What are the benefits of social insurance? What is the difference between paying for social insurance yourself and paying for it through a company?

Social insurance is a social and economic system that provides income or compensation to people who have lost their ability to work, temporarily lost their jobs, or suffered losses due to health reasons. What are the benefits of social insurance? What is the difference between paying for your own social insurance and paying for it through a company? Let’s find out with Feng Chao from Dongguan !

What are the benefits of social insurance? What is the difference between paying for social insurance yourself and paying for it through a company?

1. What are the benefits of social insurance? The purpose of paying social insurance is to protect the citizens' right to obtain material assistance from the state and society in accordance with the law in cases of old age, illness, work-related injuries, unemployment, childbirth, etc. The main items of social insurance include pension insurance, medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance.

1. Pension insurance is a social insurance system in which workers receive certain economic compensation, material assistance and services from the government and society after they reach the statutory retirement age.

2. The basic medical insurance system for urban employees is a social insurance system established based on the affordability of finance, enterprises and individuals to protect the basic medical needs of employees. All employers, including enterprises (state-owned enterprises, collective enterprises, foreign-invested enterprises and private enterprises, etc.), government agencies, institutions, social groups, private non-enterprise units and their employees, must participate in basic medical insurance. The basic medical insurance fund for urban employees is composed of the basic medical insurance social pooling fund and personal accounts. Basic medical insurance premiums are composed of employer and employee personal accounts.

3. Work-related injury insurance is also called occupational injury insurance. When a worker is accidentally injured due to work reasons and in the course of work, or develops an occupational disease due to exposure to occupational hazards such as dust, radiation, toxic substances, etc., the state and society shall provide necessary material assistance to the injured, disabled, and to the dependents of the deceased.

4. Unemployment insurance is a system enforced by the state through legislation. It is a fund established by the society to provide material assistance to workers whose source of livelihood is temporarily interrupted due to unemployment. All types of enterprises and their employees, institutions and their employees, social groups and their employees, private non-enterprise units and their employees, and employees with whom state organs have established labor contract relations should apply for unemployment insurance.

5 Maternity insurance is aimed at the physiological characteristics of reproductive behavior. According to the law, when working women temporarily interrupt their work and lose their normal source of income due to childbirth, the state or society provides material assistance.

What are the benefits of social insurance? What is the difference between paying for social insurance yourself and paying for it through a company?

2. What are the benefits of social insurance? What is the difference between paying for social insurance yourself and paying for it through a company?
(1) Different types of insurance available

Individuals can participate in both urban employee social security and urban and rural resident social security. If you pay social insurance in a company, you can only participate in urban employee social insurance.

1. To participate in urban employee social security as an individual, in some areas, you must participate in pension insurance, medical insurance and unemployment insurance at the same time, and in some areas you can choose to participate in some of these three types of insurance. It depends on whether the local policy bundles these three insurances.

2. When participating in urban and rural residents’ social security as an individual, you can participate individually or participate in urban and rural residents’ pension insurance and urban and rural residents’ medical insurance at the same time. Even if you participate at the same time, you must go through the procedures separately. Because these two insurances are completely independent.

3. If you pay social insurance at a company, you can only participate in urban employee social insurance. Social security for urban employees is divided into five types of insurance: pension insurance, medical insurance, unemployment insurance, maternity insurance and work-related injury insurance. In some areas, the five social insurances are bundled together and must be participated in at the same time. In some areas, the five social insurances are not bundled together and can be participated in separately. The specific details shall be subject to local policies.

(2) The insured population is different
1. Urban employee social security is aimed at two types of people. One is the working-age population who has established a labor relationship with an employer, regardless of whether they have local household registration, urban household registration or rural household registration. The other type is industrialists, entrusted archiving personnel, and flexible employment personnel. It mainly targets the local working-age population who have no fixed unit and no stable income. In most areas, it is related to household registration. In other words, only those with local household registration can participate.

2. Urban and rural residents’ pension insurance is mainly aimed at urban residents with local household registration or people of working age among rural residents who are not covered by urban pension insurance, especially the unemployed. Urban and rural residents’ medical insurance is aimed at people of working age with local household registration who are not covered by urban employees’ medical insurance, especially the unemployed, as well as the elderly, children and students. You cannot participate in these two types of insurance without local household registration.

(3) Different payment entities and payment standards
1. Urban employees participating in social security unit insurance: Social security expenses are borne jointly by the employer and the individual, with the employer paying the majority and the individual paying the minority. It is a statutory compulsory insurance and there is no subsidy. The payment standards for the five social insurances vary from region to region, and the specific regulations are not uniform.

2. Participants of the insured persons who are flexible employees in urban areas: Social security expenses are borne entirely by the individual. It is not a statutory compulsory insurance. Participants can voluntarily participate in the insurance and voluntarily choose the payment standard. The payment standards for the three insurances are regulated by local regulations in different places. In many areas, flexible employment personnel who meet the requirements of the 4050 policy can enjoy government social security subsidies. The form and standard of subsidies shall be subject to local policies.

3. Urban and rural residents participating in social security: They can participate voluntarily, pay premiums annually, bear the costs themselves, and can enjoy subsidies. Urban and rural residents can choose from multiple payment levels for pension insurance. The payment standards for urban and rural residents participating in medical insurance are fixed and cannot be chosen.

(4) The statutory retirement age for pension insurance is different from that for retirement
1. Retirement age for urban employee pension insurance: 60 years old for men who retire normally. The female worker is 50 years old. The age limit for female cadres is 55, and the age limit for female flexible employment personnel is 50 or 55, depending on local policies. Those who belong to special occupations or have completely lost their ability to work due to illness rather than work-related reasons can retire early: men at 50 or 55 years old (depending on local policies) and women at 45 years old.

(5) Different medical insurance reimbursement benefits: The payment standards for urban employee medical insurance and urban and rural resident medical insurance are different, so the reimbursement benefits are also different. The urban employee medical insurance premium standards are high and the benefits are also high. The payment standards for urban and rural residents’ medical insurance are relatively low, only 100-300 yuan per year, and the reimbursement benefits are not as good as those for employee medical insurance. Since different places have different regulations, the deductibles, upper limits, reimbursement ratios and other standards are different, and the specific data is difficult to describe. The outpatient coverage rate of employee medical insurance in various places is generally not less than 70%, and the inpatient coverage rate is not less than 85%. The residents’ medical insurance outpatient coverage is generally not less than 50%, and the hospitalization coverage is not less than 60%.

2. Retirement age for urban and rural residents’ pension insurance: 60 years old for both men and women.