Social insurance payable differs depending on whether the employee leaves at the end of the month or one day before the end of the month.

We will take an employee who leaves X company in November as an example to see how social insurance premiums change.

(Social insurance here refers to employee pension insurance and health insurance)

Rule 1: Social insurance is calculated and paid monthly, not daily. Therefore, if the period of employment is even one day, the premiums will be calculated for one month.

Rule 2: The following day of resignation is called the “date of disqualification. Social insurance  premiums arise up to the month prior to the “date of disqualification.”

Rule 3: Social insurance premiums will not arise from the month in which the “date of disqualification” exists.

Cases where the resignation date is the last day of the month

November 29

November 30 = date of resignation

December 1 = date of disqualification

In this case, social insurance premiums for November will arise because November is the month prior to the date of disqualification.

Social insurance premiums for December will not arise since the disqualification date exists in December.

The company will deduct half of the Social Insurance premiums for November from the employee’s salary, and the company will pay half.

From December, the employee can either join the social insurance of their new employer, join the “National” Pension Plan and “National” Health Insurance, voluntarily continue the health insurance of Company X, or be a dependent of their spouse.

Cases where the resignation date is not the last day of the month

November 24

November 25 = date of resignation

November 26 = date of disqualification

If the resignation date is not the last day of the month, the resignation date and the disqualification date will be in the same month, November. The social insurance premiums for Company X will not accrue from November, in which the disqualification date exists (Rule 2).

In this case, half of the social insurance premiums for October will be deducted from the employee’s salary, and the company will pay half.

From November, the employee can either join the social insurance of their new employer, join the “National” Pension Plan and “National” Health Insurance, voluntarily continue the health insurance of Company X, or be a dependent of their spouse.

Conclusion

Setting the resignation date on a day other than the last day of the month can save the employer one month’s worth of social insurance premiums.

However, employees are required to either join the social insurance of their new employer, join the “National” Pension Plan and “National” Health Insurance, voluntarily continue the health insurance of Company X, or be a dependent of their spouse.