What does the social security contribution base mean?

Social insurance refers to the basic pension insurance, unemployment insurance and medical insurance premiums paid by the unit and the individual *** together when the employee obtains labor income within the legal working age, and all kinds of insurance have stipulated a certain contribution ratio, for example, the individual contribution ratio of pension insurance is 8%, the individual contribution ratio of medical insurance is 2%, the individual contribution ratio of unemployment insurance is 0.5%, and the base of the contribution is The base of the contribution is the insurance contribution base, because the insurance is paid monthly, also called the monthly contribution base.

If a labor relationship is formed between a worker and an employer, the worker can enjoy a lot of benefits provided by law. For example, the employer should pay the social insurance for the workers in full and on time. In the payment of social insurance, the amount of payment is determined according to the social security contribution base, then, social security contribution base what does it mean? I have summarized the relevant legal knowledge for you below.

A concept of the social security contribution base

Social insurance refers to the employee in the legal working age to obtain labor income by the unit and the individual *** with the payment of the basic pension insurance, unemployment insurance and medical insurance premiums, a variety of insurance are provided for a certain percentage of the contribution, for example, the proportion of the personal contribution of the pension insurance for 8%, the medical insurance of the individual contribution. For example, the individual contribution rate for pension insurance is 8%, the individual contribution rate for medical insurance is 2%, and the individual contribution rate for unemployment insurance is 0.5%, and the base of its contribution is the insurance contribution base, which is also called the monthly contribution base because the insurance is paid on a monthly basis.

The fixed individual contribution rate is 8% of the salary, the unit contribution is 20%, so you yourself with 8% divided by how much you know you are deducted by the social security.

The monthly contribution base for social insurance is generally determined by the monthly average of the employee's annual salary for the previous year, which is determined once a year, and once it is determined, it will not be changed within one year. According to the regulations, the average monthly salary of the employee in the previous year is the monthly contribution base for social insurance, but if the average monthly salary of the employee in the previous year is too high or too low, i.e., exceeding the upper or lower limit of the social insurance regulations, the part outside the limit can not be calculated as the contribution base.

According to the regulations, the part of the employee's average monthly salary in the previous year that is higher than 300% of the local average social wage is not calculated as the contribution base, but only 300% of the local average social wage; the employee's average monthly salary in the previous year that is lower than 60% of the local average social wage is required to be calculated according to 60% of the local average social wage as the contribution base.

Second, note

For the employer's payroll form of diversification, employees should pay attention to the following aspects when determining the contribution base:

1, the unit from the wages of the employee directly withholding the payment of social insurance premiums, housing provident fund and personal tax, etc., should be included in the contribution base.

2. The transportation allowance, telephone allowance, lunch allowance, festival expenses and the allowance for special positions such as high temperature, high altitude, underground, poisonous and harmful etc. paid by the unit to individual employees in the form of cash or bank deposits shall be included in the contribution base.

3. The wages paid to individual employees by the unit through the method of after-tax profit commission or dividend shall be included in the contribution base.

4, the implementation of the base salary system of employees, according to the turnover or business performance of the commission earned income, should be included in the contribution base.

5, the implementation of business contracting or expenses, the unit is no longer reimbursement of travel expenses of the employees, 60% of their contracted income should be included in the contribution base.

Three, the upper limit of the contribution base

1, the upper limit of the contribution base refers to the part of the employee's salary income exceeding 300% of the arithmetic average of the average monthly salary of the average employee in the previous year in the province or city is not included in the contribution base;

2, the lower limit of the contribution base refers to the employee's salary income is lower than 60% of the arithmetic average of the average monthly salary of the average employee in the previous year in the province or city is not included in the contribution base. Arithmetic average of 60% of the average monthly salary of employees in the province or city of the previous year, the arithmetic average of the average monthly salary of employees in the city of the previous year, 60% of the contribution base.

3, the social insurance contribution base has upper and lower limits, the minimum can not be less than 60% of the average monthly salary of the city's employees in the previous year (private enterprise employees, individual industrial and commercial employees and non-city urban household employees shall not be less than 50% of the private enterprise legal person, shareholders, owners of individual industrial and commercial households shall not be less than 100%);

4, the maximum can not be higher than the average monthly salary of the city's employees in the previous year 300%. The average wage of the city's employees announced annually by the Municipal Bureau of Statistics. Contributions to the base in the same payment year a certain year, no change in the middle.

5. From April to June every year, the employer should declare the social insurance contribution base for the new year according to the notification from the social insurance agency in the city.

In summary, what does the social security contribution base mean? It means that workers and employers to pay social insurance benchmarks, specifically the local average monthly wage standard in the previous year, on top of this benchmark, the workers and employers to determine their own need to pay the cost.

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