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Jul 19,2021

How the base of social security impact on recruitment

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From 2020, most provinces and municipalities in China will have a social security year from July each year to June of the following year. The social security contribution base remains the same during the same social security year. In July each year, the social security contribution base will be adjusted according to the average salary of employees in the region in the previous year. After the adjustment, social security contributions will be paid according to the new base, and some cities will require the difference to be paid forward.

This is the time of year when the social security base is being adjusted and it is also the peak hiring season. Most interviewees and companies are probably most concerned about social security salaries at the moment. What are individuals and companies considering when it comes to interviewing?

Sophia, a senior consultant at CBC Executive Search, says: "It is a legal obligation of the company to pay social security and a right of the employee. The first thing to be sure of is that interviewees have the right to ask questions about social security. However, it is not advisable for individuals to be the first to ask about social security during an interview, as this can give the recruiter a stereotypical impression that you are only concern about social security. In addition, the interviewer should be more pay attention on the social security contribution base. Suppose the average person at the interview asks: 'Does your company pay social security? That could easily be dismissed by the examiner with a simple 'yes'. Therefore, the interviewer should be careful when asking questions. "

Sophia also added, "The annual adjustment of the social security base in July has reduced the income tax burden for companies, but the total burden and cash flow expenses have increased. As a result, companies will consider the cost of hiring more when interviewing. So, after weighing up the situation, companies end up hiring the interviewee not because he presents a reasonable salary expectation, but more considering that the interviewee is suitable for the position and believes he is willing to work hard for the position."

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