Are social security and provident fund the same thing?

Are social security and provident fund the same thing?

Although social security and provident fund are both systems related to employee welfare, they are not the same thing. Social security refers to the social insurance system, including basic old-age insurance, basic medical insurance, unemployment insurance, industrial injury insurance and maternity insurance, aiming at providing basic social security for employees. Provident fund refers to the housing provident fund system, which aims to help employees buy houses, repay mortgages and provide life security after retirement.

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First, the definition of social security and provident fund

Social security and provident fund are two different systems, namely social insurance system and housing provident fund system.

1. Social security: Social insurance refers to a social security system established by the state for employees, including basic old-age insurance, basic medical insurance, unemployment insurance, industrial injury insurance and maternity insurance. The purpose of social security is to provide basic social security for employees in pension, medical care, unemployment, work injury and maternity.

2. Provident fund: Housing provident fund refers to the funds paid by employees and employers according to a certain proportion for buying houses, repaying mortgages and providing living security after retirement. The management and use of provident fund are regulated by relevant laws and regulations, aiming at helping employees solve housing problems.

Second, the difference between social security and provident fund

There are obvious differences between social security and provident fund in nature, use and management.

1. nature: social security is a comprehensive social insurance system, covering pension, medical care, unemployment, work injury and maternity; Provident fund is a system specially used for employees to buy houses and provide housing security.

2. Use: The social security fund is mainly used to provide basic social security for employees under various living conditions, such as medical expenses and pensions; The funds of the provident fund are mainly used for the housing needs of employees, including buying houses and repaying mortgages.

3. Management: Social security is managed by the social insurance fund established by the state and supervised by relevant government agencies; Provident funds are paid by individuals and employers in accordance with the prescribed proportion and managed by the housing provident fund management center.

To sum up:

Although social security and provident fund are both systems that provide benefits for employees, they are obviously different in nature, use and management. Social security is a social insurance system, which provides comprehensive social security; Provident fund is a system established to solve the housing problem of employees. Relevant legal basis includes People's Republic of China (PRC) Social Insurance Law and People's Republic of China (PRC) Housing Provident Fund Management Regulations. When we understand and use these two welfare systems, we need to plan and use them reasonably according to the specific situation.

Legal basis:

In order to fully understand the legal basis of social security and provident fund, the following are several important laws and regulations related to them:

1. Social security: The Social Insurance Law of People's Republic of China (PRC) stipulates the basic principles and management methods of social insurance. For example, article 13 stipulates five social insurances: basic old-age insurance, basic medical insurance, unemployment insurance, industrial injury insurance and maternity insurance.

2. Provident Fund: The Regulations on the Administration of Housing Provident Fund in People's Republic of China (PRC) stipulates the management and use of housing provident fund. For example, Article 11 stipulates that employees and employers should pay the provident fund in accordance with the regulations, and specifies the scope of use of the provident fund.