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A Research on Moderate Level of Enterprise’s Social Insurance Paying in Our Country

Author: ZhangFan
Tutor: LiuZuoLing
School: Southwest University of Political Science
Course: National Economics
Keywords: enterprise social security reasonable level
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Type: Master's thesis
Year: 2012
Downloads: 86
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Abstract


Reasonable level of the social security will affect the sound development ofenterprises and social insurance system. With “the law of labor contract” and “the lawof social insurance” coming out, the legal environment of social security that ourenterprises faced is more and more serious. At present, the total social insurance rateof the enterprise is31.3%which has broken out the international standard25%.Enterprises, as the cells of the national economy,who want to realize the profitmaximization, trying to compress cost is one of the most effective ways. In China,most of the enterprises are labor-intensive ones. Social insurance, as an artificial cost,is of large expenditure in the total cost of the enterprise. The level of cooperates’social insurance directly affects the profit of the enterprise. The high rate of the socialinsurance may not only affect the competitiveness of the enterprise in the domesticmarket, but also block enterprise access to the international market. On the other hand,the competition belongs to the enterprises may be down because of the high rate ofthe social insurance, which puts affect on the progress in going to the world market.This paper firstly shows the course of social security in China. It is characteristicby the contribution rate paid which owns to the enterprises. Then from the view ofaffect put on the net profits, it values present level of this paying charged by theenterprises in China. Thirdly, comparing the amount and the structure of the rate withsome foreign countries whose feature is typical, it concludes that present level ofsocial security paid in our countries is too high. In the fourth part, it results that thelevel operated in our country is inferior which is compared to appropriate levelreckoned in this paper. Finally, it finds some effective policy and solution based onthe conclusion in this paper, which can alleviate the situation met with the enterprises,such as moderating the institution of the system, emphasizing the responsibility onthe government and individuals,etc.

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