Research On The Assessment Of The Social Insurance Burden Of Enterprises

Since the policy of reform and opening up and after the forty-year reform,the social security system with the Payment-based social insurance playing the dominant role has basically formed.The social security system plays an important role in increasing the benefits of the workers,relieving the fears and worries of the workers and promoting the harmony of labor relations and social stability etc..At the same time,under the conditions of market-oriented economy,the labor cost of the enterprise has become a critical factor that restricts the development of the enterprise.The corporate social insurance payment is an important part of the cost of labors.The social insurance burden of the enterprise refers to the proportion of all social security contributions to the total wages or profits of the company.However,the whole country is facing the problem of the enterprise’s overburden of the social insurance payment.The excessive social insurance payment has made the enterprises not able to bear the burden and seriously affects the enterprise competitiveness and the sustainable development.In order to enhance the sustainable and sound development of the company,the issues like properly decreasing the social insurance rates,increasing the social insurance expenditure of the government and accelerating the pace of the integrated national planning of social insurance have become the hot spots studied and discussed by the experts and the politicians.Based on the above background,this paper first elaborated on the level and suitability of the social insurance burden of the enterprises.The paper points out there are three dimensions to examine whether the social insurance payment burden of the enterprises is appropriate or not.First is the comparison of the burden level of the enterprise social insurance payment in an international level mainly that of nominal payment level.Second is the contrast between the actual enterprise payment of the social insurance and the total wages,namely the analysis of the payment burden level of the total wages(Enterprise Social Insurance Payment Burden = Actual Payment Total of Social Insurance / Total Wages).Third is the contrast between the total amount of the actual enterprise social insurance payment and the total profits,namely the analysis of the payment burden level of the total profits(Enterprise Social Insurance Payment Burden = Actual Payment Total of the Social Insurance / Total Profits).On the above bases,the paper makes a horizontal comparison of the social insurance payment burden between China and the other countries and concludes that the enterprise social insurance burden level of China is much heavier than that of the othercountries,which has become an increasingly heavy “Shackle” that hinders the development of the enterprise.Then the paper makes an analysis over the current condition of the enterprise social insurance payment burden in China and makes a quantitative analysis over the enterprise social insurance burden level by taking the example of A enterprise in Nanchang,and finally comes to a conclusion of the overburden of the enterprise social insurance payment.At last,the paper elaborates the reasons and adverse effects of the overburden of the enterprise social insurance payment in China,and puts forward the suggestions to reduce the enterprise social insurance payment burden.First,Accelerate the reform of social security system and reduce the payment pressure of endowment insurance.Second,Enhance the reform of medical and healthcare system and restrict the expense of medical insurance.Third,Strengthen the government financial support to the social insurance.