Is it legal for the company to pay social security according to the minimum standard?

It is illegal for a company to pay social security according to the minimum standard.

It is illegal to pay social security according to the minimum base, and it should be paid in full according to the actual salary.

If the employer fails to pay the social insurance premium in full, the social insurance premium collection agency shall order it to make up within a time limit.

If the social insurance premium is overdue, the collection agency may apply to the relevant administrative department at or above the county level to make a decision on the allocation of social insurance premium, and notify its bank or other financial institution in writing to allocate social insurance premium. Paying social security according to the minimum standard has the following main effects on employees:

1. Pension reduction: If social security is paid according to the minimum standard, the total pension will be very low at retirement, and the monthly pension will be lower than that paid according to the normal standard.

2. Low treatment for work-related injuries: If the employer pays social security according to the minimum standard, once an employee has a work-related injury, the compensation will be calculated according to the payment wages declared by the employer for the employee, so that only a small amount of disability allowance can be obtained.

3. Personal income tax increase: From the perspective of personal income tax, it seems that the minimum payment base is greater than the full payment. But in fact, because personal income tax is the amount that should be paid after deducting all insurance, the tax paid is increased because some insurance deductions are less. Not only did individuals not get more wages, but their income actually decreased.

To sum up, paying social security according to the minimum standard may have an adverse impact on employees' pension, work injury treatment and personal income tax. Therefore, enterprises should pay social security in full according to employees' actual wages to protect employees' rights and interests.

Legal basis:

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

Article 60

The employing unit shall declare itself and pay social insurance premiums in full and on time, and shall not postpone or reduce the payment except for legal reasons such as force majeure.

The social insurance premiums that employees should pay shall be withheld and remitted by the employer, and the employer shall inform me of the details of paying social insurance premiums on a monthly basis.

Individual industrial and commercial households without employees, part-time employees who have not participated in social insurance in the employing units and other flexible employees can pay social insurance premiums directly to the social insurance premium collection agencies.