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What is the difference between unit endowment insurance and individual endowment insurance? What are

There are differences in payment nature, qualification, payment object and payment proportion; it is more suitable for employees to pay endowment insurance in the unit, and it is mainly because of higher cost that the unit does not pay half. What is the difference between unit endowment insurance and individual endowment insurance? What are the functions of endowment insurance? Let's have a look.

There are three differences between them

1、 The nature of payment is different:

Unit pay endowment insurance is mandatory, as long as you work in the unit, the unit will pay, otherwise it will be punished.

Individual endowment insurance is voluntary. If you think social security is more important, you can pay monthly, you can pay by yourself, or you can choose not to pay.

2、 Different qualifications:

The premise that the unit pays endowment insurance is that you have a normal job and a unit, but the account has no limit. Whether it is local or not, it can be handed over to social security personnel.

Individual paid pension doesn't need to work, but it's usually a local account.

3、 Differences in payment objects and payment proportion

The endowment insurance premium paid by the unit shall be jointly paid by the unit and the individual. The contribution rate of this unit is much higher than that of individuals.

However, if the unit only pays its own principal, the rate will be much higher. Most importantly, only 40% of them are included in personal accounts and 60% in social security accounts. If there is no perfect death, only the money in an individual account can be inherited.

Comparing the endowment insurance of the unit with that of the individual, it is found that the unit has paid a lot of endowment expenses. Because most of them are paid by units, the individual share is very low.

To sum up, it is more cost-effective for units to pay social security.

Extended information:

The function of endowment insurance:

To ensure the reproduction of labor force

Through the establishment of the endowment insurance system, it is conducive to the normal intergenerational replacement of the labor force, the retirement of the elderly, the smooth employment of the new growing labor force, and the rationalization of the employment structure.

It is conducive to social security and stability

Endowment insurance provides the basic living security for the elderly, so that the elderly have a sense of security. With the arrival of the aging population, the proportion of the elderly population is increasing, and the number is also increasing. Endowment insurance guarantees the basic life of the elderly workers, which is equal to the basic life of a considerable part of the population. For working workers, to participate in endowment insurance means that they have expectations for their future life after old age and are free from worries. From the perspective of social mentality, people are more stable and less impetuous, which is conducive to social stability.

It is conducive to promoting economic development

Many countries design endowment insurance system to link fairness and efficiency, especially partial accumulation and full accumulation of pension fund-raising mode. The amount of pension after retirement is directly related to the wage income and payment during the working period, which can undoubtedly produce a kind of active labor and improve efficiency.