How can employers compensate workers if they fail to pay social security?

Legal analysis: According to the labor law and social insurance laws and regulations, units and individuals who should pay social insurance premiums should pay social insurance premiums in full and on time, and the old-age insurance premiums should be included in the social insurance fund. If the employer fails to pay the old-age insurance premium as required, the relevant administrative department shall order it to pay it within a time limit. It is not in line with the relevant provisions of social insurance laws and regulations to reward the old-age insurance premium that the employer should pay to the social security department and directly incorporate it into the insurance fund to pay the workers. The compensation standard can be the benefits that the employer obtains when it fails to perform its legal obligations.

Legal basis: Article 86 of People's Republic of China (PRC) Social Insurance Law. If the employer fails to pay the social insurance premium in full and on time, the social insurance premium collection agency shall order it to pay within a time limit or make up for it, and impose a 0.5% late fee on a daily basis from the date of default. Failing to pay within the time limit, the relevant administrative departments shall impose a fine of more than one time and less than three times the amount owed.