What is the use of social security payment base?

What is the use of social security payment base?

The social security payment base is determined according to the individual wage level (within the range of 300%-60% of the local average wage) and 300% or 60% of the local average wage.

Payment amount = payment base * payment proportion. The level of social security base determines the level of payment, and the high base is directly proportional to the high pension benefits in the future.

Declaration process based on social security

From February to May every year, the insured unit shall report the social insurance payment base of the next settlement year to the municipal social insurance fee collection management center or the district social insurance agency (hereinafter referred to as the social insurance agency) that handles the insurance registration.

The payment base declared by the insured unit shall be signed or confirmed by the insured employee himself.

If the payer fails to declare according to the regulations, the social insurance agency may temporarily determine the monthly payment base at 1 10%.

The payment base is an important calculation basis for the insured to enjoy social insurance benefits. After workers participate in social insurance, social security agencies will establish personal accounts for basic old-age insurance and medical insurance for life. The higher the base of employees' contributions, the more personal accounts, the more disposable medical expenses and the higher the pension they receive when they retire. And the insured units and insured persons conceal, omit or underreport the payment base, which will directly reduce the level of social insurance benefits enjoyed by insured persons.

The monthly payment base of social insurance is generally determined according to the average monthly salary of employees in the previous year, which is determined once a year. Once determined, it may not be changed within one year.

Everyone knows the role of social security payment base, right? Our social security contributions are calculated according to the cardinal number, which is an algorithm that everyone should abide by. So we should not only know how much to pay each month, but also pay attention to the payment base.

Legal basis:

Article 12 of the Social Insurance Law of People's Republic of China (PRC) stipulates: "The employer shall pay the basic old-age insurance premium according to the proportion stipulated by the state and the total wages of its employees, which shall be credited to the basic old-age insurance pooling fund. Employees should pay the basic old-age insurance premium in accordance with the proportion of their wages stipulated by the state and record it in their personal accounts. "

Article 23 of the Social Insurance Law of People's Republic of China (PRC) stipulates: "Employees shall participate in the basic medical insurance for employees, and employers and employees shall pay the basic medical insurance premiums in accordance with state regulations."

Paragraph 3 of Article 2 of the State Council's Decision on Establishing the Basic Medical Insurance System for Urban Employees stipulates: "The medical insurance premium shall be paid by the employer and the employees. The employer's contribution rate should be controlled at about 6% of the total wages of employees, and the employee's contribution rate is generally 2% of his salary income. With the economic development, the contribution rates of employers and employees can be adjusted accordingly. "