What is the principal and interest of social security?

Social security principal and interest refers to the principal paid by individuals when they pay social insurance premiums and the interest generated by these principals in social security funds.

I. Social security subjects

The principal of social security is mainly paid by individuals and units to build a social security system. The payment standard of social security principal is usually linked to the individual's salary income, and different social security projects (such as endowment insurance, medical insurance, unemployment insurance, etc.). ) There may be different payment ratios. These principals will be included in the social security fund to pay for future social security benefits.

Second, social security interests.

In the process of operation, the social security fund does not simply deposit the principal in the bank, but will invest and operate to maintain and increase the value of the fund. These investments may include buying government bonds, bank deposits, stocks, etc. Social security funds can obtain certain income, that is, interest, through investment and operation. This part of interest is also an important part of the social security fund, which is used to improve the level of social security benefits and ensure the sustainable development of the social security system.

The generation of social security interest is closely related to the investment and operation of social security funds. In order to ensure the security and stability of the fund, the investment operation of the social security fund needs to follow certain risk control and investment strategies. At the same time, the government will also supervise the investment and operation of social security funds to ensure their compliance and effectiveness.

Third, the role of social security principal and interest.

The isomorphism of social security principal and interest forms a social security fund, which provides a material basis for future social security benefits. By paying social security, individuals can provide security for their future pension and medical care; The emergence of social security benefits is helpful to improve the level of social security benefits and enhance the attractiveness of the social security system.

To sum up:

Social security principal and interest are important components of the social security system, which both provide protection for individuals' future. Individuals and units shall pay social security fees in full and on time to ensure the adequacy and stability of social security funds; At the same time, the government should also strengthen the investment operation and supervision of social security funds to ensure their safety and effectiveness.

Legal basis:

People's Republic of China (PRC) social insurance law

Article 12 stipulates:

The employing unit shall pay the basic old-age insurance premium according to the proportion of the total wages of its employees stipulated by the state, and record it in the basic old-age insurance pooling fund. Employees shall pay the basic old-age insurance premium in accordance with the proportion of wages stipulated by the state and record it in their personal accounts.

People's Republic of China (PRC) social insurance law

Article 64 provides that:

Social insurance funds include basic endowment insurance fund, basic medical insurance fund, industrial injury insurance fund, unemployment insurance fund and maternity insurance fund. All social insurance funds shall be accounted for according to the types of social insurance, and a unified national accounting system shall be implemented.

People's Republic of China (PRC) social insurance law

Article 69 provides that:

On the premise of ensuring safety, the social insurance fund shall be invested and operated in accordance with the provisions of the State Council to maintain and increase its value. Social insurance funds shall not be used for illegal investment and operation, for balancing other government budgets, for building or rebuilding office buildings, and for paying personnel expenses, operating expenses and management expenses, or for other purposes that violate laws and administrative regulations.