Are social security subsidies wages?

Social security subsidies do not belong to wages.

Social security expenses are the social insurance fund raising expenses shared by employers and employees, and do not belong to employees' wages. Wages mainly include hourly wages, piecework wages, bonuses, allowances, overtime wages and wages paid under special circumstances. The social insurance premium that the employer should pay for the workers according to law belongs to the statutory welfare expenditure, which aims to ensure that the workers get the necessary material help when they lose their ability to work or lose their jobs, and should not be included in the total wages of the workers. Therefore, social security expenses and wages and benefits are two different concepts. The former is a guarantee for the risks that workers may face in the future, and the latter is a direct reward for the work that workers have completed.

The nature and function of social security subsidies;

1, nature distinction: social security subsidy is usually a subsidy provided by the government to reduce the burden on enterprises, encourage employment or protect the welfare of specific groups, which is different from the wages earned by employees because of their work;

2. Policy orientation: Social security subsidies are often based on specific policy purposes, such as promoting employment, supporting small and micro enterprises, and helping vulnerable groups;

3. Source of funds: the funds for social security subsidies come from the government's social security fund or special funds, and wages come from the operating income of enterprises;

4. Payment conditions: The payment of social security subsidies usually needs to meet certain conditions, such as the scale of the enterprise, the number of employees and the nature of the industry. And the payment of wages is based on the remuneration agreed in the labor contract;

5. Legal effect: the payment of social security subsidies is mandatory and universal according to relevant laws, regulations and policies, while the payment of wages is based on labor law and labor contract.

To sum up, social security subsidies do not belong to wages, and social security expenses are the raising expenses of social insurance funds shared by employers and workers, which are two different concepts from wages and benefits.

Legal basis:

Provisions on the composition of total wages

Article 4

The total salary consists of the following six parts:

(1) hourly wages;

(2) piece rate;

(3) bonuses;

(4) Allowances and subsidies;

(5) Overtime pay;

(6) Wages paid under special circumstances.