Recently, a hot topic of discussion has been the new social security regulations effective from September 1st. The core principle is that previous agreements between employers and employees to “not pay social security” are now invalid; all companies and individuals must contribute to social security, or they will be considered illegal!
Honestly, paying social security according to the law should be a given, but why does this action stir such sensitive nerves among workers and business owners? As Mr. Run said, the implications behind this matter far exceed the event itself; this is just the beginning.
For many years, I have emphasized the importance of protecting employees’ legal rights to weekends, but the actual situation is evident to all. Regarding social security, I believe there is no need to interpret it negatively like some influencers do, claiming it is a means of robbing the poor to benefit the rich. First, we need to clarify what social security really is.
Many people perceive it as a form of social protection, but I think that view is superficial. With the introduction of this regulation, it is foreseeable that some small businesses with thin profit margins will fail. Even those that survive will likely abandon hiring more employees in favor of using robots as cheap labor. But is that the solution? Some experts have already started to patch up plans to evade social security, suggesting discussions about requiring robots to pay social security. Indeed, robots carry the character “人” (person) in their designation. If they are merely machines, like hammers or vehicles used by workers, they assist in completing tasks, and ultimately, workers will not disappear, so social security contributions will continue. However, if we view robots as tools that replace workers, then original workers may become unemployed and stop paying social security, leading to a larger deficit in the social security system. This is why these experts believe that even with the use of robots, social security contributions are necessary.
Have you noticed something? The experts are not concerned about whether robots are ethical beings; rather, they are focused on how machines replacing humans affects the overall social security landscape. Social security has essentially become a special type of tax.
Since it is a tax, not paying it is not an option. For instance, in some regions, children’s eligibility for school is linked to their parents’ social security contributions. You should weigh this carefully. For individuals, additional taxes can have a significant impact and are difficult to manage, but businesses can be managed more effectively. From a company’s perspective, every employee hired incurs a comprehensive cost. If social security contributions increase, salaries must be lowered. If salaries cannot be reduced, layoffs will be necessary to control total costs. Once you understand this layer, you realize this is just a simple game of strategy.
It is said that companies that cannot afford to pay social security for their employees should close down. This statement is not entirely wrong. While it may sound strong and reasonable during economic prosperity, it seems somewhat insensitive during economic downturns. It is akin to strictly shutting down food stalls that do not meet hygiene standards during a famine, demanding that such stalls cease operations for the sake of the victims. Shouldn’t accountability be directed at those who created the famine in the first place?