What are the benefits of raising the social security contribution base

The advantage of a high social security base is that workers can get a higher pension , because the pension after retirement also needs to be calculated according to the social security base. When the contribution base is high, more contributions are made, the more money is deposited in the personal account, and the larger the amount of future pension will come from the personal account.

The social security contribution base, referred to as the social security base, is the employee's social insurance contribution base in a social security year. It is determined on the basis of the monthly average of all wage income earned by the employee from January to December of the previous year. The social insurance contribution base is an important basis for calculating the social insurance contributions to be paid by the employer and its employees and the social insurance benefits of the employees, and there is an upper limit and a lower limit, with the specific amount depending on the actual situation in each region.

(1) If the salary income of an employee is higher than 300% of the average salary of the local employees in the previous year, 300% of the average salary of the local employees in the previous year shall be used as the contribution base;

(2) If the salary income of an employee is lower than 60% of the average salary of the local employees in the previous year, 60% of the average salary of the local employees in the previous year shall be used as the contribution base;

(3) If the salary of the employee is between 300% and 60%, the amount shall be determined according to the actual situation of each region. between 300% and 60% shall be declared on a factual basis. When the employee's salary income cannot be determined, his contribution base is determined by the average salary of local employees in the previous year announced by the local labor administration department as the contribution salary. Every year the social security will be in a fixed time (March or July, different places) approved base, according to the employee's average monthly salary of the previous year to declare a new base, you need to prepare the payroll these certificates.

Second, then the social security contribution base increased on us in the end is good?

First of all, we need to understand the usefulness of social security, social security is related to the pension insurance, medical insurance, maternity insurance, work injury insurance and unemployment insurance. The more money you pay now, the more you will accumulate in your personal account and the more money in your account, the more you will receive after retirement; the more you will receive the monthly pension; the more you will receive and the more you will pay for the unemployment insurance, the more you will receive and the more you will pay for the base of the contribution.

In the short term, an increase in the base figure for social security contributions will lower our actual wages; in the long term, an increase in social security contributions is good for us, and it is related to the treatment of the insured after retirement. Companies are reluctant to pay social security with us, because the higher the social security contribution base, the more the company pays, then it is not cost-effective for the company, but they have to pay, so many companies will pay you according to the minimum standard. This way, the company pays less, the employee pays less, the employee's actual salary in hand becomes more, but the impact is their own future pension and some other maternity insurance, etc..

Legal basis:

The Social Insurance Law of the People's Republic of China

Article 12 The employer shall pay the basic pension insurance premiums in accordance with the proportion of the total wages of the employees of the employer as stipulated by the State, and shall credit the basic pension insurance fund.

Employees shall pay basic pension insurance premiums in accordance with the proportion of their own wages prescribed by the State and credited to their individual accounts.

The Social Insurance Law of the People's Republic of China

Article 15 The basic pension consists of the coordinated pension and the individual account pension.

The basic pension is determined on the basis of the individual's accumulated years of contribution, the contribution wage, the average wage of local workers, the amount of the individual account, and the average life expectancy of the urban population.

The Social Insurance Law of the People's Republic of China

Article 35 Employers shall pay work-related injury insurance premiums in accordance with the total wages of the employees in the organization and at the rate determined by the social insurance agency.