How to set the social security base for a new employee from May

The contribution base for newly recruited employees is determined by the actual wage income of the first full month, and if the first month is less than a month, it is calculated according to the actual wage of the next full month.

From May 2013, according to the "Letter on Determination of Individual Contribution Base for Insured Employees", the contribution base for an insured employee shall be determined based on the monthly average of his/her wages and salaries declared for personal income tax in the previous year, and the contribution base shall remain unchanged for one year in principle.

If the taxable wage and salary income is lower than the lower limit of the contribution base, the deduction of social security contributions will be calculated according to the lower limit of the contribution base; if the taxable wage and salary income is higher than the upper limit of the contribution base, the deduction of social security contributions will be calculated according to the upper limit of the contribution base.

The difference in the contribution ratio of each type of insurance premiums can be referred to the home page of this website-Payment Service-Social Insurance Premiums-Payment Notice-Social Insurance Type. The upper and lower limits of the contribution base for each type of social security contributions can be found on the home page of this website - Payment Services - Social Security Contributions - Payment Instructions - Guidelines for Payment of Contributions -

2012 Comparison Table of the Upper and Lower Limits of the Contribution Base for Each Type of Social Security Contributions in the Year of Social Security.

If an employee is newly recruited in the same year, the insured organization shall declare the contribution salary for the insured person according to the taxable wages and salary tax items of the month when the insured person's starting salary should be declared for personal income tax.

The contribution base declared by the insured unit shall be confirmed by the signature of the insured employee himself/herself or by means of public announcement.

If a contributing unit fails to make a declaration in accordance with the regulations, the social insurance agency may temporarily determine the contribution base at 110 percent of the monthly contribution base of the previous year.

The contribution base is an important calculation basis for participants to enjoy social insurance benefits. After a worker participates in social insurance, the social security agency establishes a lifelong basic pension insurance individual account and medical insurance individual account for him. The higher the employee's contribution base, the greater the amount of money stored in his or her individual account, the more medical expenses at his or her disposal, and the higher the pension he or she receives upon retirement. The concealment, omission or under-reporting of the contribution base by the insured units and the insured persons will directly reduce the level of enjoyment of the social insurance benefits of the insured persons

The monthly contribution base for the social insurance is generally determined according to the monthly average value of the annual salary of the employees in the previous year, which is determined once a year, and will not be changed for one year after it is determined.

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