Social Security Social insurance refers to the institutional arrangement that the state raises funds through various channels in accordance with the principle of corresponding rights and obligations, and provides material assistance including cash subsidies and services to the insured when they encounter risks such as old age, illness, work injury, unemployment and maternity, so that they can enjoy basic living security and avoid or reduce economic losses.

Social insurance is compulsory. According to national laws, employers and workers must participate in social insurance and pay social insurance premiums according to law. The cost of social insurance is related to the individual's salary level and contribution ratio. According to the level of economic development in different regions, the proportion of social security contributions is also different, and the payment base is determined according to the monthly average annual salary of employees in the previous year.