The relationship between social security and wages

Legal analysis: Social security individual contributions are generally paid according to a certain proportion of pre-tax wages, and the general proportion is around 20% (slightly different from place to place). In social insurance, all expenses are calculated based on the average annual salary of employees in the previous year (the first month's salary or the salary agreed in the labor contract is the payment base for new employees), and are paid by the unit and individual employees respectively. The prescribed ratio is probably: pension: 20% for the unit and 8% for the individual. Unemployment: unit 2%, individual 1%. Medical treatment: 6-4% for units and 2-4% for individuals. Work injury: unit 1%, individual 0%. Birth: unit 1%, individual 0%. There may be slight changes from place to place. A gold is generally 8%- 12% of the unit, and so is an individual. The calculation formula of individual tax on wage income is: tax payable = (wage and salary income-"five insurances and one gold"-deduction) × applicable tax rate-quick deduction.

Legal basis: Article 12 of the Social Insurance Law of People's Republic of China (PRC), the employing unit shall pay the basic old-age insurance premium in proportion to the total wages of its employees as 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.