What will happen if the company defaults on social security?

Mainly has the following adverse consequences:

1. Employees' personal social security can't be transferred out or retired before the arrears are paid in full, resulting in hospitalization and work-related injuries that can't be reimbursed, which is unfavorable to employees' personal life.

2. When social security is in arrears and needs to be paid back, a certain percentage of late fees will be levied to increase the cost burden of enterprises.

3. Employees can leave their jobs on this ground, and have the right to get economic compensation according to law, and may also face fines and late fees from social security departments.

Extended data:

Social insurance is a social and economic system that provides income or compensation for those who lose their ability to work, are temporarily unemployed or suffer losses due to health reasons. The main items of social insurance include endowment insurance, medical insurance, unemployment insurance, industrial injury insurance and maternity insurance.

The social insurance plan is organized by the government, forcing a certain group to use part of its income as social insurance tax (fee) to form a social insurance fund. Under certain conditions, the insured can get fixed income or loss compensation from the fund. It is a redistribution system, and its goal is to ensure the reproduction of material and labor and social stability.