How to handle social security in bankruptcy liquidation?

According to the relevant provisions of Chinese laws, social security belongs to the second series of compensation. If an enterprise has liquidated assets, it will compensate the unpaid social insurance expenses after paying the capital, medical care, disability allowance, pension expenses, basic pension insurance, basic medical insurance expenses and compensation.

legal ground

Article 1 13 of the bankruptcy law

Bankruptcy property shall be paid off in the following order after giving priority to paying off bankruptcy expenses and joint debts:

(1) Wages, medical care, disability allowance and pension expenses owed by the bankrupt to employees, basic old-age insurance and basic medical insurance expenses owed to employees' personal accounts, and basic old-age insurance and basic medical insurance expenses that should be paid to employees according to laws and administrative regulations;

(2) Social insurance premiums and taxes owed by the bankrupt other than those specified in the preceding paragraph;

(3) Ordinary bankruptcy claims. If the bankruptcy property is insufficient to pay off the repayment requirements in the same order, it shall be distributed in proportion. The wages of directors, supervisors and senior managers of bankrupt enterprises shall be calculated according to the average wages of employees of the enterprise.