How to calculate social security pension

Calculation method of social security pension:

1. Overall pension: the monthly standard of basic pension is based on the average monthly salary of local employees in the previous year when the insured retires and the average indexed monthly salary of himself, and l% is paid every 1 year. The calculation formula is: basic pension = (the average monthly salary of local employees in the previous year when the insured retires+the average monthly payment salary of the insured) /2* individual cumulative payment years *l%. And my indexed monthly average payment salary = the average monthly salary of employees in the whole province in the previous year when the insured retires * my average payment salary index.

2. Personal account pension: the monthly standard of personal account pension is the amount stored in my personal account divided by the number of months calculated.

Commercial pension collection method:

1. Fixed principal and interest collection: pay the total premium to the insured in the form of fixed principal and interest every month until the total premium is used up;

2. installment payment: pay the total premium paid to the insured in the form of fixed principal and interest every time until the total premium is used up;

3. Full lump sum collection: that is, the total premium paid is paid to the insured in one lump sum.

To sum up: the calculation method of old-age insurance in social security depends on different local policies, and the pension base will be different. Therefore, the pension insurance premiums received by different places will be different.

Legal basis:

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

Article 15

The basic pension consists of overall pension and individual account pension.

The basic pension is determined according to factors such as individual cumulative payment years, payment wages, average salary of local employees, personal account amount, average life expectancy of urban population, etc.