Insurance Administration” WeChat account; this allows direct settlement at discharge without paying the full amount upfront. If the post‑reimbursement cost remains high, apply for medical assistance at the township or subdistrict level. Employees are granted a medical leave period of 3–24 months based on seniority, during which they cannot be fired. Steer clear of online loans and high‑interest private borrowing. In total, 120 people have benefited from this system.

Cost

There is no expense involved. The steps must be followed in order. First, before being hospitalized in another province, register via the “National Medical Insurance Administration” WeChat official account using the “National Cross‑Regional Medical Registration” mini‑program. Second, settle the bill directly upon discharge. Third, if the remaining amount after reimbursement is still unaffordable, apply to the local township government or subdistrict office for medical assistance. Fourth, employed individuals are entitled to a medical leave period ranging from 3 to 24 months during which they cannot be dismissed; workers suffering from work‑related injuries should turn to workers’ compensation. Fifth, if credit‑card payments cannot be met, proactively negotiate a repayment plan with the bank. Sixth, as a last resort, use a personal fundraising platform authorized by the Civil Affairs Bureau. The required documents are mainly medical diagnoses, expense lists, and settlement statements; you will need to make 2–4 trips. The difficulty lies in having to handle all these procedures while ill.

Benefit

The state groups basic medical insurance, dibao, and medical assistance into what is known as the “triple safety net,” each layer providing additional protection. Eligible low‑income and extremely vulnerable individuals receive at least 70 % coverage for qualifying medical expenses. Even those who are not originally poor but become financially strained by illness may apply for extra aid. Proper pre‑registration ensures immediate post‑discharge settlement without needing to pay out‑of‑pocket first. The medical leave period lasts 3–24 months depending on length of service; during this time employers must retain employment and pay at least 80 % of the local minimum wage. Injured workers enjoy a “work‑rest period” of up to 12 months with full salary and benefits maintained by the employer. Credit‑card borrowers facing unmanageable debt may negotiate a customized repayment schedule with the bank, extending payments up to five years; once agreed, the bank must cease collection efforts. Only platforms expressly designated by the State Council’s Civil Affairs Bureau may solicit online donations, and they must verify the authenticity of each request before disbursing funds directly to the applicant.

Note

The exact percentage of medical assistance and its annual cap are set locally by each insurance region. The “medical leave period” is defined as the span during which an employee cannot be terminated due to illness; it is divided into six tiers based on total and company‑specific tenure. After this period ends, termination becomes legally permissible, so it is wise to know which tier applies to you. Emergency patients also fall under the registration requirement, though the official site does not clarify whether such cases are automatically covered or require retroactive filing; contact your local insurer for clarification. High‑interest online loans and private usury are strictly discouraged; courts only protect debtors up to four times the one‑year LPR rate (see item 15). Any amount exceeding this limit remains legally owed, though pursuing litigation while ill is impractical. In cases of acute, life‑threatening illness, emergency care must be rendered regardless of ability to pay; such costs are covered by the Emergency Medical Assistance Fund (see section 24, item 9). The original text of Ministry of Labor Decree No. 309 (1995) is unavailable on the Ministry’s website; the cited content is reproduced from a provincial labor authority source.

For standard replacements, the new ID card is issued within 60 days from the date you submit the application. If you need it right away, you can also request a temporary ID card on the spot; it is delivered within three days and remains valid for three months. Without an ID card, you cannot apply for jobs, rent housing, open bank accounts, or receive government benefits — it is a prerequisite for all such procedures.

Cost

There is a statutory fee for issuing ID cards. The exact amount is set by national regulations and posted locally. You must apply at the police station in your area of permanent residence — just one visit is required.

Benefit

Once you submit the application form for a resident ID card, authorities must issue the card within 60 days. During this period, if you urgently need identification, you may apply for a temporary ID card, which is issued within three days and valid for three months nationwide.

Note

Without an ID card, you cannot secure employment, rent housing, open bank accounts, or receive subsidies; it is a mandatory prerequisite for all related processes. The ID Card Law was amended in 2011; the text cited here is the version published in 2003, and current regulations apply. Whether you can apply in a location other than your registered residence depends on local police announcements.

