Is it the same for social security individuals and units to pay pensions?

Social security individual contributions are different from pension unit contributions.

Social security paid by individuals is different from that paid by units. The social security paid by individuals is only endowment insurance and medical insurance. In addition to endowment insurance and medical insurance, the unit also pays work-related injury insurance, unemployment insurance and maternity insurance. The proportion of fees paid is also different.

There are differences in the following aspects between social security individual contributions and unit contributions, as follows:

First of all, social security individual contributions refer to individuals paying social insurance premiums for individual pension insurance accounts according to a certain proportion of their wage income. Unit pension refers to the pension paid by the employer for employees, aiming at providing economic security for employees after retirement. Secondly, the amount paid by individuals for social security is determined by their personal income, while the amount paid by units for retirement is determined by employers, usually according to the length of service and salary level of employees. In addition, individual social security contributions are managed by the state, while unit pension contributions may vary from employer to employer. Finally, the account paid by the social security individual belongs to the individual, and the pension paid by the unit is managed and paid by the employer. Generally speaking, there are obvious differences between individual social security contributions and unit contributions in terms of payment methods, amount determination and management ownership.

To sum up, the basic pension is determined according to individual cumulative payment years, payment wages, average salary of local employees, personal account amount, average life expectancy of urban population and other factors, and has nothing to do with social security units or individuals.

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.