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Payroll

Social Security

Government-mandated contributions funding welfare benefits for employees.

Full Definition

Social security refers to government-mandated contribution systems in which both employers and employees pay a percentage of earnings into a state fund that provides welfare benefits — including retirement pension, unemployment insurance, disability benefits, and healthcare. Contribution rates and benefit structures vary widely by country. Examples include National Insurance (UK), Social Security tax (US), CPF (Singapore), and GOSI (Saudi Arabia). Payroll software is pre-configured with each country's social security rules and automatically calculates contributions.

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