There are two main sources of funds for social security: first, employees who earn wages and their employers pay half of the social security tax; The second is the transfer of expenditure funds in fiscal expenditure. The first method is more transparent, and can make overall arrangements according to the current situation and development of social security, which is conducive to the continuity of the cause.

There are three ways to raise social security funds:

(1) Pay-as-you-go system: It means that social security relies entirely on current income to meet current expenditures, and no funds are reserved for insurance expenditures in future years. Its characteristics are: when social insurance is implemented, the rate is relatively low, but with the continuous development of social insurance, its income will be adjusted frequently with the average increase of expenditure level.

(2) A complete fund system: refers to the establishment of a fund for social insurance, which can meet the needs of paying insurance subsidies to the insured in the future.

Its characteristic is that the payment level of the insured can remain stable for a long time, so as to avoid constantly adjusting the payment level with the increase of insurance expenditure. However, this system requires a higher contribution rate in the initial stage of implementing social insurance in order to establish a fund.

(3) Partial fund system: refers to the payment level, with a certain reserve under the premise of meeting the expenditure needs at a certain stage. Its characteristic is to adjust the contribution rate according to the principle of stage balance. The initial contribution rate of insurance holding is low, and then it increases in stages with the increase of expenditure.