Is it legal to pay social security according to the minimum wage?

It is illegal for companies to pay social security according to the minimum wage standard, and employers pay work-related injury insurance premiums according to the total wages of their employees and the rates determined by social insurance agencies. Social insurance agencies shall determine the employer's payment rate according to the employer's use of work-related injury insurance funds, the incidence of work-related injuries and the level of industry rates.

The social security payment base of employees is generally determined by the average monthly salary of employees (or individual's salary last month) in the previous year. The higher the employee's salary, the higher the social security payment base will be.

(1) If the wage income of employees is higher than 300% of the local average wage of employees in the previous year, 300% of the local average wage of employees in the previous year will be used as the payment base;

(two) the wage income of employees is lower than 60% of the local average wage of employees in the previous year, with 60% of the local average wage of employees in the previous year as the payment base;

(3) If the salary of employees is between 300% and 60% of the average salary of employees in the previous year, it shall be truthfully declared. When it is impossible to determine the wage income of employees, the payment base shall be determined according to the local average wage of employees in the previous year published by the local labor administrative department.

Social security will regularly check the base every year (March or July, in different places), and declare a new base according to the average monthly salary of employees in the previous year. It is necessary to prepare proof of these payroll.

Legal basis:

Article 34 of the Social Insurance Law of People's Republic of China (PRC) stipulates that

The state determines the different rates of different industries according to the degree of industrial injury risk, and determines the rate grades of different industries according to the use of industrial injury insurance funds and the incidence of industrial injuries. Industry differential rates and intra-industry rates shall be formulated by the administrative department of social insurance of the State Council, and promulgated and implemented after being approved by the State Council.

Social insurance agencies shall determine the employer's payment rate according to the employer's use of work-related injury insurance funds, the incidence of work-related injuries and the level of industry rates.

Article 35 of the Social Insurance Law of People's Republic of China (PRC) stipulates that

The employer shall pay the work-related injury insurance premium according to the total wages of its employees and the rate determined by the social insurance agency.