An increase in social security contributions

Legal analysis: There is no provision for increasing social security in China. Social security policies are formulated by local social security departments themselves, and the proportion of contributions stipulated by provinces and cities will generally not change easily except in special circumstances.

The payment base of social security is mainly determined according to the average monthly salary of the society in the area where the employees are located in the previous year. The minimum social security for employees should not be less than 60% of the average social wage, and the maximum should not be higher than 300% of the average social wage. For on-the-job employees, the monthly salary of employees is generally the payment base. In order to save costs, most companies usually pay social security fees to employees at the lowest payment base. In other words, as long as the average social wage rises, the minimum social security payment will also rise.

Legal basis: Regulations on the Administration of Social Insurance Premium Declaration and Payment.

Article 10 The employing unit shall pay social insurance premiums in one of the following ways within the prescribed time limit with the payment notice issued by the social insurance agency:

(1) Payment to banks or other financial institutions (2) Other methods agreed with social insurance agencies.

Social insurance agencies and employers can sign agreements with banks or other financial institutions, and entrust banks or other financial institutions to withhold and remit social insurance premiums for employers and their employees according to the collection vouchers issued by social insurance agencies.

Article 11 The social insurance premiums payable by employees shall be withheld and remitted by the employer. No unit or individual may interfere or refuse when the employer performs the obligation of withholding and remitting according to law. If the employer fails to pay in full and on time, the social insurance agency shall order it to pay within a time limit, and an overdue fine of 0.5‰ shall be added daily from the date of default. The employer shall not require employees to bear the late payment fee.