Why is the social security contribution base higher than the actual salary? How is the social security payment base calculated?

Why is the social security contribution base higher than the actual salary? How is the payment base calculated?

First, why is the social security payment base different from the salary?

The social security payment base is based on your average monthly salary in the previous year. The salary is 4k+, but the social security payment base is 7k+, which means that your average monthly salary last year was 7k+.

Because the monthly salary changes too frequently, the social security payment base can only be adjusted regularly every year, and there are different wages and bases.

However, the social security contribution base also has upper and lower limits, not with the infinite increase of wages.

If the employee's wage income is lower than 60% of the full-caliber provincial wage in the previous year, the payment shall be calculated according to 60% of the full-caliber provincial wage.

If the employee's wage income is higher than 300% of the full-caliber provincial wage in the previous year, the payment shall be calculated according to 300% of the full-caliber provincial wage. ?

Second, if you change jobs at this time, will the new unit start from a new base?

Yes!

If you join a new company, it will be based on the salary of the month you joined the company. It is not excluded that some companies pay directly according to the minimum social security payment base in order to save costs, so there will be certain treatment losses.

Let me give you an example to understand the algorithm.

Xiao Wang joined a company on June 20 19, and his monthly salary has increased by 2,000 yuan since June 200219. Because the social security contribution wage base is based on? Social security payment year? To divide by, then his social security contribution salary base of 202 1 should be calculated as follows:

From June 20 19 and July 20 19 to June 2020, the salary base of Xiao Wang's social security contribution is: the monthly salary of June 20 19.

From July 2020 to June 20021year, the salary base of Xiao Wang's social security contributions was: the average monthly salary from June 2065438 to June 2009+February 2009.

From July of 20021year to June of 2022, the salary base of Xiao Wang's social security contribution is the average monthly salary in 2020 (natural year).

Xiao Wang's monthly increase of 2,000 yuan will be reflected in the social security payment year in 2022 (from July 2022 to June of the following year).