What does the social security premium cover?

The premiums for social security are uncertain and are adjusted upward every year, as well as depending on the nature of their work and income. Social security contributions are limited to 15 years, and when the accumulated contribution time reaches the required number of years, you can receive a pension when you reach the legal retirement age. Social security premiums include the following:

(A) Basic Pension Insurance Premiums

1. Basic Pension Insurance Premiums Contributors

Specifically, these include: state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises, and other urban enterprises and their employees, urban individual industrial and commercial enterprises and their employees, enterprise management institutions and their employees and freelancers, and rural contract workers. freelancers, and peasant contract laborers.

2. Basic Pension Insurance Contributions

Enterprise units: adhering to the principle of combining social coordination with individual accounts, the insurance premiums are borne by both the unit and the employee***. Among them, the enterprise social co-ordination part of the contribution rate of about 20% of the total wages of the enterprise, the individual employee contribution rate of 8%. The contribution rate for freelancers, urban individual business owners and those who have terminated their labor relations and made subsequent contributions is 20%. Institutions: the regulations on the rate vary from region to region, and are approved by the social security agency.

3, rates and billing basis

Enterprise contribution rate of about 20%, billing based on the previous month's gross salary. The rate for individual enterprise employees is 8%, and the basis for billing is the average monthly salary of employees in the previous year, which is approved by the social security agency. Institutions have different rates, with the basis of the employee's contribution being the basic salary payable in the previous month, and the basis of the unit's contribution being the sum of all the individual employee's contributions. The rate for urban self-employed businessmen, freelancers and those who continue to pay contributions after the termination of labor relations is 20%, and 8% is credited to the personal account. The basis for calculation is the person's monthly salary income. The rate is 8% for employees of self-employed industrial and commercial households. The basis for billing is approved by the social security agency.

4, the use of the basic pension

The basic pension consists of two parts: the basic pension and the individual account pension. Specific policies are formulated and explained by the labor department.

(2) Unemployment Insurance Premiums

1. Unemployment Insurance Premium Contributors

State-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises and their employees, and institutions and their employees.

2. Unemployment Insurance Contributions

The employer pays 2% of the total wages of the employer, and the employees of the employer pay 1% of their own wages.

3. Rate and basis for calculation of contributions

The rate for the part of contributions paid by the unit is 2%, and the rate for the part paid by the individual is 1%; the basis for calculation of contributions is the gross salary of the previous month.

4. Disbursement of Unemployment Insurance Fund

The maximum period for receiving unemployment insurance premiums is 12 months for those who have paid premiums for one year or less than five years; 18 months for those who have paid premiums for five years or less than 10 years; and 24 months for those who have paid premiums for 10 years or more.

(3) Basic Medical Insurance Premiums

1. Basic Medical Insurance Premium Payers

State-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises and their employees, state organs and their staff, institutions and their employees, private non-enterprise units and their employees, and social organizations and their full-time employees.

2. Contributions to basic medical insurance

Basic medical insurance is based on the principle of a combination of social coordination and individual accounts, with premiums borne by both the employer and the employee***. The employer's contribution is generally about 6% of the employee's gross salary, and the individual's contribution is 2% of his or her salary. Individual contributions are all credited to individual accounts, with about 30% of the employer's contribution allocated to the individual account and the remainder used to establish a general fund.

3. Rates and billing basis

The rate for unit contributions is around 6%, and the rate for individual employees is 2%. The basis for calculating the contribution of enterprises is the gross salary of the previous month, while the basis for calculating the contribution of institutions, private non-enterprise units, social organizations and individual employees is approved by the social security agency.

4. Use of the basic medical insurance fund

Individual accounts are mainly used for minor illnesses or outpatient expenses, while the integrated fund is mainly used for major illnesses or hospitalization expenses. The starting standard of the coordinated fund is controlled at about 10% of the average annual salary of local workers, and the maximum payment limit is in principle controlled at about four times the average annual salary of local workers.

(D) Workers' compensation insurance premiums

1. Workers' compensation insurance premium contributors

State-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises.

2. Workers' compensation insurance premiums

Workers' compensation insurance premiums are paid by the enterprises, and industry-differentiated rates are applied, with the levy standard being the total wages of all employees multiplied by the industry-differentiated rate, and the average rate of workers' compensation insurance premiums is generally no more than 1% at present.

3, rates and billing basis

The state establishes industry-differentiated rates according to the degree of risk of work-related injuries in different industries, and establishes a number of rate grades in each industry based on the use of work-related insurance premiums and the incidence of work-related injuries. The rates are generally around 1% and are regularly adjusted by social security agencies. The basis for billing is the total wage bill of the enterprise in the previous month.

4, the use of work-related injury insurance benefits

The labor appraisal committee confirmed that employees disabled at work, in accordance with the relevant provisions of the provisions of the work-related injury insurance for urban employees, enjoy the work-related injury insurance treatment.

(V) Maternity Insurance Premiums

1. Maternity Insurance Premium Contributors

State-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises.

2. Maternity Insurance Contributions

Enterprises pay maternity insurance premiums, which shall not exceed 1% of the total wages.

3. Rate and basis for calculation

The rate is 1%, and the basis for calculation is the gross salary of the enterprise in the previous month.

4. Use of the Maternity Insurance Fund

Women workers who give birth or have a miscarriage in accordance with the provisions of the Family Planning Act are entitled to receive the following maternity insurance expenses: maternity allowance (maternity pay) for maternity leave paid in accordance with the average monthly wage of the municipal community in the previous year; examination, delivery, operation, hospitalization and medication fees incurred during the period from the time of pregnancy to the time of childbirth, and medical fees for infections of other illnesses caused directly by childbirth; and medical fees for other diseases contracted in accordance with the average monthly wage of the municipal community in the previous year. medical expenses; and male nursing leave pay in accordance with the average monthly social wage of the municipality in the previous year.

Related knowledge extended reading: social security specifically refers to what

Social security that is social insurance, is a social and economic system to provide income or compensation for the population incapable of work, temporary loss of labor positions or loss due to health reasons.

Social insurance scheme is organized by the government, which forces a certain group of people to form a social insurance fund by paying a part of their income as a social insurance tax (fee), and the insured can receive a fixed amount of income or compensation for their losses from the fund if certain conditions are met, and it is a kind of redistributive system, which aims to ensure the reproduction of material and labor force as well as the stability of the society. The main items of social insurance include old-age social insurance, medical social insurance, unemployment insurance, industrial injury insurance, maternity insurance and so on.

Social insurance must be based on the probability of occurrence of various risks and accidents, and in accordance with the standard of payment of the total amount of expenditure estimated in advance, to find out a certain percentage of the burden of the insured, as a standard for determining the rate of insurance premiums. Moreover, unlike commercial insurance, the calculation of social insurance rates, in addition to risk factors, but also need to take into account more socio-economic factors, to find a fair and reasonable rates.

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