Why does the state force enterprises to levy basic old-age insurance premiums?

Article 72 of the Labor Law clearly stipulates: "Employers and laborers must participate in social insurance and pay social insurance premiums according to law." Article 10 of the Basic Old-age Insurance for Employees of Urban Enterprises stipulates: "The basic old-age insurance premiums paid by enterprises shall be paid directly by enterprises to social insurance agencies on a monthly basis; The basic old-age insurance premium paid by individual employees shall be collected by the employer on a monthly basis and paid to the local social insurance agency together with the basic old-age insurance premium paid by the enterprise. "

First of all, social insurance is compulsory. In other words, the collection ratio of social insurance premiums is mandatory by national laws and policies, and is not determined by employers and workers through consultation. For example, the Ministry of Labor's Interpretation of Several Clauses pointed out: "There is no provision on social insurance in the necessary clauses of labor contracts, because social insurance is implemented in the whole society according to law, which cannot be resolved by both parties to the contract through consultation." "Other contents agreed upon through consultation" refers to the agreed terms in the labor contract, that is, in addition to reaching an agreement on the necessary terms of the labor contract in accordance with this Law, if it is considered that some aspects related to the labor contract need to be coordinated, the agreed contents can be written into the contract, which is determined by both parties to the contract through voluntary consultation, rather than legal provisions.

Secondly, social insurance is mutually beneficial. That is to say, the state develops social insurance undertakings, establishes a social insurance system and sets up social insurance funds, so that workers can enjoy social insurance benefits according to law in cases of old age, illness, work injury, unemployment and maternity, and most of these funds come from social insurance premiums paid by workers and employers according to law. The social insurance fund shall determine the source of funds according to the types of insurance and gradually implement overall planning. Therefore, employers and workers must participate in social insurance and pay social insurance premiums according to law.

Third, social insurance is normative. In other words, the conditions and standards for workers to enjoy social insurance benefits are stipulated by laws and regulations. Article 12 of the Social Insurance Law stipulates: "The employer 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 according to the wage ratio stipulated by the state and record it in their accounts."

As can be seen from the above provisions, the standards and methods for employers and workers to pay social insurance premiums are legal, and it is obviously illegal for employers and workers to determine the payment methods through consultation. Social insurance is related to the vital interests of thousands of families and every worker. Nowadays, more and more workers, migrant workers and freelancers are concerned about their own medical insurance and pension, and their awareness of social insurance is constantly improving and strengthening, which is a gratifying phenomenon in the process of the continuous and in-depth development of social insurance in China.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.