Social insurance is a shared contribution: both the employee and the employer pay a percentage of the employee’s insured salary into the national system. It funds pensions, work-injury and other benefits — and it is not optional.

Two shares, one calculation

Every month you calculate two figures for each employee: the employee’s share, which you deduct from their gross pay, and the employer’s share, which your company pays on top. Both are based on an insured-salary figure that sits within official minimum and maximum limits.

  • Employee share — deducted from gross, reduces net pay.
  • Employer share — an additional cost to the company.
  • Insured salary — bounded by a floor and a ceiling set by the authority.
Watch the ceiling. Above the maximum insured salary, contributions stop rising. Applying the rate to the full salary instead of the capped figure is one of the most common payroll errors.

Why it is easy to get wrong

The rates, the floor and the ceiling are all set by the authorities and updated periodically. A spreadsheet built last year may use last year’s ceiling. Multiply a small error across every employee and every month, and the gap — and the compliance risk — grows quickly.

Keep it correct automatically

The Five HR applies the current social-insurance rules alongside income tax in the same payroll run. Employee and employer shares are calculated against the correct insured salary, deducted and reported, and stored with a full breakdown you can show an auditor.

Compliance should not depend on remembering to update a formula. It should be the default.