Social security contribution base adjusted every July

The social security contribution base is adjusted once a year in July, and the upper and lower limits of the new contribution base are determined based on the previous year's average social wage.

While the social security contribution base is adjusted once a year, the Social Security Administration will also require institutions to declare the adjustment of the contribution base based on the average salary of the employees in the previous year. The principle of the adjustment is to take the monthly average of all the salary income earned by the employees in the previous year to derive the new social security contribution base for the current year.

I, social security base is what it means

The so-called social security base refers to the enterprise or individual employee, used to account for the payment of social insurance costs of the payroll base, with the base multiplied by the corresponding rate, you can get the enterprise or individual should pay how much social insurance amount.

The base figure for social security contributions varies across the country, as it is linked to the average monthly salary of local workers for the previous year, and is determined once a year, with no further changes for a year afterward.

For enterprises, they generally use the total salary of employees as the contribution base to pay social security fees, while individual employees generally use their own average monthly salary as the contribution base to pay social security fees.

Two, when the social security base began to adjust

About July. Generally speaking, in July every year, the state will make an adjustment to the social security contribution base, which is based on the previous year's average social wage to determine.

While the state is adjusting the social security contribution base, the Social Security Administration will also ask the institutions to declare the contribution base according to the average monthly salary of the employees in the previous year. The principle of the adjustment is to take an average of all the employees' previous year's salary income to arrive at a new contribution base for the current year, and after obtaining the new contribution base, the employees are required to pay the insurance premiums according to the new contribution base.

The new contribution base is determined in July of the current year and will be implemented from July onwards, and will continue to be adjusted in June of the following year.

Three, social security base is how to calculate

Social security contribution base is generally determined by the employee's own salary income in the previous year.

1, when the employee's own salary income is higher than 300% of the average monthly salary of local employees in the previous year, it should be in accordance with the average salary of local employees in the previous year 300% of the average salary of local employees as the basis for social security contributions;

2, when the employee's own salary income is lower than the average monthly salary of local employees in the previous year 60% of the average monthly salary of local employees in the previous year should be in accordance with the average salary of local workers to 60% of the average salary of local employees as the basis for social security contributions.

3, when the employee's salary income is between 60% and 300% of the average monthly salary of the local workers in the previous year, the employee should pay the social security contributions according to the actual calculated value of the base.

Generally, the higher the base for social security payment, the more premiums you need to pay, but at the same time, the more pensions you can receive after retirement.

Legal basis:

The Social Insurance Law of the People's Republic of China

Article 61 The social insurance premium collection agency shall collect social insurance premiums in full and on time in accordance with the law, and inform the employers and individuals of the status of the payment of premiums on a regular basis.

Article 62 If an employing unit fails to declare the amount of social insurance premiums to be paid in accordance with the regulations, the amount to be paid shall be determined in accordance with 110 percent of the amount of the unit's contributions for the previous month; after the contributing unit has made up for the declaration, the social insurance premium collection agency shall settle the bill in accordance with the regulations.