Source: Talking about social security
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Introduction –
By the end of 2023, the number of people in mainland China who are flexibly employed has reached 200 million, accounting for 14.3% of the country's employed population. For the huge flexible employment and unemployed groups, they need to pay social security by themselves, of which pension insurance and medical insurance occupy the majority, and in some cities, these two insurances are bound together to pay and cannot be paid separately, and social security has become an expensive expenditure in the flexible employment group.
In recent years, flexible workers have been in a state of contradiction between paying and not paying social security on the issue of whether to pay their own social insurance, which is mainly reflected in:
1. The social security expenses must be borne by themselves, unlike the in-service employee units that can bear 12%, plus they have no fixed occupation and unstable income, and the economic pressure is indeed great.
2. If you don't pay social security, there is no guarantee when you are old; if you pay social security, according to your own economic strength, you can only choose the lowest grade, can you get more pension after retirement than you have paid? Is it more cost-effective to save some money now?
Faced with such a real problem, it is a real dilemma for flexible workers!
So what is the reason why flexible workers are stuck in such a situation of social security contributions?
First of all, income instability and full out-of-pocket expenses:
Flexible workers often have an unstable source of income and do not have a regular employer to share social security contributions. They are required to pay the full amount of their own contributions, including the portion that should be borne by the employer, which significantly increases the social security burden of the individual compared to employees with a permanent employer. In the face of large income fluctuations, it is particularly difficult for flexible workers to maintain continuous and full social security contributions.
Second, flexible workers face the rising social security contribution base (average wage).
Taking Hebei Province as an example, the average wage in 2020 was 5,070 yuan, 5,788 yuan in 2021, and 6,211 yuan in 2022, an increase of 22.5% in three years.
For example:
If flexible employees choose the 60% payment standard for pension insurance in 2020, they need to pay for pension insurance for a year: 5070 * 60% * 20% * 12 = 7300 yuan, and in 2022, they need to pay 7300 + 7300 * 22.5% = 8942 yuan, an increase of 1642 yuan.
And can the income of flexible workers increase by 22.5% in three years?
In addition, in terms of the proportion of contributions, the minimum contribution ratio has not been lowered, and it must not be less than 60% of the average salary.
Third, the proportion of social security contributions will be raised
In recent years, with the gradual increase of social security pressure, the proportion of social security contributions has been increased, for example, the proportion of pension contributions in some areas has been raised from 20% to 24%, which means that flexible workers need to pay 4% more social security premiums. Such adjustments have directly increased individual spending on social security.
Fourth, the pressure of the social security fund and the lack of financial support:
When the social security fund is under pressure to lose money, it may maintain the balance of income and expenditure of the fund by raising the payment standard. Factors such as slowing economic growth and an aging population may lead to a decline in the rate of return on social security, or even a loss. In the absence of adequate financial subsidies, the adjustment of social security contribution standards is often passed on to the insured, especially the fully self-paying groups such as flexible workers.
In the face of such a reality, the call for flexible workers to reduce the burden of social security is getting higher and higher, and many netizens support the reduction of social security burden on flexible employees, saying that the pension policy should be adjusted, otherwise, flexible workers will be forced to choose to cut off social security.
There is no unit for flexible employment, so why do you have to pay the enterprise part?
Pay more, take less, retire 5 years later, and don't take up anything!
In this regard, we also call for flexible workers to reduce the proportion of social security contributions or increase the proportion of personal accounts!
In the next article, we will talk about: how to choose social security payment for flexible workers to be more cost-effective?