Pension insurance unit and individual contributions to retirement treatment is different

Whether you pay individual contributions or corporate contributions, the formula for calculating the pension entitlement for both types of pension insurance is the same, consisting of a basic pension + personal account pension. Basic pension formula: basic pension = (the city's average monthly salary of the previous year's on-the-job workers + the average indexed monthly contribution salary) ÷ 2 × the number of years of contributions at retirement (including the number of years of deemed contributions) × 1%; personal account pension = the amount of personal account reserves at retirement ÷ the number of months (50 years old 195 months, 55 years old 170 months, 60 years old 139 months). The integrated account is determined by the state based on a combination of factors such as the average social wage at the time of retirement and prices.

There is no difference in pension benefits between a social security unit and an individual. The basic pension is determined by the cumulative number of years of contribution, the contribution wage, the average wage of local workers, the amount of personal account, the average life expectancy of the urban population and other factors, and has nothing to do with the social security unit to pay or individual to pay.

The social security bought by the unit is called employee social security, including pension insurance, medical insurance, work injury insurance, unemployment insurance and maternity insurance, referred to as the five insurance, the individual to buy insurance can be divided into flexible employment personnel social security and residents of the social security, these two kinds of retirement, retirement pay is the same no difference.

There is a difference between a unit paying social security and an individual paying social security pension, as follows:

1, through the company to pay social security, the cumulative total of fifteen years, reaching the legal retirement age, you can receive a monthly pension. If it is not enough 15 years, you can continue to pay contributions, and you can receive a pension after 15 years;

2. Individual contributions are made on a yearly basis, and there is no mandatory requirement, it is a voluntary participation. In addition to individual contributions, the government also provides subsidies, and the more the individual contributes, the more the government subsidizes. Individual contributions and government subsidies are all credited to the participant's personal account;

3. Regardless of whether it's an employee pension or a resident pension, it's always the case that the higher the contribution base and the longer the period of time of contribution, the more pension you will receive after retirement. Individuals who contribute a low percentage will receive a lower pension after retirement.

Individuals pay social security policy regulations are as follows:

1, urban individual business households and flexible employment to participate in the basic pension insurance contribution base for the local average salary of on-the-job workers in the previous year, the contribution ratio of 20%, of which 8% credited to personal accounts, after retirement according to the basic pension of enterprise employees basic pension method of basic pensions;

2, medical insurance In terms of freelancers and self-employed people, they can choose to build only a general fund, not a personal account, and pay the basic medical insurance premiums of 4.2% of the average monthly salary of the previous year in the local area; they can also choose to pay 8% of the average monthly salary of the previous year in the local area and establish a personal account. Employees participating in medical insurance is the unit to bear 6%, the individual to bear 2%;

3, in the end of the pension insurance procedures, with the pension insurance procedures, as well as the relevant documents, to the local health insurance center for the payment of medical insurance;

4, the minimum payment of pension insurance for 15 years, the minimum medical insurance need to pay 25 years. And you can apply for pension benefits and medical reimbursement benefits when you reach retirement age.

Legal basis:

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

Article 4 Employers and individuals within the territory of the People's Republic of China shall, in accordance with the law, pay social insurance premiums and shall have the right to inquire into the records of payment, records of individual rights and interests, and to request the social insurance agency to provide social insurance counseling and other related services .