Why can some enterprises only pay three insurances?

Social security payment by enterprises is influenced by the scale and nature of enterprises. For small-scale enterprises, paying five insurances and one gold will increase the burden on enterprises and affect their business development. Therefore, some small enterprises may choose to pay only three insurances to reduce the burden and maintain their operations. This also explains why many small enterprises only pay three insurances but not the other two insurances and provident fund.

In addition, the nature of the enterprise will also affect social security payment. Different types of enterprises have different social security policies. For example, individual industrial and commercial households generally only need to pay endowment insurance and medical insurance, and the other four insurances do not need to be paid. Therefore, if the enterprise belongs to individual industrial and commercial households or other specific types of enterprises, it is a legal way to pay only three insurances.

Is it legal for the company to pay only three insurances?

It is illegal for a company to pay only three insurances, and the legality of paying social security is stipulated by the labor law. The Labor Law stipulates that employers and workers must participate in social insurance according to law and pay corresponding social insurance premiums. Social insurance consists of five types of insurance, including endowment insurance, medical insurance, maternity insurance, unemployment insurance and industrial injury insurance. Therefore, it is illegal to pay only three risks and not the other two. Enterprises should abide by relevant laws and regulations, pay five insurances and one gold in full, and ensure that employees' social security rights and interests are guaranteed. Enterprises should understand and abide by relevant social security policies, ensure compliance and provide necessary social security for employees.