It is illegal to pay pension insurance in the company’s name. According to the "Social Insurance Law", employees must sign a labor contract and have a labor relationship with the employer before they can pay social insurance premiums through the employer. If the two parties have not established a labor relationship, but only pay social security fees through an affiliated company and enjoy social security benefits, it is suspected of insurance fraud.

According to the provisions of the "Social Insurance Law", whoever defrauds social insurance benefits through fraud, forged certification materials or other means shall be ordered by the social insurance administrative department to return the social insurance benefits obtained by fraud, and shall be fined more than twice and five times the amount defrauded. the following fines.

Anyone who defrauds pension, medical, work-related injury, unemployment, maternity and other social insurance funds or other social security benefits by fraud, forged certification materials or other means is an act of defrauding public or private property as stipulated in Article 266 of the Criminal Law. Therefore, defrauding social security funds through "social security affiliation" has been suspected of a criminal offence.

Legal Basis

Article 58 of the "Social Insurance Law of the People's Republic of China (2018 Edition)" The employer shall provide compensation to its employees within thirty days from the date of employment. Apply to the social insurance agency for social insurance registration. If social insurance registration is not carried out, the social insurance agency shall determine the social insurance premiums that should be paid. Individual industrial and commercial households without employees who voluntarily participate in social insurance, part-time employees who have not participated in social insurance in the employer, and other flexible employment personnel should apply to the social insurance agency for social insurance registration. The state establishes a nationally unified personal social security number. An individual's social security number is a citizen's identity number.