How to choose the social security contribution grade

1, social security contributions or in accordance with the ability of the individual to set the grade is more reasonable, if the ability to high economic allow that can be in accordance with the highest level of payment; if the individual's salary is low ability is not very strong, or in accordance with the lowest level of payment is more appropriate.

2, individual participants in the social insurance monthly contribution standard is divided into the lowest class (40%), a class (60%), the second class (80%), the third class (100%) four grades. The lowest grade (40%) pension contribution consists of old-age pension, basic medical care + mutual aid for major diseases (8.5% + 1%), maternity insurance *** with the same composition, the monthly contribution amount ***548.57 yuan. The monthly contribution amount for the first tranche (60%) is 692.37 yuan, the second tranche (80%) is 835.97 yuan, and the third tranche (100%) is 979.77 yuan.

3. It should be noted that the cost of the lowest grade of old-age pension is 287.40 yuan, the first, second and third grades are 431.20 yuan, 574.80 yuan and 718.60 yuan, respectively; the cost of basic medical care + major illness mutual aid line are 242.06 yuan, and maternity insurance is 19.11 yuan.

Methods of collecting social insurance premiums

1. Proportionate premium system

This method is based on the insured's salary income, and a certain percentage is set, so as to collect the premiums. The main purpose of social insurance is to compensate the insured for the loss of income during the period of risky accidents in order to maintain a minimum living, so it is necessary to refer to the income on which the insured normally depends, on the one hand, as a measure of the standard of payment, and on the other hand, as the basis for the calculation of premiums.

The greatest defect of the proportional premium system based on work is that the burden of social insurance is directly linked to wages. Whether both employers and employees bear the burden of social insurance premiums or one of them does, the burden of social insurance is manifested in an increase in the cost of labor, and the result will be the crowding out of labor by capital, which will lead to an increase in unemployment.

2. Equalization of premiums

This means that the same amount of premiums is charged regardless of the income of the insured or the employer. This system has the advantage of simple calculation, easy to implement; and the use of this method of collecting insurance premiums in the country, in its payment, generally also adopts the equalization system, has the meaning of income and expenditure are equal. But its defect is that low-income people and high-income people pay the same premiums, in terms of affordability is obviously unfair.

Legal basis:

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

Article 12: Employers 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 Co-ordination Fund.

Employees shall pay basic pension insurance premiums in accordance with 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 have not participated in the basic pension insurance in the employing organization, and other flexibly employed persons participating in the basic pension insurance shall pay the basic pension insurance premiums in accordance with the state regulations, which shall be credited to the basic pension insurance general fund and the individual account respectively.