1, according to the provisions of Article 12 of the Labor Contract Law of People's Republic of China (PRC), the employer shall pay the basic old-age insurance premium according to the proportion stipulated by the state;

2. The employer must pay pension, work injury, maternity, unemployment and medical insurance for employees, which is a mandatory requirement;

3. If the company fails to pay social security, it will be punished by relevant departments and may affect the company's annual review;

4. The employee can terminate the labor contract because the company fails to pay social security, and ask the employer to pay economic compensation.

Basic components of social security:

1. Old-age insurance: providing basic living security for employees after retirement;

2. Medical insurance: medical expenses subsidies for employees and their families;

3. Unemployment insurance: providing living expenses for unemployed workers for a certain period of time;

4. Work-related injury insurance: providing medical expenses and living allowances for employees who suffer from work-related injuries or occupational diseases;

5. Maternity insurance: give certain financial subsidies to female employees for maternity.

To sum up, employees of small-scale companies must pay social security, otherwise they will face punishment and may affect the company's annual review. Workers also have the right to terminate the labor contract and demand economic compensation.

Legal basis:

People's Republic of China (PRC) social insurance law

Article 58

The employing unit shall, within 30 days from the date of employment, apply to the social insurance agency for social insurance registration for its employees. If the social insurance has not been registered, the social insurance agency shall verify the social insurance premium it should pay.