Why does the state require migrant workers to buy social endowment insurance?

According to the current regulations, the participation of urban and rural residents' endowment insurance (urban residents' social endowment insurance and new rural social endowment insurance) is not mandatory, and those who meet the conditions for participation are willing to participate.

Endowment insurance is a social insurance system in which the state establishes a pension fund through legislation to provide material assistance to workers who quit the labor field because of old age. The purpose of endowment insurance is to ensure that workers can have financial resources when they are old, so that they can have a sense of security when they are old, and it is also an important factor to ensure social harmony and stability. Therefore, the state requires enterprises and institutions to handle old-age insurance for employees through legislation. Article 3 of the Interim Regulations on the Collection and Payment of Social Insurance Fees clearly stipulates that the units that implement compulsory old-age insurance include "state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises and their employees, and institutions and their employees that implement enterprise management". For these units, they are obliged to pay endowment insurance premiums for their employees, and endowment insurance is compulsory, otherwise they will bear corresponding responsibilities according to law. At the same time, employees working in these enterprises are also obliged to participate in basic old-age insurance and pay their own old-age insurance premiums in accordance with the proportion stipulated by law.

Because China's economic development has not yet reached a very developed level, compulsory old-age insurance has not been required by all units, and not all wage-earners can require units to handle old-age insurance procedures for themselves. Even in some other economically developed countries, there is no example of old-age insurance covering the whole country. At the present stage of China's development, only those units involved in the above provisions apply for compulsory old-age insurance, and there is no compulsory provision for other units for the time being. For example, rural township enterprises and other units have not yet been forced to provide old-age insurance for their employees. Of course, although there is no mandatory provision in the law, these units can still take the initiative to handle old-age insurance for employees and solve the problem of pension payment.