Major taxi companies in Guangzhou are introducing a system that allows drivers to be company employees rather than operate on a contractor basis.

Under the system, the taxi companies will help drivers pay their social security and medical insurance after the drivers become members of staff .

The drivers will not have to worry about the price of gas or other operational costs.

In addition to social security, medical insurance, welfare and benefits, drivers will be given a monthly salary, plus bonus.

More than half of the taxi drivers from Guangzhou Communication Group have signed contracts.

Guangzhou Communication Group, one of the major taxi companies in Guangzhou, has more than 6,000 taxi drivers. The rest are classified as contractors who have to pay their own social security, medical insurance and pay running costs.

An executive from the Guangzhou Communication Group said taxi drivers can choose to become staff drivers or continue to be contractors.

But some young drivers prefer to stay on their own.

Chen Yusheng, said the new system benefited some, especially those who have hukou.

Those outside the system, he said, might be able to make more money and return to their hometowns quicker.

Contact the writer at zhengcaixiong@chinadaily.com.cn