Shanghai for social security contribution base adjustment

Shanghai general social security base adjustment in April.

Social insurance base, or social security base for short, is the base of social insurance contributions made by an employee in a social security year. It is determined according to the monthly average of all wage income earned by the employee from January to December of the previous year. The social insurance contribution base is an important basis for calculating the social insurance premiums to be paid by the employer and its employees and the social insurance benefits of the employees, and there are upper and lower limits, with the specific amount depending on the actual situation in each region.

The contribution base is an important basis for the calculation of social insurance benefits for insured persons. After a worker participates in social insurance, the social security agency establishes a lifelong basic pension insurance individual account and a medical insurance individual account for him or her. The higher the employee's contribution base, the greater the amount of money stored in his or her individual account, the more medical expenses at his or her disposal, and the higher the pension he or she receives upon retirement. The concealment, omission or under-reporting of the contribution base by the insured units and the insured persons will directly reduce the level of enjoyment of the social insurance benefits of the insured persons

The monthly contribution base for the social insurance is generally determined according to the monthly average value of the annual salary of the employees in the previous year, which is determined once a year, and will not be changed for one year after it is determined.

From February to May each year, insured units are required to declare the social insurance contribution base for the next settlement year at the municipal social insurance premium collection and management center or district social insurance office (hereinafter collectively referred to as social insurance agencies) where they are registered.

The contribution base declared by the insured unit shall be confirmed by the signature of the insured employee or by means of public announcement.

If a contributing unit fails to make a declaration in accordance with the regulations, the social insurance agency may temporarily determine the contribution base at 110 percent of its monthly contribution base for the previous year.

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