Which is more cost-effective, personal payment or company payment?

It is more cost-effective for individuals to pay endowment insurance and companies to pay it.

Individuals pay endowment insurance, and the usual payment ratio is 20%. When paying fees through the company, the proportion of employees' individual contributions is 8%, and the proportion of company contributions is 16%. Paying endowment insurance through the company has a light personal burden. The payment base may also be different. Units can pay social security according to the actual wages of employees, which may be higher than the base paid by individuals according to the minimum standard, so that they can get a higher pension after retirement. Paying endowment insurance through the company is more beneficial to employees economically.

Payment method of endowment insurance:

1. Individual contribution of endowment insurance: refers to the employee's individual contribution of endowment insurance premium to the social security institution according to the specified proportion;

2. The company pays endowment insurance: it means that the employer pays a certain proportion of endowment insurance premium for employees, which is usually higher than the proportion of individual contributions;

3. Individuals and companies * * * jointly pay: In most cases, the old-age insurance is jointly borne by individuals and companies * * *, and each pays according to the prescribed proportion;

4. Freelancers pay: Freelancers or flexible employees can choose to pay their own pension insurance premiums in full;

5. Other payment methods stipulated by the policy: According to the policies of different regions, there may be other payment methods or subsidy policies.

To sum up, it is more economical to pay endowment insurance through companies than individuals, because individuals only need to bear 8% of the contribution ratio, and companies bear 16%, and the contribution base is usually higher than the minimum standard paid by individuals, thus bringing lighter economic burden and higher retirement pension to employees.

Legal basis:

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

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The state establishes social insurance systems such as basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance, so as to guarantee citizens' right to receive material assistance from the state and society in accordance with the law when they are old, sick, injured, unemployed and have children.

Article 12

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. Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employing unit and other flexible employees who have participated in the basic old-age insurance shall pay the basic old-age insurance premiums in accordance with state regulations and record them in the basic old-age insurance pooling fund and individual accounts respectively.

Interim regulations on the collection and payment of social insurance premiums

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These Regulations apply to the collection and payment of basic old-age insurance premiums, basic medical insurance premiums and unemployment insurance premiums (hereinafter referred to as social insurance premiums).

The units and payers mentioned in these Regulations refer to the units and individuals that should pay social insurance premiums in accordance with relevant laws, administrative regulations and the provisions of the State Council.

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The collection scope of basic old-age insurance premiums: state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises and their employees, and institutions and their employees that implement enterprise management.

The collection scope of basic medical insurance premium: state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises and their employees, state organs and their employees, institutions and their employees, private non-enterprise units and their employees, social organizations and their full-time employees.

The collection scope of unemployment insurance premium: state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises and their employees, institutions and their employees.

The people's governments of provinces, autonomous regions and municipalities directly under the Central Government may, according to local actual conditions, stipulate that urban individual industrial and commercial households should be included in the basic old-age insurance and basic medical insurance coverage, and social organizations and their full-time staff, private non-enterprise units and their employees, and urban individual industrial and commercial households with employees and their employees should be included in the scope of unemployment insurance.

The payment base and rate of social insurance premiums shall be implemented in accordance with relevant laws, administrative regulations and the provisions of the State Council.

Article 15

Where the people's governments of provinces, autonomous regions and municipalities directly under the Central Government stipulate that social insurance premiums shall be collected by the tax authorities, the tax authorities shall provide the social insurance agencies with the payment information of the payment units and individuals in a timely manner; The social insurance agency shall collect relevant information and report to the administrative department of labor security.