Calculation formula of rural social security pension

The calculation formula of rural social security pension is as follows:

Basic pension = (at the time of retirement, the average monthly salary of local employees in the previous year plus my average indexed monthly salary) divided by 2 times the payment period multiplied by1%; Personal account pension = the accumulated amount of personal account at retirement divided by the calculated number of months. This calculation method ensures that the payment of pensions is closely related to individual contributions, that is, the longer the payment period, the more the payment amount, and the more pensions you receive after retirement. At the same time, the accumulation of personal accounts will also affect the final pension amount, which will be paid monthly after retirement.

Calculation method of social security:

1, basic pension: determined according to the standards set by the local social security bureau;

2. Personal account pension: the accumulated amount of personal account divided by the number of months;

3. Transitional pension: calculated according to factors such as individual payment period and payment index;

4. Adjust the pension: adjust according to the price index and the average wage growth rate.

To sum up, the calculation method of rural social security pension ensures the positive correlation between the payment of pension and the number of years and amount of personal contributions by combining the basic pension formula and the accumulated amount of personal accounts, that is, the more personal contributions and the longer the number of years, the more pensions received after retirement, and the monthly distribution of personal accounts will also have an impact on the total amount of pension, which reflects the direct impact of personal contributions on the amount of pension.

Legal basis:

People's Republic of China (PRC) social insurance law

Article 16

Individuals who participate in the basic old-age insurance will receive the basic old-age pension on a monthly basis if they have paid a total of fifteen years when they reach the statutory retirement age. Individuals who participate in the basic old-age insurance and pay less than fifteen years when they reach the statutory retirement age can pay for fifteen years and receive the basic pension on a monthly basis; Can also be transferred to the new rural social endowment insurance or urban residents' social endowment insurance, enjoy the corresponding pension insurance benefits in accordance with the provisions of the State Council.