1. Concept of social security Social insurance refers to a system in which the state compulsorily establishes a social insurance fund through legislation to provide necessary material assistance to workers participating in labor relations when they lose their ability to work or become unemployed.

Social insurance is not for profit.

Social insurance mainly raises social insurance funds, and coordinates and adjusts the social insurance funds within a certain range to provide necessary assistance to workers when they encounter labor risks. Social insurance provides workers with basic living security. As long as workers meet the requirements

The conditions for enjoying social insurance are that you have established a labor relationship with the employer or have paid various social insurance premiums in accordance with regulations, and you can enjoy social insurance benefits.

Social insurance is the core content of the social security system.

2. Social security functions: 1. Function of stabilizing social life 2. Function of redistribution 3. Function of promoting social and economic development: First, the social insurance system functions as an important tool for demand management, thereby playing a positive role in the economy

; The second is that the effective use of social insurance funds can promote sustained economic prosperity; the third is that social security has become a basic condition for enterprises to recruit talents.

3. Methods of collecting social insurance premiums 1. Proportional insurance premium system This method is based on the insured person’s salary income and stipulates a certain percentage to calculate and collect insurance premiums.

The proportional system is adopted. It turns out that the main purpose of social insurance is to compensate the insured for the income lost during the risk accident in order to maintain his minimum living. Therefore, it must refer to the income he usually relies on for a living. On the one hand, it is used as a measure of benefits.

Standards, on the other hand, serve as the basis for premium calculation.

The biggest flaw of the work-based proportional insurance premium system is that the burden of social insurance is directly linked to wages. Whether the employer and employee pay the social insurance premiums or one of them pays the social insurance premiums, the burden of social insurance is expressed as a share of labor costs.

As a result, capital will crowd out labor, resulting in increased unemployment.

2. Equalized insurance premium system means that regardless of the income of the insured or his employer, the same amount of insurance premiums will be charged.

The advantage of this system is that it is simple to calculate and easy to implement universally; and countries that use this method to collect insurance premiums generally adopt an equalization system when paying insurance premiums, which means that all revenue and expenditure are equal.

But its drawback is that low-income people and high-income people pay the same premiums, which is obviously unfair in terms of affordability.

To sum up, everyone should have a basic understanding of social insurance and its ins and outs.