How is the payment index of social security calculated?

Calculation formula of individual contribution index: Divide the annual contribution base of the insured person by the average salary of the local workers who started the bridge in the previous year to get the contribution wage index of the year of payment, and calculate it once a year. When you retire, add up the annual payment wage index and divide it by the actual payment period.

The base of the insured person's contribution is 800 yuan, and the average salary of the morning staff in the local area last year is 1200 yuan, so the individual contribution index of the insured person can be calculated as 800÷ 1200=0.6667.

The average contribution wage index is closely related to the pension level. The higher the average contribution wage index, the higher the pension benefits.

Individual average payment index reflects the average level of employees' payment wages during the whole payment period or several consecutive payment periods, and is an important index for calculating excess pension (pension). The determination of payment wages is actually the confirmation of the total wages of employees.

Total wages refer to the total amount of labor remuneration paid directly by each unit to all employees of the unit within a certain period of time. What net income of employees enters the total wages and what income does not enter the total wages is clearly defined in the provisions of the National Bureau of Statistics on the composition of the total wages.

Legal basis:

Article 15 of the Social Insurance Law stipulates that 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.