What are the advantages and disadvantages of enterprise annuity?

The advantages of enterprise annuity include providing retirement protection for employees, increasing the attractiveness of enterprises, improving the enthusiasm of employees and enjoying certain tax incentives. The disadvantages of enterprise annuity include increasing the operating cost of enterprises, increasing the pressure of individual payment and poor liquidity of funds. Details are as follows:

Benefits of enterprise annuity:

1, providing retirement protection for employees.

Enterprise annuity can provide stable retirement protection for employees. After employees retire, there are not only retirement pensions, but also enterprise annuity insurance supplements, so that employees can have a stable income after retirement without worrying about living expenses.

2. Increase the attractiveness of enterprises.

The establishment of enterprise annuity is equivalent to improving the welfare of employees, thus increasing the attractiveness of enterprises, which plays an important role in recruiting and retaining outstanding talents and is conducive to the sustainable development of enterprises.

3, improve the enthusiasm of employees.

Because the enterprise annuity is a long-term welfare plan provided by the enterprise for employees, it embodies that the interests of employees are tied together with the development of the enterprise, and employees will have a greater sense of belonging to the enterprise and their work enthusiasm will be improved.

4. Enjoy certain tax benefits.

In China, enterprise annuities can enjoy preferential tax policies. According to the Announcement on Supplementary Provisions on Individual Tax of Enterprise Annuity issued by State Taxation Administration of The People's Republic of China, the monthly tax rate of more than 3,000 yuan to12,000 yuan will be reduced by 10%. For the portion exceeding 12000 yuan to 25000 yuan, the tax rate is reduced by 20%, that is, 14 10 yuan; If it exceeds 80,000 yuan, the tax rate is 45%, that is, 15 160 yuan;

Disadvantages of enterprise annuity:

1 Increase the operating costs of enterprises.

The bulk of enterprise annuity is paid by enterprises, that is to say, in order to provide employees with such compound interest, enterprises have to pay a lot of costs. If they encounter economic recession or poor operating conditions, it may be difficult to bear this extra financial pressure.

2. Increase the pressure of individual payment.

In addition to the part paid by enterprises, employees themselves have to pay part of the money, which causes that if the salary of employees is not high and this part of the money is deducted from the salary, then the life pressure and payment pressure that individuals will face will be greater.

3. Poor liquidity of funds

Enterprise annuity needs fixed capital investment, and employees can only get the money after retirement, so they can't withdraw or lend it in advance, which leads to the inability to realize capital turnover through enterprise annuity when they need money urgently.