Who should bear the interest generated by the social security retroactive payment

Who should bear the interest generated by the social security retroactive payment

According to Article 63 of the Social Insurance Law of the People's Republic of China, if the employer fails to pay the social insurance premiums in full and on time, the social insurance premium collection agency shall order the employer to pay the premiums by a certain period of time, or make up the full amount of social insurance premiums. If the employer fails to pay or replenish the social insurance premiums after the deadline, the social insurance premium collection agency may inquire with banks and other financial institutions about their deposit accounts; it may also apply to the relevant administrative department at or above the county level to make a decision on the allocation of social insurance premiums, and notify in writing the bank or other financial institution where the account is opened to allocate the social insurance premiums. If the balance of an employer's account is less than the amount of social insurance premiums that should be paid, the social insurance premium collection agency may require the employer to provide a guarantee and sign an agreement on deferring the payment of premiums.

In summary, the interest arising from the retroactive payment of social security shall be borne by the employer who fails to pay the social security in full and on time. According to Article 63 of the Social Insurance Law of the People's Republic of China, if the employer fails to pay the social insurance premiums in full and on time, the social insurance premium collection agency will order the employer to pay the premiums or make up the full amount by a specified date, and may require the employer to provide a guarantee or sign an agreement on deferring the payment of the premiums.

Legal basis:

Article 63 of the Social Insurance Law of the People's Republic of China: If an employer fails to pay social insurance premiums in full and on time, the social insurance premium collection agency will order it to pay the premiums by a certain date or make up the full amount. If the employer fails to pay the social insurance premiums in full or on time, the social insurance premium collection agency may inquire into the deposit accounts of banks and other financial institutions; it may also apply to the relevant administrative departments at or above the county level to make a decision on the allocation of social insurance premiums, and notify in writing the banks or other financial institutions with which the employer has accounts of the allocation of social insurance premiums. If the balance of the account of the employer is less than the social insurance premiums that should be paid, the social insurance premium collection agency may require the employer to provide a guarantee and sign an agreement on deferring the payment of premiums.