How the social security pension balance is calculated

The calculation of the social security pension balance is based on a combination of individual contributions, unit contributions, government subsidies and investment returns.

The balance of an individual's social security pension is mainly composed of two parts: first, the accumulation of personal account, which includes the personal pension insurance premiums paid by the individual in accordance with the prescribed rate of contribution and the resulting interest; and second, the part of the unit contribution, which is the unit's pension insurance premiums paid by the employee in accordance with the prescribed rate of contribution and will be transferred to the personal account. In addition, the government will give certain subsidies according to the policy, as well as the investment income of the pension fund will also be used as the value-added portion of the individual account.

When calculating the balance of social security pension, you need to pay attention to the following points:

Contribution ratio: The contribution ratio of individuals and units is based on the national policy, and it may be different in different regions and different occupations. Generally speaking, the contribution ratio for individuals is lower while that for units is higher.

The number of years of contribution: The number of years of contribution of an individual also affects the calculation of social security pension balance. Generally speaking, the longer the number of years of contributions, the higher the amount accumulated in the personal account.

Investment income: The investment income of the pension fund is also an important part of the value-added of the personal account. This part of the income will be affected by a variety of factors such as market conditions and investment strategies.

In summary, the calculation of the Social Security pension balance is a process that takes into account a number of factors.

Legal basis:

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

Article 12

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, and credit it to the Basic Pension Insurance Co-ordination Fund. Employees shall pay basic pension insurance premiums in accordance with the proportion of their own wages prescribed by the State and credited to their individual accounts. Individual business households without employees, part-time workers who do not participate in the basic pension insurance in the employer and other flexible employment to participate in the basic pension insurance, should pay the basic pension insurance premiums in accordance with the state regulations, respectively, credited to the basic pension insurance fund and individual accounts.