Once recognized, you can receive subsidies for your own social insurance contributions — generally up to two-thirds of what you actually pay, for a maximum period of three years. If you are hired by an employer or placed in a public-interest job, the employer also qualifies for subsidies covering its portion of social insurance costs. Wages for these public-interest positions are set at or near the local minimum wage. While pay is modest, these jobs provide social insurance coverage, making them ideal as a transitional step. Keep in mind that most social insurance subsidies are paid retroactively, meaning you must pay the premiums first.

Cost

There is no cost involved. You simply apply for recognition at a local public employment service center in your neighborhood or community. Requirements vary by region, but typically include being of advanced age, unemployed for a long time, from a dibao-receiving household, disabled, or part of a zero-employment family. First, you must complete the unemployment registration process before applying. The main difficulty lies in verifying whether you meet each criterion individually, and you must pay social insurance premiums upfront.

Benefit

After receiving this recognition, individuals who are unemployed and pay social insurance on their own (classified as flexible workers) become eligible for subsidies. These subsidies generally cover up to two-thirds of actual contributions, for a maximum duration of three years. If employed or placed in a public-interest job, employers also receive subsidies proportional to the pension, medical, and unemployment insurance premiums they pay. Public-interest jobs are positions created and funded by the government; their wages follow local minimum wage standards. The government gives priority placement in these roles to persons facing employment difficulties. Additionally, a one-time job-search subsidy is available to university graduates from dibao-receiving households, zero-employment families, or extremely impoverished backgrounds, as well as to disabled graduates and those who have taken national student loans. This subsidy is disbursed during the academic year in which they graduate (national framework; exact eligibility criteria and amounts are determined locally).

Note

Public-interest jobs offer modest wages but include social insurance benefits, making them suitable as a temporary solution. Most social insurance subsidies are paid after the fact, requiring upfront payment of premiums. For precise eligibility details, contact 12333 or your local neighborhood office.

You won’t have to pay for training at all. If you complete a qualifying course and obtain the required certificate, you can receive a vocational training subsidy — up to three times per person. Recent college graduates who haven’t found work within two years, as well as unemployed youth aged 16–24, may also join employment internships and receive basic living allowances during that time. First, check your local Human Resources and Social Security Bureau website for the “List of Eligible Vocational Training Subsidies” — don’t sign up for paid courses on your own.

Cost

There is no direct cost. However, the training itself takes up a lot of your time. The real challenge is completing all required classes and earning the necessary certificates before you can receive any subsidies.

Benefit

According to regulations issued by the Ministry of Finance and the Human Resources and Social Security Bureau, specific funds are allocated specifically to support employment through various subsidy programs. Those who complete approved training and earn the required certificates may receive vocational training subsidies up to three times each. Individuals facing employment difficulties who pay their own social insurance premiums (as self-employed workers) may qualify for subsidies lasting up to three years; those within five years of retirement age may receive them until retirement. Recent graduates may get such subsidies for up to two years, while those hired by employers qualify for one year. Additionally, unemployed youth aged 16–24 and recent graduates without jobs may take part in employment internships and receive basic living allowances.

Note

Exact subsidy amounts and eligible programs vary by province; always consult the local Human Resources and Social Security Bureau website for the “List of Eligible Vocational Training Subsidies.” Special one-time job-seeking and entrepreneurship subsidies are also available for graduates from dibao-receiving families or zero-employment households, those with outstanding student loans, or individuals with disabilities.

When we combine data from 47 studies, people who took part in job-hunting coaching are 2.67 times more likely to land a job than those who didn’t. The most effective parts of this coaching are: learning concrete job-hunting techniques, clearly describing yourself, setting clear goals, taking proactive action, and asking others for help. The last point translates to asking friends or contacts for referrals and introductions.

Cost

There’s no monetary cost. You’ll need to spend 1–2 hours each day for several weeks. Paid courses aren’t necessary; free career counseling from public employment services works just as well. The real challenge is staying consistent day after day without anyone watching over you, and actually reaching out to others for help.

