The difference between overall balance and individual balance

Overall balance and individual balance are two different concepts in the social insurance system.

Overall balance is a common part of social insurance fund, which is used to pay various insurance benefits; Personal account balance is the balance in the personal account of the insured person, which is used to enjoy specific social insurance benefits.

China's social insurance system includes endowment insurance, medical insurance and unemployment insurance. The insured needs to pay a certain amount of insurance premium every month, which will be divided into overall balance and personal balance. Overall balance refers to the common part of the social insurance fund, which is managed and distributed by the social insurance fund management institution. It consists of a part of the insurance premium paid by the insured, which is used to pay various insurance benefits under the social insurance system, such as pension and medical expenses. The overall balance is allocated according to certain rules and proportions to protect the basic rights and interests of the insured. Personal balance refers to the balance in the personal account of the social insurance fund of the insured. Personal balance is a part of the insurance premium paid by the insured individuals, which is used for individuals to enjoy special treatment under the social insurance system under certain circumstances, such as reimbursement of medical expenses and unemployment insurance benefits. Personal balance is formed according to individual contributions and the accumulation of personal rights and interests, which is independent and operable.

Overall account and pension level have the following relations:

The overall account is managed by the social security fund. Although the overall account does not reflect the direct relationship, there is still an indirect relationship between the two. If you choose to pay more, the employer pays more and the individual pays more, then the funds in the overall account will be higher. On the other hand, the lower the payment, the lower the amount base of the overall account and individual account, and the lower the personal pension. The calculation and payment of pension mainly depends on the payment base, the balance of personal account funds and the payment period. From this perspective, there is a certain indirect relationship between the overall account and the pension level.

To sum up, overall balance and individual balance play different roles in the social security system. The overall balance is used to pay various social security benefits and protect the basic rights and interests of the insured; Personal account balance is the personal account balance of an individual in the social security fund, which is used to enjoy specific social security benefits. The difference between them reflects the publicity of social security system and the independence of individual rights and interests. Understanding and grasping the difference between overall balance and individual balance is very important for the operation of individual and social security system.

Legal basis:

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

Article 11

The basic old-age insurance combines social pooling with individual accounts. The basic old-age insurance fund consists of employers, individual contributions and government subsidies.

Article 12

The employing unit shall pay the basic old-age insurance premium according to the proportion of the total wages of its 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.