What does it mean to increase the social security base?

Legal analysis: the average wage of employees is not only the basis of social security payment, but also the base of pension calculation and payment, so the base of payment has an impact on pension insurance benefits and fund income. At present, human and social departments at all levels determine the upper and lower limits of various social insurance payment bases according to the average wages of employees in urban non-private units released by the statistical department. Therefore, after the statistics department announced the average wage of employees in the previous year, local social security institutions will also determine the upper and lower limits of the payment base according to the new average wage.

For a few employees with low wages and slow salary increases, the impact of the increase in the payment base does exist. Due to the increase in the average wage of employees, the upper and lower limits of the payment base have also increased accordingly. When my salary is lower than the lower limit or higher than the upper limit, personal contributions will be affected, which is why low-income people feel overpaid and high-income people feel underpaid. In recent years, the state has extended the scope of social insurance subsidy policy to flexible employees, so as to appropriately reduce the payment burden of vulnerable groups.

Legal basis: The General Office of the State Council issued the Notice on Printing and Distributing the Comprehensive Plan for Reducing the Social Insurance Rate, pointing out the policy of adjusting the social insurance payment base. Adjust the calculation caliber of the average wage of employed people. All provinces should calculate the average wage of employees in full-caliber urban units by weighting the average wage of employees in non-private units in cities and towns and the average wage of employees in private units in cities and towns in this province, check the upper and lower limits of social security individual contribution base, and reasonably reduce the social security contribution base of some insured persons and enterprises. After adjusting the calculation caliber of the average wage of employed persons, all provinces should formulate transitional measures for the calculation and payment of basic pensions to ensure the smooth convergence of the treatment level of retirees. Improve the payment base policy for individual industrial and commercial households and flexible employees. Individual industrial and commercial households and flexible employees can participate in the basic old-age insurance for enterprise employees, and choose an appropriate payment base between 60% and 300% of the average salary of employees in full-caliber urban units in this province.