How is the base for social security contributions determined

The method of determining the base for social security contributions is as follows:

1. The base for the payment of social security fees by the employer is determined by the total wages of the employees of the unit, and the base for the payment of contributions by the employees is determined by the wages of the employees themselves. However, in practice, is calculated by my average monthly salary for the previous year, there are upper and lower limits, the specific amount according to the actual situation in each region; generally my average monthly salary is less than 60% of the average monthly salary of local workers, according to the average monthly salary of local workers 60% of the contribution; more than the average salary of local workers 300% of the average monthly salary of local workers, according to the average monthly salary of local workers 300% of the contribution, the more than part of the not credited in the the wage base for contribution. Contributions are determined once a year, and once determined, no further changes will be made within one year;

2. At present, there are two main scenarios for the determination of the social security base in the country, one is the average monthly salary of the insured person in the previous year, and the other is the salary of the insured person in the current month, which is then approved according to the upper and lower limits of the interception (the upper and lower limits are generally determined according to a certain percentage of the average social wage level). The caliber of wage statistics here is the total amount of wages issued according to the provisions of the National Bureau of Statistics included in the scope of statistics.

In response to the variety of forms of wage payment by employers, employees should pay attention to the following aspects when determining the contribution base:

1. All social insurance premiums, housing provident fund and, individual adjustment tax, etc., directly withheld and paid by the unit from the wages of the employees, should be included in the social insurance base;

2. Transportation subsidies, telephone subsidies, lunch subsidies, lunch subsidies and other subsidies, etc., paid by the unit in the form of cash or bank deposits to the employees in the form of cash or bank deposits to the employees personally. Subsidies, telephone subsidies, lunch subsidies, festival expenses, and allowances paid to special positions such as high temperature, high altitude, underground, poisonous and harmful positions shall be included in the social insurance base;

3. Salaries paid by the unit to individual employees through the method of after-tax profit commission or dividends shall be included in the social insurance base;

4. Employees who are under the base salary system and receive income based on the turnover or commission on the business performance shall be included in the social insurance base. The income of the employees who are paid on the basis of their turnover or business performance shall be included in the social insurance base;

5. 60% of the income of the employees who are contracted for business or whose expenses are underwritten and who are no longer reimbursed by the unit for their travel expenses shall be included in the social insurance base. Where a social insurance premium collection agency makes unauthorized changes to the social insurance premium contribution base or rate, resulting in under- or over-collection of social insurance premiums, it shall be ordered by the relevant administrative department to recover the social insurance premiums that should have been paid or to refund the social insurance premiums that should not have been paid; and the directly responsible supervisory personnel and other directly responsible personnel shall be sanctioned in accordance with the law.

Legal basis: Article 12 of the Social Insurance Law of the People's Republic of China

The employer shall pay the basic pension insurance premiums in accordance with the proportion of the total wages of the employees of the employer as stipulated by the State, which shall be credited to the Basic Pension Insurance Coordination Fund.

Employees shall pay basic pension insurance premiums in the proportion of their own wages as prescribed by the State, which shall be credited to their individual accounts.

Individual industrial and commercial households without employees, part-time workers who do not participate in basic pension insurance with their employers, and other flexibly employed persons who participate in basic pension insurance shall pay basic pension insurance premiums in accordance with the State regulations, which shall be credited to the Basic Pension Insurance Coordination Fund and to their individual accounts respectively.

Article 35

The employing unit shall pay work-related injury insurance premiums in accordance with the total wages of the employees in the unit and at the rate determined by the social insurance agency.