Xiamen social security why cheap

The reason why Xiamen social security is cheap is because the local financial subsidies in each place are not the same, Xiamen social security in the past two years, financial subsidies, the introduction of a lot of policies to reduce the burden of social security on the enterprise, reduce the part of the financial subsidies to fill in the part of the financial subsidies.

Social insurance premiums are collected in the following ways:

1, proportional premium system. This method is based on the wage income of the insured, and a certain percentage is set so as to collect the insurance premiums. The main purpose of the original social insurance is to compensate the insured for the loss of income during the risky accidents in order to maintain their minimum living, so it is necessary to refer to the income on which they usually rely on, on the one hand, as a measure of the standard of payment, on the other hand, as the basis for the calculation of premiums. The greatest defect of the proportional premium system based on work is that the burden of social insurance is directly linked to wages. Whether the employer and employee both pay social insurance premiums or one of them pays social insurance premiums, the burden of social insurance is manifested in an increase in the cost of labor, which results in the crowding out of labor by capital and an increase in unemployment;

2. Equalization of the premium system. This means that the same amount of premiums is charged regardless of the income of the insured or his employer. This system has the advantage of simple calculation, easy to implement, and the use of this method of collecting insurance premiums in the country, in its payment, generally also adopts the equalization system, with the meaning of income and expenditure are equal. But its defect is that low-income people and high-income people pay the same premiums, in terms of affordability is obviously unfair.

Social security is divided into units and individuals to pay part of the specific social security contributions to pay the following ratios:

1, old-age insurance, units and individuals pay 20%, 8%;

2, medical insurance, units and individuals pay 12%, 2%;

3, unemployment insurance, units and individuals pay 2%, 1%;

4. Maternity insurance, the unit pays 0.60%, individuals do not pay;

5. Industrial injury insurance, the unit pays 2%, individuals do not pay.

Legal basis

The Chinese People's **** and the State Social Insurance Law

Article 5 The people's governments at or above the county level will incorporate the cause of social insurance into the planning of national economic and social development.

The State raises funds for social insurance through multiple channels. The people's governments at or above the county level give necessary financial support to the social insurance cause.

The State supports social insurance through preferential tax policies.