Is it legal for the company to pay social security according to the minimum standard?

Whether it is legal for the company to pay social security according to the minimum standard depends on whether this standard meets the legal provisions and the actual wages of employees.

Whether it is legal for a company to pay social security for its employees according to the minimum standards is an important issue related to the provisions of the labor law and social insurance law. This will be answered in detail below.

First, the social security payment standard stipulated by law

According to the Social Insurance Law of People's Republic of China (PRC) and relevant laws and regulations, the employer shall pay social insurance premiums for employees, including endowment insurance, medical insurance, unemployment insurance, industrial injury insurance and maternity insurance. The social security payment standard is determined according to the employee's salary base, and there is usually a minimum and maximum payment base.

Second, the legality of the company paying social security according to the minimum standard.

The company pays social security according to the minimum standard. On the surface, it seems to be in compliance with the law, but in fact there may be legal problems. First of all, it is illegal for companies to deliberately reduce the salary base of employees in order to reduce social security contributions. Because the salary base of employees should truly reflect their income level, and should not be artificially depressed.

Secondly, even if the company pays social security according to the minimum standard, it is illegal to pay social security below the statutory minimum payment base. Because the statutory minimum payment base is determined according to the local economic development level and the average wage of employees, it is the minimum standard to protect the basic social security rights and interests of employees.

Third, the company pays the risk of social security according to the minimum standard.

There may be many risks when a company pays social security according to the minimum standard. First of all, this practice may damage employees' social security rights and interests, resulting in employees not enjoying due protection in retirement and medical care. Secondly, once investigated by the social security department, the company may face administrative penalties such as fines and payment of social security fees. In addition, it may also affect the company's reputation and image, which is not conducive to the long-term development of enterprises.

To sum up:

Whether it is legal for the company to pay social security according to the minimum standard depends on whether this standard meets the legal provisions and the actual wages of employees. If the company deliberately lowers the salary base of employees or violates the statutory minimum payment base, then this behavior is illegal. Therefore, companies should abide by relevant laws and regulations to ensure that employees' social security rights and interests are guaranteed.

Legal basis:

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

Article 10 stipulates:

Employees should participate in basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance, and employers and employees should jointly pay basic old-age insurance, basic medical insurance and unemployment insurance.

Article 12 stipulates:

The employing unit shall pay the basic old-age insurance premium according to the proportion of the total wages of its employees stipulated by the state, and record it in the basic old-age insurance pooling fund. Employees shall pay the basic old-age insurance premium in accordance with the proportion of wages stipulated by the state and record it in their personal accounts.

Article 60 provides that:

The employing unit shall declare itself and pay social insurance premiums in full and on time, and shall not postpone or reduce the payment except for legal reasons such as force majeure. The social insurance premiums that employees should pay shall be withheld and remitted by the employer, and the employer shall inform me of the details of paying social insurance premiums on a monthly basis.

Labor law of the people's Republic of China

Article 72 provides that:

The social insurance fund shall determine the source of funds according to the types of insurance and gradually implement social pooling. Employers and workers must participate in social insurance and pay social insurance premiums according to law.