The relationship between the social security contribution base and wages

The relationship between the social security base and wages:

The relationship between the base for social security contributions and the total wages is proportional, the former is determined by a certain percentage of the latter, and the social security base and wages are directly linked.

I. According to the Social Insurance Law, the base for social security contributions by an employer is determined by the total wages of its employees, and the base for employee contributions is determined by the employee's own wages.

Second, but in practice, it is calculated by the average monthly salary of the previous year, and there is an upper limit and lower limit, the specific amount according to the actual situation in each region.

Third, the relationship between the base of social security payments and total wages is proportional, the former is determined by a certain percentage of the latter. Generally, if the average monthly salary of the person is less than 60% of the average monthly salary of the local workers, the contribution is 60% of the average monthly salary of the local workers; if the average monthly salary of the local workers is more than 300% of the average monthly salary of the local workers, the contribution is 300% of the average monthly salary of the local workers, and the exceeding portion is not credited to the base of the contributing salary.

Legal basis:

Article 10 of the Social Insurance Law of the People's Republic of China

Employees shall participate in basic pension insurance, and shall pay basic pension insurance premiums by the employing unit and the employees*** together.

Individual industrial and commercial households without employees, part-time employees who have not participated in basic pension insurance with their employing units, and other flexibly employed persons may participate in basic pension insurance and pay basic pension insurance premiums by themselves.

1 Article 12 of the Social Insurance Law of the People's Republic of China

Employers shall pay basic pension insurance premiums in proportion to the total wages of their employees as prescribed by the State, which shall be credited to the Basic Pension Insurance Coordination Fund.

Employees shall pay basic pension insurance contributions in the proportion of their own wages as prescribed by the State, which shall be credited to their individual accounts.

Article 15 of the Social Insurance Law of the People's Republic of China

The basic pension consists of the coordinated pension and the individual account pension.

The basic pension is determined on the basis of the individual's accumulated years of contribution, the contribution wage, the average wage of local workers, the amount of the individual account, and the average life expectancy of the urban population.

Article 35 of the Social Insurance Law of the People's Republic of China

Employers shall pay work-related injury insurance premiums in accordance with the total wages of the employees in the organization and at a rate determined by the social insurance agency.

2. Article 10 of the Regulations on Work-Related Injury Insurance

Employers shall pay work-related injury insurance premiums on time. Employees do not pay work injury insurance premiums.

The amount of work-related injury insurance premiums paid by the employer shall be the product of the total wages of the employees multiplied by the contribution rate of the employer.

For industries that are difficult to pay work injury insurance premiums according to the total wages, the specific ways of paying work injury insurance premiums shall be stipulated by the social insurance administrative department of the State Council.