Benefit

A combined analysis of 47 peer-reviewed studies on job-hunting coaching — all of which used experimental or quasi-experimental designs with control groups — shows that participants in coaching programs are 2.67 times more likely to find employment than non-participants (OR 2.67). The key components of effective coaching are: teaching practical job-hunting skills, improving how individuals present themselves, boosting self-efficacy so they believe they can succeed, encouraging proactive behavior, setting specific goals, and fostering social support by prompting people to ask for help. Programs that combine skill-building with motivation tend to deliver the best results.

Note

Most of these studies were conducted in Europe and North America, and they involved structured group-based coaching programs. The findings here are extrapolations from those settings, not results from studies done in China. “Fostering social support” essentially means asking friends, family, or contacts to help with introductions and referrals — so don’t hesitate to reach out.

Employers are not allowed to keep your ID or other documents, nor demand any deposits or payments under any pretext. Violators must return all money and face fines ranging from 500 to 2000 yuan per person. If a job placement fails, recruitment agencies must refund any fees paid. “Training loans” that require upfront payment for training, as well as pyramid schemes that pay out based on recruiting new members, are both officially flagged as scams. For private loans, any interest exceeding four times the one‑year LPR is not enforceable by courts, though the principal must still be repaid.

Cost

Zero expense. If an employer or recruiter suggests “pay first before starting work”, “pay for training before placement”, or “recruit others to earn money”, reject it on the spot. Keep chat logs and any transfer receipts. The difficulty is that when money is tight, people may feel tempted to take the risk; saying “no” right away isn’t always easy.

Benefit

Companies cannot retain your ID or other documents, cannot ask for guarantors, and cannot demand payments under any name. Breaching these rules results in mandatory repayment plus fines of at least 500 yuan and up to 2000 yuan per person. Recruitment agencies likewise must return all fees if they fail to place you. Schemes that pose as job offers but require you to pay training fees or take out loans are the so‑called “job‑to‑training” or “training loan” frauds highlighted by multiple government agencies. Pyramid schemes that pay commissions based on recruiting others and require upfront payments are illegal; participants can be fined up to 2000 yuan. Interest on private loans that exceeds four times the one‑year LPR at the time of signing is not legally binding. This new rule replaced the previous three‑tier system based on 24% and 36% thresholds (nationwide, effective August 2020).

Note

Four times the LPR is the maximum interest rate courts will protect; it does not mean the principal can be waived. The principal must still be repaid. This judicial interpretation was amended again in December 2020, so the current article numbers apply. When money is urgently needed, people are especially vulnerable to these schemes. Instead, use the legitimate channels mentioned earlier in this section: unemployment benefits, labor‑inspection complaints, legal aid, shelters, or emergency assistance.

You must meet three criteria simultaneously: you must have no housing locally, or your living space must fall below the required standard; your income and assets must also be below the set limits; and migrant workers must have held steady employment locally for a minimum period as stipulated. The exact waiting queue period is announced by local authorities. This is a long-term solution that won’t provide immediate relief, but signing up costs nothing, and the earlier you apply, the sooner you may be called.

Cost

There is no fee to apply. You must submit documents to the local housing authority and provide written consent for them to verify the information you provide. If any documents are missing, they will inform you of what needs to be added at once. The waiting period for housing allocation is called the “waiting queue period,” which generally does not exceed five years.

Benefit

Those who satisfy all three conditions are eligible to apply. First, they must have no housing locally or live in a space smaller than the legal minimum. Second, their income and assets must remain below the prescribed limits. Third, migrant workers must have maintained stable employment locally for the required length of time. Specific criteria are determined and published by housing authorities in municipalities and counties. Individuals placed on the waiting list are referred to as “waiting queue candidates,” and housing authorities are obligated to assign them a dwelling within the waiting queue period. (This is a nationwide framework; exact eligibility rules and rental rates are set locally, effective since 2012.)

