What's the difference between paying in the social security factory and paying by yourself?

What's the difference between paying in the social security factory and paying by yourself?

Social security can be paid by individuals themselves or by units. The difference between paying in the social security factory and paying by yourself is mainly reflected in the following aspects:

The proportion of payment is different: when individuals pay social security by themselves, they need to bear all the expenses, while the unit is paid by both units and individuals. Generally speaking, the unit will bear a large proportion of the cost.

Different payment bases: the payment base for individuals to pay social security by themselves is generally determined according to the local minimum wage standard or the actual income of individuals, and the payment base paid by units on their behalf is determined according to the total wages of employees.

Social security benefits are different: the social security benefits paid by individuals themselves are also different from those paid by companies. For example, in terms of endowment insurance, individuals may need to pay a certain number of years to enjoy pension benefits, and companies can calculate pension benefits according to the actual payment years and payment amount of employees. When the social insurance is paid by the factory, the factory will deduct the social insurance premium from the salary according to a certain proportion and pay the corresponding social insurance for the employees. Under this payment method, employees' social insurance contribution base is usually related to their salary base, so employees can get considerable pension and other social insurance benefits after retirement.

When social security is paid by individuals, individuals need to pay social insurance premiums to social security institutions themselves, generally in accordance with the prescribed proportion and base. In this case, individuals need to bear all the social insurance costs, so for some people with lower incomes, there may be some economic pressure.

To sum up, the main difference between the social security factory and itself lies in the payment ratio, payment base and social security benefits. Individuals can choose the payment method that suits them according to their own situation and needs.

Legal basis:

Article 10 of the Social Insurance Law of People's Republic of China (PRC) stipulates that employees should participate in the basic old-age insurance, and both employers and employees should pay the basic old-age insurance premium. Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employer and other flexible employees can participate in the basic old-age insurance, and individuals pay the basic old-age insurance premium.

Article 23 of the Social Insurance Law of People's Republic of China (PRC) stipulates that employees shall participate in basic medical insurance for employees, and employers and employees shall pay basic medical insurance premiums in accordance with state regulations. Individual industrial and commercial households without employees, part-time employees who have not participated in the basic medical insurance for employees and other flexible employees can participate in the basic medical insurance for employees, and individuals pay the basic medical insurance premium in accordance with state regulations.