The difference between individual account and overall account of social security

The main differences between social security pooling account and individual account are:

1, the concept is not, the overall account refers to the funds of various social insurance projects, while the personal account is used to record the part paid by the insured and the expenses transferred from the unit, as well as the interest of the above two parts;

2. Different roles. The role of the overall account is that the money in the overall account belongs to individuals. For example, in old-age insurance, if an employee dies before retirement age, the personal account of old-age insurance will be returned to the beneficiary, and the money in the personal account of medical insurance will be used by the individual, which can pay the outpatient expenses, and the part paid by the individual according to the social security medical regulations will be used to buy medicines. The role of personal account is the main basis for the insured to receive the relevant treatment of personal account when going through retirement procedures, transferring across the overall scope, surrendering before retirement, leaving the country to settle down before retirement or terminating the basic pension relationship after death;

3. The personal account of employee pension insurance can be used for personal consumption after retirement, while the overall account is used for monthly pension and funeral subsidy and the payment of pension to the survivors after the death of the insured.

Benefits of paying social insurance:

1, users can receive a certain living security fee every month after retirement;

2. Drugs purchased in pharmacies can be paid by social security cards, and expenses can be reimbursed when there is a major illness that requires hospitalization observation;

3. If an accident occurs during working hours or due to work reasons, compensation can be made;

4. Women have compensation allowance during childbirth, and all expenses incurred during childbirth are reimbursed.

Social security has the following characteristics:

1, protecting the rights and interests of workers, their relatives and employers;

2. The scope of protection only lies in the personal safety of workers caused by labor;

3. Mandatory, which can not be ignored by both workers and employers;

4. The purpose is to maintain the renewable and recyclable utilization of social labor resources;

5. The funds come from government policy support and contributions from personnel units and individuals.

To sum up, individual account and overall account are two important concepts, representing different parts of the social security system. In practice, individual account and overall account should complement each other and cooperate with each other in order to better achieve the goal of social security.

Legal basis:

Article 2 of People's Republic of China (PRC) Social Insurance Law

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 when they are old, sick, injured, unemployed and have children.