What does the monthly social insurance contribution base mean?

Monthly social insurance contribution base is the employee's social insurance contribution base for a month.

Social insurance base, referred to as social security base, is the social insurance contribution base of an employee in a social security year. It is determined on the basis of the monthly average of all wage income earned by the employee from January to December of the previous year. The social insurance contribution base is an important basis for calculating the social insurance contributions to be paid by the employer and its employees and the social insurance benefits of the employees, and there is an upper limit and a lower limit, with the specific amount depending on the actual situation in each region.

Expanded material:

The upper limit of the contribution base means that the part of the employee's salary income exceeding 300% of the arithmetic average of the average monthly salary of the in-service employees in the province or city in the previous year will not be counted as the contribution base;

The lower limit of the contribution base means that the employee's salary income is lower than 60% of the arithmetic average of the average monthly salary of the in-service employees in the province or city in the previous year and 60% of the arithmetic average of the average monthly salary of the in-service employees in the province or city in the previous year will be counted as the lower limit of the contribution base. 60% of the arithmetic average of the average monthly salary of the on-service workers in the province or city in the previous year shall be the contribution base.

Social insurance contribution base has upper and lower limits, the minimum can not be lower than 60% of the previous year's average monthly salary of the city's employees (private enterprise employees, individual industrial and commercial employees and non-city urban household employees shall not be less than 50%, private enterprise legal persons, shareholders, individual industrial and commercial owners shall not be less than 100%); the maximum can not be higher than the previous year's average monthly salary of the city's employees 300%. The average wage of the city's employees is published annually by the Municipal Bureau of Statistics.

References:

Baidu Encyclopedia-Social Insurance Base