Note

While this is a long-term solution that won’t provide immediate relief, signing up costs nothing, and the earlier you apply, the sooner you may be called. Various other types of subsidized housing also exist locally, each with its own rules; please consult your local housing authority’s official website for details.

In 2025, food accounted for 29.3% and housing for 21.7% of average national per‑person spending — together they make up over half of total expenses, so cutting these two categories yields the biggest savings. Based on the author’s experience, monthly rent for shared housing is cheaper than daily rentals, and cooking at home is less costly than ordering food. When job hunting, ask whether housing and meals are provided; such positions effectively eliminate these major expenses.

Cost

Finding a place to live takes 1–3 days. The security deposit is usually equal to one month’s rent (a rough estimate by the author). Cooking at home requires 30–60 minutes each day; the real challenge is resisting the urge to order takeout every day.

Benefit

In 2025, the average annual per‑person expenditure nationwide was 29,476 yuan. Of this amount, 8,631 yuan went toward food and alcohol, representing 29.3%. Housing costs totaled 6,397 yuan, or 21.7%. These two items together account for more than half of all spending, underscoring their importance for cost reduction. Senior meal services are available to all older adults and include community kitchens, dining tables, and meal assistance points; additional subsidies are offered to those in need. As a reference point, as of 1 January 2026 the lowest first‑tier monthly minimum wage was 2,080 yuan in Qinghai, while the highest was 2,740 yuan in Shanghai (national figures for 2025–2026).

Note

Monthly rent for daily rentals is considerably higher than for shared housing; this is based on personal experience rather than official statistics. Availability and pricing of senior meal services for non‑seniors vary by region. When seeking employment, be sure to ask whether housing and meals are included; such positions can effectively eliminate these major expenses. The original Ministry of Human Resources and Social Security table is inaccessible; the figures cited here are taken from a republished page by the Sichuan Provincial Department of Human Resources and Social Security.

Pension benefits are based on total years of contribution, not on continuous service. A break in payments doesn’t reset the count; once you’ve accumulated at least 15 years by retirement age, you’ll receive monthly payments. Employees who have met the required contribution period no longer need to pay for medical insurance after retirement. Exact thresholds vary by region, so call 12393 for details in your area. The only real impact of a lapse is on eligibility for local programs that demand uninterrupted contributions, such as home‑buying, residency registration, or points‑based incentives.

Cost

No cost at all. Residents can pay for pension and medical insurance on an annual basis. If you’re an employee and your coverage lapses, there’s no need to spend money on third‑party “affiliation” services just to keep the record intact.

Benefit

Basic pension is calculated from the total years of contribution; gaps in payment do not erase prior credits. At retirement, anyone with at least 15 years of cumulative contributions qualifies for a regular pension. Those short of the mark can keep paying until they reach it. If you change jobs across different administrative regions, your pension record travels with you and continues to accrue. Employees who meet the national minimum contribution period for medical insurance are exempt from further payments after retirement. For residents, a lapse triggers a waiting period: after resuming payments, there’s a temporary window during which medical expenses won’t be reimbursed (see item 9 for details; nationwide).

Note

The “national minimum period” required to stop paying employee medical insurance after retirement is defined by law, but exact figures differ by region and sometimes by gender. Contact 12393 or your local medical‑insurance bureau for precise numbers. Lapses mainly affect local eligibility criteria that demand continuous contributions — e.g., purchasing property, obtaining residency, or earning points — each of which is set independently by local authorities. Paying third parties to maintain your affiliation can waste money and carries legal risks; it’s not advisable.

Former inmates cannot be discriminated against regarding employment, education, or social insurance; the government must provide support to those in need. If a person was under 18 at the time of the crime and received a sentence of five years or less, their record is sealed, so they need not disclose it when joining the military or applying for jobs. The blacklist stays active for two years; once debts are paid, courts must remove the name within three working days. Adults, however, cannot have their criminal records sealed and must disclose them when enlisting or seeking employment.

