Where does the part paid by the company of social security go

1. The part paid by the company will go to the part of the centralized fund.

The General Fund is a unified fund where all the social security contributions made by all the organizations in the region are pooled together.

2. Subsequent payments to each participant in accordance with the relevant regulations will also be made from this fund, the starting point of the fund also depends on the balance of income and expenditure in the region.

The ratio of social security contributions for units and individuals varies from province to city and region to region, with units paying more into the national pooled fund. The coordinated social fund refers to the remaining part of the insurance premiums paid by the employer for the employee, after deducting the personal account. The social co-ordinated fund belongs to all the insured persons and is centrally managed and uniformly transferred for use by the social insurance agency. The social insurance fund shall be specially stored and earmarked for specific purposes, and shall not be misappropriated by any unit or individual.

The basic old-age insurance fund has been gradually implemented at the national level, and other social insurance funds have been gradually implemented at the provincial level, with the specific time and steps being set by the State Council. The unit to pay part of the social security costs, will enter the national coordinated fund account, the insured workers in the fulfillment of certain conditions, the national coordinated fund will spend the fund, to those eligible to enjoy the benefits of the insured. For example, pensions, unemployment benefits, maternity allowances, etc. are all paid out of the national pooled fund.

1. Pension Insurance

Pension insurance is paid by both the organization and the individual***. There are two accounts for each employee's pension insurance, one for the centralized fund and the other for the individual account. The pension insurance paid by the unit should be transferred to the coordinated account according to the regulations, and only the part paid by the individual will be transferred to the individual pension insurance account.

China has a lifelong pension insurance system. Participants receive a monthly pension after retirement, first from the individual pension account, and after all the money in the individual account is received, the participant can continue to receive a pension from the integrated account, and the integrated account is the bulk of the pension. In addition, the integrated account is used to pay funeral expenses and pensions to the survivors of the insured.

2. Unemployment insurance

Under the load-shedding policy, the unemployment insurance unit contribution rate is 0.5%, and unemployment insurance is paid by both the unit and the individual***. Unemployment insurance has no personal account, the unit and individual part of the unemployment insurance premiums, all into the unemployment insurance fund. When a participant is unemployed and meets the conditions for claiming unemployment benefits, he or she can enjoy unemployment treatment. To a certain extent, to alleviate the economic pressure of the insured during the period of unemployment.

3. Workers' Compensation Insurance

The ratio of contributions to be paid by the unit for workers' compensation insurance is determined according to the nature of the unit, and workers' compensation insurance is paid in full by the unit. All the premiums paid by the organization will be paid into the state's industrial injury insurance fund. When an employee is injured at work, he or she will be entitled to work injury insurance treatment after being recognized as injured at work. Among them, those who have lost their ability to work after labor capacity appraisal can enjoy disability treatment. The vast majority of work-related injury insurance treatment is paid out of the Workers' Compensation Insurance Fund, which greatly reduces the economic pressure on enterprises and provides strong protection for workers.

4, medical insurance

Medical insurance by the unit and individual **** the same payment. There are also two accounts for each employee, one for the general fund and the other for the individual account. The part of medical insurance paid by the individual will be fully credited to the individual account. A certain percentage of the unit's contribution to the medical insurance will be transferred to the individual account.

Medical insurance personal account = individual medical insurance premiums + (unit medical insurance premiums x the proportion of the transfer) medical insurance unit contribution part of the proportion of the transfer to the personal account, and the participant's place of insurance, as well as the age of the participant has a relationship, the country's provinces and municipalities and regions are not the same.

5, maternity insurance

Maternity insurance has been merged with medical insurance, and the unit pays the full amount. All the maternity insurance paid by the unit goes into the medical insurance fund, and when the insured person gives birth or undergoes a family planning operation, and meets the conditions for maternity insurance treatment, he or she can enjoy maternity insurance treatment, which is paid out of the integrated fund. Maternity insurance benefits include maternity allowance and maternity medical expenses.

Participation in the basic pension insurance for employees, in addition to flexible employment is their own choice whether to participate in the pension insurance, such as units of employees, labor law and social insurance law stipulates that it is necessary to participate in the insurance, but there are employees themselves and the employer **** with the corresponding social insurance premiums.

Pension insurance contributions are paid by the employee as 8% of the individual contribution base and by the employer as 16% of the unit contribution base.

According to the Social Insurance Law, all the contributions made by the employee go into the individual account, while those made by the employer go into the integrated account.

According to the formula for calculating pensions, the pension entitlement resulting from participation in pension insurance mainly consists of two parts: the basic pension and the individual account pension.

Does the money in the integrated account only pay the basic pension? No, it is not. The money in the integrated account will be used to pay the basic pension, the individual account pension after the individual account of the pension insurance has been paid out, the transitional pension, the funeral grant and pension after the death of the insured person, the monthly pension paid to the survivors according to the previous funeral pension system, and some subsidies and benefits in accordance with the state regulations (such as winter heating costs).

According to the formula for calculating the benefits, the personal account pension is equal to the balance of the personal account of the pension insurance divided by the number of months of payment determined by the retirement age. Isn't it true that the personal account pension is paid out with money from the personal account? No, it is not.

The personal account of the pension insurance is a kind of account of bookkeeping, which is equivalent to a bank account. There is no money in the bank account, the money has already been taken by the bank to lend, pay the central bank's reserve fund or interbank deposits and other various purposes. The money in the bank account is just bookkeeping, the bank has enough cash to guarantee that individuals who have the need to withdraw or transfer money can realize the withdrawals or transfers, which will allow the people concerned to form a kind of illusion that there is money in the original bank account.

In case of a run on the bank, this situation would cause a credit collapse, and no money could be withdrawn if everyone went to withdraw money. This is also proof that there is just bookkeeping in the bank's personal accounts and not really money.

The same is actually true of individual pension accounts. According to the Statistical Bulletin on the Development of Human Resources and Social Security in 2021, the total income of China's basic pension insurance fund for employees in that year was 6,045.5 billion yuan. If the money in the personal account is really saved, at least 1/3 should go into the personal account, assuming 2 trillion. The amount of money that could have been used for the pension fund's expenses that year would have been $4 trillion.

Expenditures from the pension fund in 2021 will be $5,648.1 billion, well over $4 trillion. The cumulative balance of the pension fund is only $525.74 billion, which is practically nothing against the calendar year balance of individual accounts.

Legal basis:

Article 12 of the Social Insurance Law of the People's Republic of China

Employers shall pay basic pension insurance premiums in accordance with the state-regulated ratio of the total wage bill of their employees, which shall be credited to the basic pension insurance fund. Employees shall pay the basic pension insurance premiums in accordance with the proportion of their own wages prescribed by the State and credited to their individual accounts.