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What Exactly Is the New Social Insurance Regulation?

What Exactly Is the New Social Insurance Regulation? HACOS瀚客企服
2025-08-14
3


New Policy

From Sept 1, "No-Social Insurance" Agreements Become Void! 


The new regulations have sparked heated discussions among netizens.


Participating in social insurance in accordance with the law is a legal obligation for both employers and employees. In response to the problems such as employers evading social insurance contributions and employees voluntarily giving up social insurance that exist in practice, the judicial interpretation has made clear stipulations:


Whether it is a mutual agreement between the company and the employees or a unilateral commitment by the employees, any agreement stating "not to pay social insurance" is invalid.

If a worker terminates the labor contract on the grounds that the employer failed to legally pay social insurance premiums, and requests the employer to pay economic compensation, the people's court shall legally support such request.



Rules for paying 

economic compensation


Workers will be paid one month's salary for each full year of work, and half a month's salary for less than six months of work.

After the administrative authority orders the employer to make up for the social insurance contributions, if the employer has already paid the social insurance fees to the employees in the form of subsidies, they can request a refund.



Common Misconceptions 


Myth 1: No need to pay social security during the probation period?

Error. Employers are required to apply for social security registration for their employees within 30 days from the date of employment. 


Myth 2: No need to pay social security if no contract is signed?

Error. As long as there is sufficient evidence to prove that there is a labor relationship between an individual and an entity, social security contributions must be made!


Myth 3: Social insurance is of no use to me. 

Error. Medical insurance can cover the corresponding medical expenses. Employment injury insurance guarantees that you will receive compensation for work-related injuries. Unemployment insurance can provide you with unemployment benefits. Maternity insurance provides maternity benefits to female employees. Endowment insurance ensures that you will receive a monthly pension after retirement.


What are your thoughts 

on this new regulation? 



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