Pay the minimum wage still have to deduct social security

Substantiation, different places, some places in the minimum wage includes personal contributions to the five insurance and gold, while some places do not contain. Social security is deducted by the company from the individual's monthly salary, if the payable salary (salary before deducting social security) is not less than the local minimum wage standard is legal. After the employer withholds and pays the social insurance premiums in accordance with the law, the actual wage received by the worker may be lower than the local minimum wage. Of course, individual provinces, municipalities and autonomous regions, in order to strengthen the protection of workers, have made it clear in their local regulations that the minimum wage does not include the social insurance premiums and housing provident funds paid by individuals. Therefore, the question of whether the minimum wage includes social insurance premiums paid by individuals has to be determined in conjunction with local regulations.

Nationally, according to the Minimum Wage Regulations, three kinds of wages and benefits are excluded from the minimum wage standard, including:

1. Wages for extended working hours;

2. Allowances for special working environments and conditions, such as mid-shift, night-shift, high-temperature, low-temperature, underground, and poisonous and harmful conditions;

3. Workers' welfare benefits stipulated by laws, regulations and the state. Welfare benefits, etc.

See, it is not clear whether to exclude the five insurance and one gold. Therefore, the regulations on this are not consistent across the region. In most areas, the minimum wage is inclusive of the five insurance and one gold.

For example, in Hebei, it is clear that the items included in the minimum wage include hourly wages, piece-rate wages, performance wages, wages paid under special circumstances, etc., which are included in the total wage as stipulated by the state, and pension insurance, unemployment insurance, medical insurance and housing provident fund which should be paid by workers according to the regulations.

And the minimum wages in Beijing and Shanghai do not include five insurance and one gold. Beijing and Shanghai have clearly stipulated that the social insurance premiums and housing provident fund payable by individual workers shall not be regarded as part of the minimum wage, and shall be paid separately by the employers in accordance with the regulations. It can be seen that the minimum wage that does not include the five insurance premiums and housing fund is more golden.

The so-called minimum wage refers to the minimum labor remuneration that must be paid by the employer for the normal labor provided by the workers during the legal working hours. Enterprises cannot simply use it as a distribution system for their enterprises, let alone dividing the minimum wage rate into several parts and using one of them to calculate overtime pay. Enterprises with normal production and operation and good economic performance should all pay wages at a rate higher than the minimum wage. Therefore, the minimum wage does not include overtime and overtime pay, nor does it include allowances for mid-shift, night-shift, high temperature, low temperature, underground, poisonous and harmful, and other kinds of special working environment conditions.

Overtime and overtime wages are remuneration paid for labor performed by workers outside of the legal standard working hours and are not part of the minimum wage. The employer pays the workers' overtime and overtime wages as the minimum wage, which is a wrong understanding of the state's policy on the payment of wages and an infringement of the workers' labor rights and wage rights.

In order to avoid losses to workers due to improper payment of wages, employers should provide workers with a list of their individual wages in accordance with the wage payment regulations, setting out the items of wages paid, so that workers will know which of the wages and remuneration they receive are basic wages, which are bonuses and subsidies, and which are overtime and overtime wages, and to prevent the situation from arising where only the amount of wages provided to workers, while concealing the problem of paying them less than the minimum wage.

Legal basis

Minimum Wage Regulations

Article 5 Minimum wage standards generally take the form of monthly and hourly minimum wage standards. The monthly minimum wage standard applies to workers in full-time employment, and the hourly minimum wage standard applies to workers in part-time employment.

Article 6 The determination and adjustment of the monthly minimum wage standard shall be made with reference to such factors as the minimum cost of living for locally employed persons and their dependents, the consumer price index for urban residents, the social insurance premiums and housing provident funds paid by individual workers, the average wage of workers, the level of economic development, and the employment situation.

The determination and adjustment of the hourly minimum wage standard shall be based on the promulgated monthly minimum wage standard, taking into account the factors of basic pension insurance premiums and basic medical insurance premiums to be paid by the unit, and also giving due consideration to the differences between the part-time workers and the full-time employed persons in terms of job stability, working conditions and intensity of labor, and benefits.

The specific measurement methods of the monthly minimum wage standard and the hourly minimum wage standard are shown in the Annex.