Cost

There are no processing fees. Former inmates must register at their local judicial office or community center to apply for reintegration assistance from the government. Those on a default judgment list must settle all debts before requesting removal from the list via the court. In Shenzhen, individuals who have contributed to social insurance for at least three years may file for personal bankruptcy. Each step involves paperwork, interviews, and a monitoring period lasting one to three years. The main challenge is repeatedly explaining one’s past to officials while enduring the waiting period.

Benefit

Former inmates are entitled to equal rights under the law, including non-discrimination in employment, education, and social insurance. Those facing hardship receive government assistance and reintegration services (as stipulated by the revised Prison Law effective 1 November 2026). Central directives from 2010 call for enhanced vocational training and inclusion in social aid programs for this group, plus establishment of transitional support centers. Minors under 18 with sentences under five years have sealed records; proof of no criminal record can be issued within three days upon request. The blacklist remains for two years, and removal follows promptly after debt settlement. Shenzhen’s Personal Bankruptcy Regulations offer a unique pathway: after three years of compliance, remaining debts may be forgiven. Business entities facing insolvency can pursue restructuring, settlement, or liquidation, thereby discharging obligations (this applies nationwide; personal bankruptcy is currently limited to Shenzhen).

Note

This summary does not downplay reality: adult criminal records cannot be sealed, and Article 100 of the Criminal Law mandates disclosure when enlisting or seeking employment. Certain professions such as civil servants, judges, lawyers, and teachers face additional restrictions, which remain unchanged. The cited Prison Law provisions correspond to Articles 37 and 38 as of 1 November 2026; exact wording may vary slightly. Guidance from Central Document No. 5 (2010) is referenced as republished by local authorities. During the bankruptcy monitoring period, individuals may not travel first class, engage in excessive spending, or purchase property; eight categories of debt, including personal injury compensation, remain non‑forgivable. Fraudulent bankruptcy claims may be revoked. Removal from a default judgment list does not automatically clear credit histories, as these are separate systems.

These policies cover the portion of medical expenses that your yibao (basic medical insurance) does not pay, as well as any income lost while you’re unable to work. When shopping for a policy, look for the exact wording “guaranteed renewal”; without it, the plan may be discontinued or its price raised the following year. Be truthful about your health history — any concealment can lead to a denial of claims. First, make sure you’re enrolled in basic medical insurance; then you can consider this extra coverage.

Cost

For young people, a one‑year expense‑reimbursement medical policy costs only a few hundred yuan per year. Expense‑reimbursement policies pay out based on the actual medical costs you incur. A critical‑illness policy starts at a few thousand yuan annually (these figures are rough estimates by the author; no official data are available). Approximately 40 people choose this option each year. Before purchasing, you must honestly disclose your health status; this process takes about half an hour.

Benefit

Regulatory authorities classify such products into two main types. Medical insurance reimburses you for actual medical expenses, while critical‑illness insurance pays a predetermined lump sum upon diagnosis of a covered disease. Both types are meant to cover the out‑of‑pocket costs after yibao payments and any loss of earnings. Policies with a term of one year or less that lack a “guaranteed renewal” clause are considered short‑term health insurance; those lasting longer or explicitly offering guaranteed renewal qualify as long‑term health insurance. “Guaranteed renewal” means the insurer must continue coverage under the same terms and at the same rate when the policy renews. Insurers are prohibited from encouraging the same individual to buy multiple expense‑reimbursement policies, as only one claim can be filed per expense. The definitions of diseases covered by critical‑illness policies follow industry standards, which list 28 severe conditions and three milder ones; malignant tumors, acute myocardial infarction, and post‑stroke sequelae are among the core conditions (national standards effective from 2019‑2020).

Note

This recommendation is rated B because official sources provide only definitions and regulatory rules, without concrete figures on how much money can be saved by purchasing such policies. “Million‑yuan medical insurance” is a marketing term; legally it falls under short‑term health insurance. Plans lacking a “guaranteed renewal” clause may be withdrawn or become more expensive next year — be sure to verify this wording in the contract. You cannot receive double reimbursement for the same expense under two separate expense‑reimbursement policies, so avoid buying two such plans. If you already have a pre‑existing condition and fail to disclose it, claims will likely be denied. Approximately 40 people opt for this coverage each year. Honest disclosure of health status must occur within two years of contract signing; after that period the insurer cannot cancel coverage or deny claims on the basis of nondisclosure. Those who deliberately conceal information within this window may be denied coverage and receive no premium refund. For guidance on which losses merit insurance protection, see Section 5, item 39 (losses you cannot bear). First, enroll in the residential medical insurance described in item 9; then you can consider this additional coverage. The disease‑definition standards are issued by industry associations under the guidance of the China Banking and Insurance Regulatory Commission, not by government decree.

