Will the reduction of social security contribution base affect pensions?

The reduction of social security contribution base will affect pension.

The social security payment base is 60% to 300% of the average social wage. Social insurance refers to a social and economic system that provides income or compensation for people who lose their ability to work, are temporarily unemployed or suffer losses due to health reasons. The main items of social insurance include endowment insurance, medical insurance, unemployment insurance, industrial injury insurance and maternity insurance.

The social insurance plan is organized by the government, forcing a certain group to use part of its income as social insurance tax (fee) to form a social insurance fund. Under certain conditions, the insured can get fixed income or loss compensation from the fund, which is a redistribution system with the goal of ensuring material and labor reproduction and social stability. Social insurance is the core content of social security system.

legal ground

Article 12 of the Social Insurance Law of People's Republic of China (PRC), the employing unit shall pay the basic old-age insurance premium in proportion to the total wages of its employees as stipulated by the state, and record it in the basic old-age insurance pooling fund. Employees shall pay the basic old-age insurance premium in accordance with the proportion of wages stipulated by the state and record it in their personal accounts. Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employing unit and other flexible employees who have participated in the basic old-age insurance shall pay the basic old-age insurance premiums in accordance with state regulations and record them in the basic old-age insurance pooling fund and individual accounts respectively. Article 60 The employing unit shall declare on its own and pay social insurance premiums in full and on time. Except for legal reasons such as force majeure, the payment shall not be postponed or reduced. The social insurance premiums that employees should pay shall be withheld and remitted by the employer, and the employer shall inform me of the details of paying social insurance premiums on a monthly basis. Individual industrial and commercial households without employees, part-time employees who have not participated in social insurance in the employing units and other flexible employees can pay social insurance premiums directly to the social insurance premium collection agencies.