If an employee voluntarily gives up social insurance, the employer cannot be exempted from liability! What exactly happened? What are the consequences of giving up? Details attached!

Nowadays, almost all companies will pay social security for their employees, but some employees think that the fees are too high and want to give them up voluntarily. Recently, the Ministry of Human Resources and Social Security responded to this matter, stating that the company cannot be exempted from liability if employees voluntarily give up social security. So what exactly is going on with the company not being exempted from liability if employees voluntarily give up social security? What are the consequences of giving up?

If an employee voluntarily gives up social insurance, the employer cannot be exempted from liability

1. Why can’t the employer be exempted from liability if the employee voluntarily gives up social insurance? What are the consequences of giving up?

The Ministry of Human Resources and Social Security recently stated that in accordance with relevant national regulations, employers and employees should participate in the basic pension insurance system and pay basic pension insurance premiums on time and in full. This is both the legal right and the obligation of employers and employees. It cannot be exempted according to the wishes of employees or employers, otherwise they will bear corresponding legal responsibilities.

2. What are the new changes in social security in 2020?

1. Pension increases in various provinces will be implemented one after another

The Ministry of Human Resources and Social Security announced in April this year that the pensions for retirees will increase by 5% in 2020, marking the 16th consecutive increase. However, currently only Shanghai has released the 2020 pension adjustment plan, while other provinces have not yet released it.

Therefore, starting from the second half of the year, the remaining provinces will successively release pension adjustment plans. At present, Shandong, Jiangxi and other places have made it clear that the increased pension will be paid out before the end of July.

The basic pension for urban and rural residents will also increase. In accordance with the opinions of the State Council on the division of labor among departments for key tasks in the Government Work Report, announced on June 11, the minimum standard for basic pension for urban and rural residents will be raised. The Ministry of Human Resources and Social Security and the Ministry of Finance will take the lead in issuing relevant policies before the end of July.

2. Small, medium and micro enterprises continue to be exempted from three social insurance fees

Recently, the Ministry of Human Resources and Social Security, the Ministry of Finance, and the State Administration of Taxation issued the "Notice on Extending the Implementation Period of the Phased Reduction and Exemption of Enterprise Social Insurance Premiums Policy". The policy of exempting small and micro enterprises from the unit payment portion of the three social insurance premiums in various provinces, autonomous regions, municipalities and the Xinjiang Production and Construction Corps will be extended to the end of December 2020.

Enterprises that have encountered serious difficulties in production and operation due to the epidemic can continue to defer payment of social insurance premiums until the end of December 2020, and no late payment fees will be charged during the deferral period.

The reduction, exemption and deferral of social security fees will continue to reduce the social security burden on small and medium-sized enterprises and further help them tide over difficulties.

3. Achieve provincial-level coordination of pension insurance by the end of the year

The above notice issued by the three departments also requires that provincial governments should truly assume the main responsibility, accelerate the provincial coordination of the three social insurances, and ensure that the provincial unified collection and expenditure of the basic pension insurance funds for enterprise employees are realized before the end of 2020.

Previously, 20 provinces across the country had achieved provincial unified collection and expenditure of pension insurance funds. This means that by the end of the year, all provinces will achieve provincial unified collection and expenditure of pension insurance funds.

With the improvement of the coordination level, the timely and full payment of pensions is more guaranteed. This will not only further enhance the guarantee function of fund insurance payment in the province, but also lay a better foundation for realizing national coordination of pension insurance.

4. Use social security card in the whole process of pension insurance business

In accordance with the "Notice on Reducing the Issuance Cycle and Optimizing Social Security Card Management Services" issued by the General Office of the Ministry of Human Resources and Social Security in 2019, by the end of 2020, the use of social security cards in the entire process of pension insurance business will be realized, and the application of social security cards in employment services, real-name management of migrant workers, and wage payment will be promoted.

The social security card is used in the entire process of pension insurance business, which means that the social security card must also be used to collect pensions. Recently, Guangzhou and many other places have issued notices requiring retirees to use social security cards to receive pensions.

It should be noted that in order to use the social security card to collect pension, you must activate the financial function and bank account of the social security card so that you can receive the pension normally.

5. Individual accounts for urban and rural residents' medical insurance will be cancelled by the end of the year

In accordance with the requirements put forward by the National Healthcare Security Administration and the Ministry of Finance in 2019, individual (family) accounts for urban and rural residents' medical insurance should be cancelled before the end of 2020, and a smooth transition to outpatient coordination should be made; individual (family) accounts that have been cancelled shall not be restored or set up in disguise.

There are some drawbacks to the personal (family) accounts of the residents' medical insurance. First, the credit limit is very small and the coverage is insufficient, which actually makes it difficult to play the role of outpatient coverage. Second, the mutual aid capacity is poor, and it is limited to personal or family use, which also weakens the overall protection capacity of the fund. Third, it may easily induce abuse.

The National Healthcare Security Administration explained that the cancellation of individual (family) accounts for urban and rural residents' medical insurance will not reduce residents' medical insurance benefits, but will be achieved through the promotion of outpatient coordination. After various regions have promoted outpatient coordination, the medical expenses of minor outpatient illnesses can be included in the payment scope of the unified fund. The outpatient medical expenses of common and frequently occurring diseases incurred by the public in primary medical institutions can be reimbursed, with the ratio being about 50%.