Does the annual salary before tax include five insurances and one gold?

The annual salary before tax does not include five insurances and one gold paid by the company, including five insurances and one gold paid by individuals.

Pre-tax annual salary refers to the total income of employees before deducting the five insurances and one gold paid by individuals, excluding the five insurances and one gold paid by the company for employees. Five insurances and one gold are shared by employers and employees, which are divided into two parts: one part is paid by individuals and the other part is paid by enterprises. When calculating individual income tax, the five insurances and one gold paid by the individual should be deducted from the pre-tax salary, while the part paid by the company is not included in the pre-tax income of the individual. The proportion of five insurances and one gold varies from region to region, but usually the proportion paid by enterprises is greater than that paid by individuals, and the part paid by enterprises is included in the personal social security account.

Composition of five insurances and one gold:

1. Old-age insurance: providing basic living security for employees after retirement;

2. Medical insurance: it is used to reduce the cost burden of employees seeking medical treatment due to illness;

3. Unemployment insurance: providing living allowance for unemployed workers for a certain period;

4. Work injury insurance: provide medical and economic assistance to employees when they are injured or suffer from occupational diseases;

5. Maternity insurance: give certain economic compensation to female employees for childbirth;

6. Housing accumulation fund: It aims to help employees solve housing problems and improve their quality of life.

To sum up, the annual salary before tax refers to the total income of employees before deducting the five insurances and one gold that should be paid by individuals, excluding the five insurances and one gold paid by the company for employees. Personal income tax should be calculated by deducting five insurances and one gold paid by individuals from pre-tax wages, and the part paid by the company is not included in personal pre-tax income. Five insurances and one gold are shared by the employer and employees. Under normal circumstances, the proportion paid by enterprises is greater than that paid by individuals, and it is included in the personal social security account.

Legal basis:

Provisions on the composition of total wages

Article 4

The total salary consists of the following six parts:

Hourly wages;

Piece rate;

Bonus;

Allowances and subsidies;

Overtime pay;

Wages paid under special circumstances.