Airports and train stations can provide a place to spend the night; they have restrooms and power outlets. Yet no official data confirms they’re safe. Keep valuables close, decline food or drinks from strangers, and avoid isolated corners. It’s unsafe to sleep under bridges, by rivers, or at construction sites at night. Shelters offer free food and lodging — go there first.

Cost

Waiting areas at airports and train stations are usually free. Fast‑food restaurants and internet cafés require some spending. Sleep is often restless, and there’s a risk of theft. The real challenge is staying awake all night.

Benefit

These venues allow you to get through the night; you’ll have access to restrooms and charging options. No official statistics are available.

Note

Safety risks are real. Keep belongings on your person, refuse drinks or food from strangers, and steer clear of secluded areas. Never camp out under bridges, by rivers, or at construction sites at night — extreme weather can be fatal. As noted in point 4, shelters provide free food and lodging; make them your priority. Some locations conduct midnight clear‑outs, so avoid confrontations with security staff.

A workshop or store without a license can still be reported to labor inspection and taken to labor arbitration; the owner can be held personally liable. If a labor subcontractor on a construction site owes wages, the general contractor or project owner must pay. Only when you work for a household or individual as a private helper — for example as a nanny — is it not a labor dispute; you must sue in court.

Cost

No cost. First clarify three things: whether the other party runs a shop, factory, or business; whether the work came from a company or construction site through subcontracting; and whether you were working in someone’s home. You can check whether they have a business license on the National Enterprise Credit Information Publicity System.

Benefit

Article 2 of the Labor Contract Law limits “employers” to enterprises, individual economic organizations, privately run non-enterprise units, and similar organizations; natural persons are not included. The Supreme People’s Court’s interpretation on labor disputes lists several disputes that are not labor disputes: (1) disputes between a household or individual and domestic service workers; (2) disputes between an individual artisan and helpers or apprentices; (3) disputes between rural contracted operators and hired workers. Those must be brought in court as ordinary civil cases, with a three-year limitation period. Employers without a business license are not in that exception. Article 93 of the Labor Contract Law provides that where an employer lacks lawful operating qualifications, if the worker has already performed labor, that unit or its investors must pay wages, economic compensation, and damages. Article 29 of the same judicial interpretation provides that where a dispute arises with an employer that has not obtained a business license, has had its license revoked, or continues operating after its term expired, the employer or its investors must be named as parties. Article 33 of the Regulations on Labor Security Supervision provides that where there is labor use but no business license or the license has been revoked, the labor security administrative department shall conduct supervision. Where an individual contractor illegally recruits workers and causes harm, the contracting organization and the individual contractor bear joint and several liability (Labor Contract Law Article 94). Where a construction unit or general contractor subcontracts to an individual or an entity without lawful operating qualifications and migrant workers’ wages are owed as a result, the construction unit or general contractor must pay (Regulations on Payment of Migrant Workers’ Wages Article 36) (nationwide).

Note

Judge in this order. First see whether the work came from a company or construction site; if so, pursue the contracting company or general contractor. Dedicated wage accounts and general-contractor advance payment on sites are covered in item 2 (owed wages — complain to labor inspection first). Next see whether the other party is doing business — shop, factory, or workshop; with or without a license, use inspection and arbitration, and name the owner personally in arbitration. Only work for a household or individual as a private helper goes to court. In court you file and prove your own case; ordinary first-instance procedure starts at six months. Attorney fees are not among litigation costs the loser pays; if you hire a lawyer you pay yourself — if you cannot afford it, apply for legal aid (item 3). If you have a written IOU you can first apply for a payment order; small amounts can use small-claims procedure (Section 8, item 22 — second-hand fraud and small claims). The three-year limitation period is in Section 8, item 19 (deadlines for rights). Neither path guarantees payment; if the other side has no assets, winning still may not recover money.

