How to calculate employee social security payment base

Legal analysis: social security base refers to the social insurance payment base of employees in a social security year, based on the monthly average of all wages of employees in the previous social security year. The social security base is determined once a year, and once it is determined, it will remain unchanged for one year. Due to different wages, the payment base has upper and lower limits. If the wage income cannot be determined, the average wage of local employees in the previous year shall prevail.

Legal basis: People's Republic of China (PRC) Social Insurance Law.

Article 12 The employing unit shall pay the basic old-age insurance premium according to the proportion of the total wages of employees stipulated by the state and record it in the basic old-age insurance pooling fund. Employees shall pay the basic old-age insurance premium in accordance with the proportion of wages stipulated by the state and record it in their personal accounts.

Article 35 The specific methods for determining the base of social security contributions can be divided into two categories: one is that the income is higher than 300% of the local average wage, the other is that the income is lower than 60% of the local average wage in the previous year, and the other is to pay according to 60% of the local average wage in the previous year.