What is basic endowment insurance?

The basic old-age insurance, also known as the national basic old-age insurance, is a compulsory old-age insurance system to protect the basic needs of retirees according to the unified national policies and regulations.

The basic old-age insurance combines social pooling with individual accounts, and the expenses are shared by enterprises and individual employees.

Basic old-age insurance payment method:

1, individual employees pay the basic old-age insurance premium.

(1) Employee individual contribution base. The individual contribution base is the average monthly salary of employees in the previous year. The average monthly salary should be calculated according to the items listed in the statistics table of total wages stipulated by the National Bureau of Statistics, including wages, bonuses, allowances, subsidies and other income. The part where the average monthly salary exceeds 300% of the average monthly salary of employees in the whole province in the previous year is not included in the base of individual contribution salary; If it is lower than 60% of the average monthly salary of employees in the whole province in the previous year, it will be calculated at 60%.

(2) The proportion of employees' individual contributions. Since June 65438+ 10/month, 2005, employees have paid 8% of the individual contribution base. Individuals who retire or resign do not pay fees.

2. Enterprises pay the basic old-age insurance premium.

In principle, the enterprise payment base is the total salary of the unit in the previous year. If the total unit wage is lower than the sum of the individual payment wages of all insured employees, the sum of the individual payment wages of all insured employees shall be used as the payment base. From June 2005, 65438+1 October1,the enterprise contribution rate was 20%.

The process of endowment insurance is as follows:

1. The applicant submits the application materials to the Social Security Bureau, and the handling personnel of the Social Security Bureau will review the materials and the applicant's conditions on the spot;

2, meet the conditions of immediate processing, and print the "flexible employment personnel to participate in the basic old-age insurance approval form", a copy of the applicant for the record, the other one signed by the applicant to confirm the record of our bureau;

3, do not meet the conditions will not be accepted, and explain the reasons to the applicant.

To sum up, the basic old-age insurance is a social insurance system established and implemented by the state according to laws and regulations. Under this system, employers and workers must pay endowment insurance premiums according to law. After workers reach the retirement age stipulated by the state or quit their jobs for other reasons, social insurance agencies shall pay them pensions and other benefits according to law to ensure their basic livelihood.

Legal basis:

Article 11 of the Social Insurance Law of People's Republic of China (PRC)

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.