What are the main sources of social insurance funds?

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 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. The main items of social insurance include endowment insurance, medical insurance, unemployment insurance, industrial injury insurance and maternity insurance.

Main methods:

1. Taxation method: unified standard, compulsory collection and unified collection and use;

2. Collection method: generally limited to social insurance, with certain flexibility;

3. Free financing method: it is not fixed and flexible, and comes from the voluntary participation of the public, such as issuing welfare lottery tickets.

Second, the social insurance fund investment model

Judging from the actual situation in various countries, except for industrial injury insurance, which is basically undertaken by enterprises, the funds for other insurance projects are generally jointly funded by individual workers, employers and the state. Generally can be divided into three ways of investment:

1, in the form of joint investment by individuals, enterprises and the state;

2. The form of joint investment by enterprises and the state;

3. The form of joint investment by individuals and enterprises.

Three. Sources of social insurance funds

Different types of social insurance have different sources of funds, mainly from four forms:

1, individual payment;

2. Enterprise payment;

3. Government funding or subsidies;

4. Investment income of the fund.

Social insurance funds generally implement the principle of tripartite burden. First, the insured is required to pay social insurance premiums according to a certain proportion of wage income during paid labor, and only when they retire in old age or have other accidents can they be eligible for social insurance benefits. At the same time, enterprises have to bear part of the cost. Enterprise payment is generally based on the total wages of employees or the sum of total wages plus retirement fees, which is extracted by the social insurance department in a unified proportion and included in the production cost or non-operating expenses of enterprises. The state is also responsible for the source of insurance funds. The state finances allocate funds to insurance funds to make up the gap between the insurance premiums paid by individuals and enterprises and the actual expenditures, or directly bear part of the insurance premiums or make up for management expenses. The main source of state funds is taxes. In addition, other operational income, such as interest, profits and social donations, can also enter the social insurance fund.

Legal basis:

People's Republic of China (PRC) social insurance law

Article 2 The state establishes social insurance systems such as basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance, so as to guarantee citizens' right to receive material assistance from the state and society in accordance with the law in case of old age, illness, industrial injury, unemployment and maternity.

Article 3 The social insurance system adheres to the principles of wide coverage, basic protection, multi-level and sustainability, and the level of social insurance should be compatible with the level of economic and social development.

Fifth people's governments at or above the county level shall incorporate social insurance into the national economic and social development plan. The state raises social insurance funds through multiple channels. People's governments at or above the county level shall give necessary financial support to social insurance. The state supports social insurance through preferential tax policies.