What is the difference between individual and unit payment of pension insurance?

The main differences between individual and unit payment of social security are as follows:

1, the nature of the different: unit payment of social security is mandatory, if there is a legal labor relationship, but the unit is not in accordance with the provisions of the payment of social security to employees, then it is illegal. However, if a flexible employee pays for his own social security, then there is no mandatory, the insured person can voluntarily choose whether to pay for social security;

2, the different types of insurance: the unit of social security for urban workers include five insurance, that is, old age insurance, medical insurance, industrial injury insurance, maternity insurance, unemployment insurance, five types of insurance; and their own social security for urban workers to pay for their own identity as a flexible employee, usually can only be The urban workers' social security includes five types of insurance, i.e. pension insurance, medical insurance, work injury insurance, maternity insurance and unemployment insurance; while the urban workers' social security paid by themselves as flexible employees usually can only pay two types of insurance, i.e. pension insurance and medical insurance, and unemployment insurance in a few areas;

3. The base of contribution is different: the base of contribution is calculated according to the average salary of the employee himself in the previous year, while the workers who pay social security by themselves as flexible employees can choose the base of contribution suitable for themselves according to their own actual situation. The contribution base range is usually 60%-300% of the local average social wage in the previous year;

4. The proportion of personal contributions is different: whether it is employee pension insurance or medical insurance, the proportion of personal contributions of flexibly employed persons is relatively high. Taking the employee pension insurance as an example, the unit pays social security, the unit contribution ratio of the employee pension insurance is 16% of the contribution base, and the employee's personal contribution ratio is 8%, which means that the unit will bear most of the costs, and the employee only needs to bear a small portion of the individual; while the flexible employment personnel pay their own social security, they need to bear the full cost, the employee pension insurance contribution ratio is usually 20%, and the contribution ratio in some areas will be slightly higher. The proportion will be slightly higher, of which 12% of the contribution to the pension insurance account, 8% of the contribution to the personal account;

5, pension insurance retirement age may be different: according to the current provisions, the unit to pay social security, men retire at 60 years old, female workers retire at 50 years old, female cadres retire at 55 years old; own social security, flexible employment men retire at 60 years old, flexible employment women retire at 55 years old, flexible employment women retire at 55 years old, flexible employment men retire at 60 years old, flexible employment women retire at 55 years old, flexible employment women retire at 55 years old, flexible employment women retire at 55 years old. Flexibly employed women retire at 55 years old, some cases allow female flexibly employed persons to retire at 50 years old, and a small number of regions have unified provisions for female flexibly employed persons to retire at 50 years old, specific to the local policy shall prevail. The same method of calculating pensions for employees is the same as that for employees of enterprises, which is to pay more and more, so if conditions allow, you can try to pay more and more social security.

The relationship and difference between wages and pensions:

The relationship between wages and pensions has different funding channels.

1, the pension is generally the national financial or local financial expenses, did not participate in the pension insurance social coordination of retirees such as civil servants, institutions, excluding institutions enterprise management of the unit's retirement treatment referred to as pensions or retired cost of living;

2, the pension is a social insurance fund, to participate in the social coordination of the pension insurance of retirees' retirement treatment is collectively referred to as pensions.

In summary, changes in the average social wage will have a direct impact on the level of the pension, if the average social wage increases, then the pension will increase accordingly; and if the average social wage decreases, then the pension will decrease accordingly.

Legal basis:

Article 23 of the Social Insurance Law of the People's Republic of China

Employees shall participate in the basic medical insurance for employees, and shall pay the basic medical insurance premiums by the employer and the employees in accordance with the state regulations***.

Individual industrial and commercial households without employees, part-time employees who have not participated in the basic medical insurance for employees in their employing units, and other flexibly employed persons may participate in the basic medical insurance for employees, and individuals shall pay the basic medical insurance premiums in accordance with the state regulations.