What are the consequences of enterprises defaulting on social insurance?

Mainly has the following adverse consequences:

1. Before the arrears are paid, employees' personal social security cannot be transferred out or retired, and hospitalization and work-related injuries cannot be reimbursed, which is not conducive to employees' personal life.

2. When the unpaid social security is paid back, a certain percentage of late fees will be levied, which will cause the cost burden of the enterprise.

3. Employees can leave their jobs on this ground, get economic compensation according to law, and face fines and late payment fees from social security departments.

Extended data:

Social insurance:

Social insurance is a social and economic system that provides income or compensation for those who lose their ability to work, are temporarily unemployed or suffer losses due to health reasons. The main items of social insurance include endowment insurance, medical insurance, unemployment insurance, industrial injury insurance and maternity insurance.

The social insurance plan is organized by the government, forcing a certain group to use part of its income as social insurance tax (fee) to form a social insurance fund. Under certain conditions, the insured can get fixed income or loss compensation from the fund. It is a redistribution system, and its goal is to ensure the reproduction of material and labor and social stability.

In China, social insurance is an important part of the social security system, occupying a core position in the whole social security system. In addition, social insurance is a contributory social security. The funds are mainly paid by employers and workers themselves, and the government finances give subsidies and bear the ultimate responsibility. However, workers can only enjoy the corresponding social insurance benefits if they fulfill their statutory payment obligations and meet the statutory conditions.

References:

Baidu encyclopedia? social security