Which is better, personal or business license to pay social security?

It is better for individuals to pay social security and business license, and the business license to pay social security is more comprehensive.

Social insurance paid by enterprises usually includes five insurances, namely, endowment insurance, medical insurance, unemployment insurance, maternity insurance and work injury insurance, which provide employees with comprehensive social security. In contrast, social insurance paid by individuals only includes endowment insurance and medical insurance. In addition, the social security paid by enterprises is usually based on a higher payment base and proportion, which means that employees can enjoy higher insurance benefits. Therefore, the social security paid by enterprises for employees with business licenses is more comprehensive and superior than that paid by individuals in terms of coverage and treatment.

Payment types of social security:

1. Individual payment of social security: usually refers to individual industrial and commercial households or freelancers paying social security fees to social security institutions themselves;

2. Social security paid by enterprises: refers to social security paid by enterprises for employees, including endowment insurance, medical insurance, unemployment insurance, work injury insurance and maternity insurance;

3. Flexible employees pay social security: applicable to part-time employment, temporary employment and other forms of flexible employment;

4. Civil servants pay social security: civil servants pay social security fees according to the proportion and standards stipulated by the state;

5. Expatriates pay social security: Expatriates working in China also need to pay social security according to regulations.

To sum up, compared with individual contributions, paying social security through business license not only covers more comprehensive five insurances of pension, medical care, unemployment, maternity and work injury, but also provides employees with better social security and insurance benefits on the basis of higher payment base and proportion.

Legal basis:

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

Article 58

The employing unit shall, within 30 days from the date of employment, apply to the social insurance agency for social insurance registration for its employees. If the social insurance has not been registered, the social insurance agency shall verify the social insurance premium it should pay. Employees-free individual industrial and commercial households who voluntarily participate in social insurance, part-time employees who do not participate in social insurance in the employing unit and other flexible employees shall apply to the social insurance agency for social insurance registration. The state establishes a national unified personal social security number. Personal social security number is a citizen's identity number.