How will adjusting the upper limit of social security base affect wages?

Adjust the upper limit of social security base in many places, and pay more social security fees for employees whose personal social security base is higher than the upper limit of local social security base, which directly affects personal wage income; For employees, the personal social security base has not been adjusted in that year, which is neither higher than the upper limit of the local social security base nor lower than the lower limit of the local social security base, and will not have a great impact on wage income.

First, the definition of social security foundation

Social insurance base (1), referred to as social insurance base, refers to the social insurance payment base of employees in a social security year. It is determined according to the average monthly wage income of employees from June 1 day to February 1 day in the previous year. The social insurance payment base is an important basis for calculating the social insurance premiums paid by employers and their employees and the social insurance benefits of employees.

Second, the determination of the social security base

Recently, the social security payment bases in Shanghai, Chongqing and Shenzhen have also been adjusted, and the upper and lower limits are all higher than 20 16. For example, in 20 17, the upper and lower limits of Shanghai employees' social security payment base were adjusted to 195 12 yuan and 3902 yuan respectively, which were 20 1695 yuan and 339 yuan respectively;

According to the data of relevant policy questions and answers in Shanghai Social Insurance Law (II), the base of employees' contributions in the current year is determined according to their average wage income last month. The upper and lower limits of the individual contribution base are determined according to 300% and 60% of the average monthly salary of employees in this Municipality published in the previous year, and the values are calculated according to the average monthly salary of employees in this Municipality, and advanced to the corner and then to the yuan according to the rounding principle.

Third, the upper limit of social security base directly affects the payment of personal social security fees.

The fees paid by personal social security shall be paid according to the employee's personal social security base and the latest local social security policy.

Taking the Interim Measures for the Management of Individual Accounts of Employees' Basic Endowment Insurance (III) as an example, the payment of social security fees for endowment insurance is calculated according to the average monthly salary of individuals (including wages, bonuses, allowances, subsidies and other income), which are divided into:

1. If my average monthly salary is lower than 60% of the average monthly salary of employees announced by the local government, I will pay 60% of the average monthly salary of local employees;

2. If my average monthly salary exceeds 300% of the average monthly salary announced by the local government, I will pay 300% of the average monthly salary of local employees, and the excess will not be recorded in the base of payment salary or pension.

(1) Based on the average salary of Beijing employees in 20 16 years:

In 20 16, the average salary of local employees in Beijing was 92,477 yuan, and the average monthly salary was 7,706 yuan, so the upper limit of local social security base was 7,706 yuan * 300% = 2318 yuan, and the lower limit was 7,706 yuan * 60% = 4,623.6 yuan.

If the average monthly salary of employees is higher than or equal to the local social security upper limit, the social security premium shall be paid according to 23 1 18 yuan; if it is lower than the local social security lower limit, the social security premium shall be paid according to 4,623.6 yuan. If the base is the same as last year, they need to pay social security fees according to last year's base.

(2) Taking the average salary of Beijing employees in Shanghai in 20 16 as a reference:

In 20 16, the average salary of local employees in Shanghai was 78,045 yuan, and the average monthly salary was 6,504 yuan, up by 9.5% over the previous year. Then the upper limit of local social security base is 6504 yuan *300%= 195 12 yuan, and the lower limit is 6504 yuan *60%=3902.4 yuan.

If the average monthly salary of employees is higher than or equal to the local social security upper limit, the social security premium shall be paid in accordance with 195 12 yuan; if it is lower than the local social security lower limit, the social security premium shall be paid in accordance with 3,902.4 yuan. If the base is the same as last year, they need to pay social security fees according to last year's base.

Fourth, the upper limit of social security base directly affects the payment and has an absolute impact on the wages of employees.

According to the above data, it can be seen that adjusting the upper limit (or lower limit) of social security base has a certain impact on the social security expenses of individuals whose average salary is higher than or lower than the upper limit of local social security base.

For employees with relatively high income levels, because of the adjustment of social security base, individuals need to pay more social security fees, resulting in a decrease in their wages. For citizens whose income level has not reached the upper limit of social security base and their personal base has not changed, their social security contributions and wages have no relative influence.

Reference data

Baidu encyclopedia-definition of social insurance base.

Question and Answer on Policy in Article 8 of Shanghai Social Insurance Law.

Item 7 of Article 1 of the Interim Measures for the Administration of Individual Accounts of Employees' Basic Endowment Insurance.

Notice of Beijing Municipal Bureau of Statistics on Announcing the Average Wage of Beijing Workers in 20 16.

Notice of Shanghai Municipality on Relevant Matters Concerning the Average Wage of Employees in 20 16 Years.