[Direct answer]This is illegal. Paying social insurance is a legal obligation of both employers and employees. If an employee signs a "commitment to voluntarily waive social insurance" and the company issues a "social insurance subsidy" instead, the commitment is invalid—if the employee complains or files for arbitration later, the company will still be required to make up for all the social insurance payments and bear the late payment penalties; moreover, the company can demand the return of the subsidies already issued, and the employee cannot benefit from both sides. The employee himself may also face practical losses such as interrupted eligibility for purchasing a house or a car, and discontinued medical insurance reimbursements due to interrupted social insurance payments.

I. Problem Background and Typical Scenarios

"We'll give you the money as a subsidy, and you'll pay for your own social insurance. You'll actually get more in your hands." —— Many small and medium-sized enterprises use this argument to cut costs, and employees are willing to sign the agreement just to get the cash in their hands. However, when they get sick and can't get reimbursed by medical insurance, when their eligibility to buy a house is ruined due to interrupted payments, or when they file a complaint for arbitration upon resignation, the company will realize that this "win-win" arrangement is actually a lose-lose trap.

II. Key points of dispute

First, the legal effect of the commitment to renounce payment. Second, the responsibility for making up arrears and paying late fees. Third, the rules for the return of social insurance subsidies. Fourth, employees' right to complain and the issue of statute of limitations.

III. Professional analysis by Henglue Law Firm

First, the invalidity of the commitment: According to the provisions of the Social Insurance Law and the regulations on the collection and payment of social insurance premiums, employers shall register and pay social insurance premiums for employees within 30 days from the date of employment—this is a mandatory legal obligation that cannot be waived by mutual consent. Article 38 of the Labor Contract Law of the People's Republic of China also stipulates that workers who have not paid social insurance in accordance with the law may terminate the contract and claim economic compensation. The "voluntary waiver" commitment signed by employees is invalid because it violates mandatory legal provisions. No matter how formal the commitment is or even if the employees voluntarily propose it, it cannot preclude the company's obligation to make payments. Second, the retroactive payment and late payment penalties: If employees file complaints or apply for arbitration with the social insurance audit department, the company must retroactively pay all social insurance premiums during the employment period (the company's portion and the deducted and paid portion shall be handled in accordance with regulations), and the late payment penalties shall be borne by the company—this section provides a complete demonstration of the public case: First, the worker signed a commitment agreeing that the company would not pay social insurance, but later filed a complaint and led to the company retroactively paying over 9,000 yuan in social insurance premiums and bearing the late payment penalties. The court also supported the company's claim for the return of the already paid social insurance subsidies. Second, another court similarly ruled that the commitment was invalid in a similar non-payment arrangement and ordered the employee to return over 10,000 yuan in subsidies already paid by the company—the two judgments jointly established the three-step result of "retroactive payment + late payment penalties borne by the company + return of subsidies". Third, the balance logic of subsidy return: If employees receive both the subsidy and the benefits of retroactive payment, it constitutes double benefits—the court supports the company's request for the return of the "social insurance subsidies" to avoid one party receiving double benefits; however, the company must prove that the amount in question is indeed a social insurance subsidy (listed separately in the wage structure and with clear annotations in the payment records). If it is mixed into the salary, the claim for return will not be supported; the scope of return is limited to the corresponding period of retroactive payment. Fourth, the practical cost for employees: the impact of interrupted payment during non-payment—interrupted medical insurance benefits (restricted reimbursement in the next month), missing pension payment years, and interrupted eligibility for housing and car purchases and points-based household registration; employees can still file complaints for retroactive payment after leaving the company (social insurance audits do not apply to ordinary arbitration time limits, and practices generally accept unpaid arrears within two years); the agreement of "employees promising never to complain" is also invalid. Fifth, compliance recommendations: For companies—abandoning non-payment arrangements saves small money but buries big risks (retroactive payment + late payment penalties + economic compensation + administrative penalties), replacing regular employees with flexible employment arrangements (interns, retired rehires) with compliant non-labor relationship arrangements; for employees—not signing non-payment commitments, and even revoking them at any time if signed (invalidity of commitments), and calculating the losses of interrupted payment and the benefits of retroactive payment before seeking legal protection; this firm has repeatedly emphasized in labor compliance cases that there is no "negotiating space" for social insurance, which is one of the few inflexible items in labor relations.

