What is the relationship between minimum wage, social wage and social security contribution base?

The average wage index of employees is an important basis for relevant departments to formulate social insurance collection standards, calculate basic pensions for retirees, formulate minimum wage standards and determine judicial compensation for personal injuries, which is related to the vital interests of workers and employers.

Social security payment base, also known as social insurance payment base, is the basis for insured units and insured persons to pay social insurance premiums. According to the salary income of employees in the previous year. Considering the different levels of economic development in different parts of the country, the state only stipulates the proportion of paying various social insurance premiums, and the payment parameter multiplied by the payment proportion is the actual payment amount. Finally, it depends on the specific company.

The social security base is directly linked to wages. The calculation method of social security base is: if your salary is lower than the minimum social security base, pay it according to the minimum base. If it is higher than the minimum base, it shall be paid according to the actual average salary of the previous year. New employees take the first month's salary as the base; The social security base of old employees is adjusted to the average monthly salary of the previous year as the base. If the salary is lower than or higher than the local minimum or maximum social security base, the minimum or maximum social security base shall be used as the payment base.