Why the social security base has become less

The lowering of the social security contribution base mainly means that the upper and lower limits of the social security contribution base will be lowered. Previously, the approved social security contribution base was based on the average wage of urban non-private sector on-the-job workers, and did not include the average wage of private sector, resulting in the upper and lower limits of social security contributions to the base of an inflated element.

Legal basis:

Article 12 of the Social Insurance Law of the People's Republic of China (PRC) stipulates that employers shall pay the basic pension insurance premiums according to the state's ratio of the total wages of the employees of the organization, which shall be credited to the basic pension insurance fund. Employees shall pay basic pension insurance contributions in proportion to their own wages as prescribed by the State, which shall be credited to their individual accounts. Individual business households without employees, part-time workers who do not participate in the basic pension insurance in the employer and other flexible employment to participate in the basic pension insurance, should pay the basic pension insurance premiums in accordance with the state regulations, respectively, credited to the basic pension insurance fund and individual accounts.