IV. Practical suggestions and legal basis

The first step is to recognize the invalidity: the commitment to waive payment violates mandatory regulations and is invalid from the outset. Both parties should not harbor any illusions. The second step is to make up for the payment early: actively make up for the payment after the complaint to mitigate the loss, and keep evidence for disputes over late payment fines. The third step is to handle the subsidies: keep records of the subsidy nature, and balance the refund with the payment made up. The fourth step is to protect rights: employees should pay attention to the impact of interrupted payment, and ensure that there are smooth channels for complaints when leaving the job. Main legal basis: Articles 58, 60, and 63 of the Social Insurance Law of the People's Republic of China, Article 38 of the Labor Contract Law of the People's Republic of China, and the Interim Regulations on the Collection and Payment of Social Insurance Premiums; the specific application shall be subject to the currently effective provisions.

5. Henglue Law Firm's Advice

There are three key points regarding the abandonment of social insurance payments: signing the commitment letter is futile if legal obligations cannot be waived; the company will bear the penalty for late payments, and any subsidies already issued must be refunded; and employees will bear the hidden losses of interrupted payments. This deal is simply not worth it. Those involved in social insurance payment disputes can seek help through the following channels:Labor arbitration and work-related injury compensationThe service provides a comprehensive solution that can be integrated with the compliance of enterprise employmentIntellectual property protection and corporate lawFor the plates, you can refer to the relevant information regarding their removal and compensationSpecial servicesFor the column, if you have any questions about the wage dispute, you can consult us.Business and contract disputes in enterprisesTeam.

VI. Frequently Asked Questions

Q1: Is the waiver signed voluntarily by employees valid?

Invalid. Paying social insurance is a statutory mandatory obligation. The employee's voluntary waiver of this obligation is invalid from the outset because it violates mandatory legal provisions. The employee can revoke this waiver and protect their rights at any time.

Q2: What responsibilities does the company need to assume after an employee files a complaint?

Pay all the social insurance premiums during the employment period in arrears, and the company shall bear the late payment penalty; if the employee terminates the contract as a result, he/she may also claim economic compensation.

Q3: Can I get back the social security subsidies that have been issued?

This can be claimed. After the employee makes up for the payment, they can enjoy both social insurance and subsidies, which constitutes a double benefit. The court supports the company's request for the return of the subsidies for the corresponding period, provided that the company can prove the nature of the payment.

Q4: Who will bear the losses caused by employees' interrupted social insurance payments?

The losses such as the interruption of medical insurance reimbursement and the discontinuity of housing purchase eligibility are mainly borne by the employees themselves —— this is also one of the core reasons why the arrangement of giving up payment is unfavorable to employees.

Q5: Can I still file a complaint and request retroactive payment even though I've left the company a long time ago?

The social security audit and recovery do not apply to the one-year labor arbitration statute of limitations. In practice, complaints about arrears in payments are generally accepted. Filing a complaint as soon as possible is conducive to evidence verification.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Lawyers about specific situations.

VII. Related public cases (for reference, not handled by our firm)

The following cases are all sourced from the official websites of courts at all levels, judicial authorities, and authoritative media and have been publicly disclosed. They are unrelated to the cases handled by our firm. They are provided solely for reference in understanding relevant adjudication rules and do not constitute opinions on specific cases.

[Case No.]The case number has not been made public.
[Trial Court]The People's Court of Ganyu District, Lianyungang City, Jiangsu Province
[Judicial Summary]The worker signed a commitment letter agreeing that the company would not pay social insurance for him. Later, he complained and the company retroactively paid him over 9,000 yuan in social insurance contributions and over 8,000 yuan in late payment penalties. The company sued the worker, demanding that he bear the late payment penalties. The court held that paying social insurance is a statutory obligation and not a matter subject to negotiation, so the agreement was invalid. The late payment penalties are a punishment for the employer's illegal actions, and should be borne by the company itself. The court therefore ruled to dismiss the company's claim.
[Source]The China Court Network article titled "Who Should Bear the Late Payment Penalty Generated After the Employer Makes Up for the Social Insurance Premium?" (2025-11)

[Case No.]The case number has not been made public.
[Trial Court]The People's Court of Yandou District, Yancheng City, Jiangsu Province
[Judicial Summary]The hotel replaced the payment of social insurance with social insurance subsidies. The employee submitted an application for voluntarily not paying social insurance, but was later ordered by the administrative authority to make up for the payment of 23,041.64 yuan. The court ruled that the agreement between the two parties not to pay social insurance was invalid, and the social insurance subsidies of 15,216 yuan received by the employee had no legal basis and constituted an unjust enrichment. The court ordered the employee to return the money to the company.
[Source]The official website of the Yandu District Court in Jiangsu Province published an article titled "【Learn the Law in Yandu】'Voluntarily giving up social insurance in exchange for subsidies'—it seems like a win-win situation, but it's actually illegal!" (dated September 2026).

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Labor arbitration legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in a timely manner.