Social security income and expenditure are seriously unequal, why are pensions still rising?

Currently, China's pension insurance is divided into two major categories: urban workers' pension insurance and urban and rural residents' pension insurance. The contribution standards are different for different kinds of pension insurance. The annual increase you refer to here should refer to the contribution standard or the contribution base, for the contribution ratio is generally more fixed, will not be adjusted every year.

There are two types of groups of employees who are insured for old age, the first of which is urban workers. Urban in-service workers are by the employer and the individual employee to pay a proportion of the unit contribution ratio of 16%, according to the unit of the total wages of employees as the contribution base, the amount of unit contributions, mainly based on the unit of the total wages of employees and the number of employees to determine the increase or decrease in the number of employees, so this contribution base is not the same; the individual employee contribution is in accordance with the proportion of 8% of the contribution, the contribution base of the actual salary of the employee. If the unit has to increase the salary for the employee every year, then the contribution base will also be increased, so whether the contribution base rises or not is linked to the salary of the person. Many units in the calculation of the contribution base, is in accordance with the previous year's actual salary as the contribution base, if the usual salary did not rise, but the end of the year performance rose, or the end of the year bonus increased, then the year's contribution base will rise, the rise in the contribution base, that is, the individual part of the payment will also rise.

The second category belongs to the flexible employment personnel, for the flexible employment personnel's contribution base, in fact, from the beginning of 2019 should be in most places is down. Because before 2019, is in accordance with the previous year half-caliber statistics of the average social wage of employees as the contribution base. The so-called half-caliber statistics of the previous year's average social wage of employees is the average wage of employees in urban non-private units.

But from May 1, 2019, in accordance with the requirements of the central government, the contribution base is based on the average monthly salary of the employees according to the full-caliber statistics, the full-caliber statistics include both urban non-private units, but also include urban private units, according to the full-caliber statistics of the previous year's average monthly salary of the employees, most of the places will be lower than the average monthly salary of the employees according to the half-caliber statistics. average salary, so the contribution base for the second half of 2019 is lower than that of 2018, but in 2020, although the average monthly salary of employees according to full-caliber statistics will still be used as the contribution base, but because the average salary of the society will increase every year according to the growth of the economic development level, the contribution base will also be increased, so the flexible personnel will pay the pension insurance according to the ratio of 20%. will actually increase every year.

Besides the employee's pension insurance, the contribution level of the urban and rural residents' pension insurance is relatively fixed, from the lowest contribution standard to the highest contribution standard. However, due to economic development and price increases, many places have abolished the minimum annual contribution of 100 yuan and replaced it with a minimum contribution of 200 or 300 yuan, while other contribution levels are basically retained. But because the minimum annual contribution of 100 yuan standard canceled, the original according to the minimum annual contribution of 100 yuan, now according to the minimum annual contribution of 200 yuan or 300 yuan standard to pay, so the feeling is up.

In summary, the pension insurance contribution is rising every year, mainly depends on whether it belongs to the urban workers' pension insurance, or urban and rural residents' pension insurance. For those who pay employee pension insurance, if the actual salary of the employee in the workplace rises, the contribution base will rise; flexible employment personnel if the average monthly salary of employees in the previous year rises, the contribution base will also rise; resident pension insurance mainly canceled the minimum contribution standard, in fact, is also a disguised rise.