Does social security have anything to do with wages?

The base of social security payment is closely related to wages, usually the average monthly salary of employees in the previous year is the base of payment. If the average monthly wage of employees is lower than 60% of the local average wage, it shall be paid according to the standard of 60%; Higher than the local average wage of 300%, according to the upper limit of 300% of the payment, the excess is not included in the payment base. Therefore, the level of wages directly affects the determination of the social security payment base, and then affects the social security fees that individuals and units need to pay and the amount of pensions that employees will receive in the future.

Calculation base of social security:

1, the calculation base usually refers to the social security payment base, which is linked to personal salary;

2. The calculation base is often set with reference to a certain proportion of the local average wage of employees in the previous year;

3. The upper and lower limits of social security calculation base may be different in different regions, which is related to the local economic development level and price index;

4. The social security fees payable by individuals shall be calculated by multiplying the calculation base by the corresponding rates;

5. The adjustment of social security calculation base is usually made once a year to reflect the change of social average wage.

To sum up, the base of social security contributions is closely related to wages, and the level of wages directly affects the social security premiums that individuals and units need to pay and the amount of pensions that employees will receive in the future.

Legal basis:

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 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.