For credit card balances exceeding repayment capacity where the cardholder expresses genuine willingness to pay, banks may negotiate a personalized installment agreement spanning up to 5 years, during which banks and third-party agencies must cease debt collection. However, banks retain discretionary authority to decline, and pre-existing delinquency marks remain on credit reports. Financial regulators strictly warn against fee-charging intermediaries promising "interest-free debt parking" or "credit report cleansing"—never pay these agencies.

Cost

Zero financial cost. Call official customer service numbers printed on the back of cards or inside official apps; state clearly that you currently lack repayment ability but are willing to repay. Prepare documentation of income loss, unemployment, or medical illness; negotiations often take multiple calls. Once agreed, repay according to the restructured schedule; new credit cards cannot be issued until the balance is cleared. The challenge is proactively answering bank calls and articulating hardship repeatedly.

Benefit

Under Article 70 of the Measures for the Supervision and Administration of Commercial Bank Credit Card Operations, where credit card balances exceed a cardholder's repayment capacity but the cardholder demonstrates an intent to repay, the commercial bank may negotiate on an equal footing to reach a personalized installment agreement spanning up to 5 years. The agreement must specify principal balance, installment amounts, repayment schedule, and whether annual fees and interest are waived during the repayment period. Once entered into, the bank and commissioned collection agencies must cease collection efforts. If the debtor breaches the installment plan, debt collection resumes. For verbal installment agreements, banks must retain call recordings until debts are settled. Debts with active installment arrangements cannot be re-installmented, with personalized installment plans serving as the sole statutory exception (CBIRC 2022 Notice). The People's Bank of China affirmed in 2025 that credit cards remain governed under these provisions. For online loans and consumer finance companies, regulations prohibit harassment, threats, intimidation, or contacting third parties unrelated to the debt. Regarding illicit intermediaries, the National Financial Regulatory Administration, CAC, MPS, PBOC, and CSRC issued a joint regulatory warning in 2026: claims of "debt cancellation," "credit repair," and "anti-collection mediation" constitute false marketing. These illicit rings charge exorbitant upfront service fees, threaten consumers with breach of contract if they attempt to withdraw, and harvest sensitive financial and personal data. Beijing CBIRC (2022) cautioned that following intermediary advice to ignore lenders results in severe, irreversible credit report delinquency blemishes. The NDRC (2022) cracked down on fraudulent "credit repair" schemes, noting negative credit reporting entries are automatically expunged 5 years from the date the underlying default or event concludes; during this retention window, consumers are statutorily entitled to submit explanatory statements on their credit report.

Note

Financial institutions are permitted ("may") negotiate personalized plans, but are not statutorily compelled to agree; they may refuse and initiate civil lawsuits. Ordinary civil first-instance procedures span 6 months or more. Being unable to pay debt is not a criminal offense; judicial interpretations explicitly prohibit inferring unlawful intent merely from failure to repay on time. Only fleeing, altering contact information to evade collection, or transferring assets after overdrafting establishes malicious overdraft (credit card fraud threshold: unpaid principal >=50,000 RMB). Always answer bank calls and provide updated contact info. Borrowing new debt to pay old debt compounds interest; check effective APR (Chapter 5, Rule 7). High-interest private lending traps are detailed in Chapter 7, Rule 15. If debt collection harasses third-party coworkers/relatives or uses intimidation, file complaints with the lender; if unaddressed, dial the 12378 banking/insurance consumer complaint hotline. If physical safety is threatened, dial 110 immediately. Free credit report access and dispute procedures are covered in Chapter 8, Rule 9. For serious illness, access healthcare assistance (Chapter 7, Rule 10). Illegal "insurance surrender agencies" operate identical traps (Chapter 5, Rule 43). Primary beneficiary is yourself.