ilo.org (30.09.2026) Expanding social security coverage in the informal economy: China's experience and lessons examines the approaches taken and challenges faced by China, Kenya and the Lao People’s Democratic Republic in developing social security systems, expanding coverage and strengthening digital administration. The report finds that the three countries face several common challenges. These include high levels of informal employment, complex employment relationships, limited capacity among some workers to contribute to social insurance schemes and relatively high participation costs of formal schemes. It identifies several elements of China's experience that may provide useful for other developing countries. These include taking steps to lower the threshold to participation for workers in the informal economy by combining contributory schemes with publicly financed or subsidized arrangements. The creation of more flexible participation pathways are highlighted to support those in flexible employment and new forms of employment. Unified service platforms, electronic credentials and online processing are also identified as being able to reduce costs and enhance efficiency.