(ECNS) – Nearly 62 percent of enterprises in China have underpaid social insurance contributions for their employees, which may affect an employee's social welfare in the future, according a latest white paper issued by 51shebao, a third-party social security organization.
The white paper says 24 percent of the enterprises surveyed have chosen the lowest social security wage base, instead of basing the pay on an employee's actual monthly salary.
Private enterprises, accounting for about 22.6 percent, and small enterprises with fewer than 50 employees, accounting for 24.2 percent, saw the most violations concerning the pay base standard.
On a positive, more than 82 percent of enterprises complete relevant procedures that allow new employees to participate in the social security program within 30 days of them joining the enterprise, an increase of more than 15 percent from 2013.
However, 14.5 percent process the application after the probation period and 1.2 percent as per the arrangement by their leaders.
There are still approximately two percent of enterprises that fail to have all their employees covered by the social security program, it is added.
The white paper also finds 36 percent of the enterprises surveyed have employees across the country, thus facing challenges posed by regional differences.
While only 47.3 percent of the enterprises allocate full-time personnel to take care of the social security needs of employees, more than 51 percent choose part-time staff or outsourcing services to do the job.
