Booming e-business has offered more employment opportunities while the self-employed boss may not be able to pay social security fund for the employees as the threshold is high.
The government should lower the individual online retailers’ payments to the social security fund to encourage more people to develop online business.
We can see e-commerce provides a good channel to absorb idle workforce in the society, but the shortage of coverage by the social security system has made individual online retailers feel insecure about their employment.
According to statistics, more than 2.7 million jobs are created by online business conductors in 2011. .
E-commerce online shop retailers have flexible employment and have options to join the social security system. Compared with corporate, it is compulsory for corporate employees to participate in the system. Workers pay 8 percent of their wages and employers pay an amount equal to 20 percent of workers’ wages each month to workers’ pension accounts.
Corporate need to pay social insurance for the employees to encourage employees working for the corporate in a long term, meanwhile, the corporate can develop steadily.
The big social security payments are not attractive to e-commerce retailers to fulfill their commitment and have drive many of them to steer away from the system.
E-business conductors are not clear about the future business because the income is not stable, so they refuse to pay more than 800 yuan a month into employees’ pension accounts in first tier cities.
The government needs to issue more favorable policies to protect employees’ rights and interest and stimulate e-business development.
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