How to calculate the average monthly wage index of individuals?

The calculation method of individual average monthly wage index is as follows:

1, find out the average monthly salary of local employees one year before retirement as the benchmark annual salary (c1);

2. Calculate the average payment wages of employees over the years (X 1, X2, ..., Xn), and divide the average payment wages of each year by the average payment wages of development zones in the corresponding years (C2, C3, ..., Cn) to obtain the average payment wage index over the years;

3. Multiply the annual average payment wage by the average payment wage index of the corresponding year to get the indexed payment wage;

4. Add up the indexed payment wages in all years, and then divide it by the accumulated payment months of enterprises and employees (M) to get the individual indexed monthly average payment wages (S).

Calculation basis of social security:

1. Average monthly salary of individuals: refers to the average monthly salary of individuals during the payment period;

2. Payment base: usually based on the average monthly salary of individuals, combined with local social security policies;

3. Payment proportion: different proportions are set according to different social security projects (pension, medical care, unemployment, work injury and maternity insurance);

4. Payment years: refers to the accumulated years for individuals to participate in social security;

5. Policy provisions: According to the level of economic development and social security policies, each region has specific provisions on the base and proportion of payment.

To sum up, the calculation of individual monthly average payment wage index is based on the average wage of the local society in the year before retirement, combined with the ratio of the average payment wage of employees over the years to the average payment level of the development zone, through indexation, divided by the cumulative payment months, and finally get the individual indexed monthly average payment wage. This process not only reflects the level of individual contributions, but also considers the differences in regional economic development.

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 its 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. Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employing unit and other flexible employees who have participated in the basic old-age insurance shall pay the basic old-age insurance premiums in accordance with state regulations and record them in the basic old-age insurance pooling fund and individual accounts respectively.