What does the payment base mean?

The payment base is generally used to set standards for individuals and pay social security in place.

The payment base usually refers to the basic base for the insured to pay social insurance, which is between 60% and 300% of the average social wage. The calculation method of the payment base is generally as follows: the payment base multiplied by the payment ratio is the insurance premium that the parties need to pay. The payment base is usually the basis for the insured to pay in proportion.

Social insurance refers to the basic old-age insurance, unemployment insurance and medical insurance premiums paid by both units and individuals when employees earn labor income within the legal working age. All kinds of insurance stipulate a certain proportion of contributions, such as 8% for old-age insurance, 2% for medical insurance and 0.5% for unemployment insurance. The payment base is the insurance payment base. Because insurance is paid monthly, it is also called monthly payment base.

The fixed individual contribution ratio is 8% of salary, and the unit contribution is 20%. Divide by 8% to know how much social security you have deducted.

for instance

Average local monthly salary 1500 yuan;

1. Your salary is 1200 yuan, and the payment base of old-age insurance is 1200 yuan. According to the ratio of 8%, you have to pay 96 yuan;

2. If your salary is 5,000 yuan, the payment base of old-age insurance is 4,500 yuan, and 500 yuan above is not the base. According to the ratio of 8%, you have to pay 360 yuan;

3. If your salary is 800 yuan, which is lower than 60% of the average monthly salary of the society, it is calculated as 60% of 1500 yuan, and your pension insurance contribution base is calculated as 900 yuan, and you have to pay 72 yuan at 8%;

In the future, your pension will be calculated according to the average monthly salary of the society at that time * your payment period * 1%+ your total payment/120 (specific provisions vary from region to region, and there are corresponding regulations in each region).

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

Article 12 The employing unit shall pay the basic old-age insurance premium according to the proportion of the total wages of employees stipulated by the state and record it in the basic old-age insurance pooling fund.

Employees shall pay the basic old-age insurance premium in accordance with the proportion of wages stipulated by the state and record it in their personal accounts.

Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employing unit and other flexible employees who have participated in the basic old-age insurance shall pay the basic old-age insurance premiums in accordance with state regulations and record them in the basic old-age insurance pooling fund and individual accounts respectively.