Relationship between social security contribution and pension

The relationship between social security contributions and pensions is as follows:

1. The higher the social security contribution base, the more the old-age insurance premiums paid by individuals and units, and the corresponding increase in pensions received after retirement;

2. The longer the cumulative payment period, the more pensions accumulated in individual accounts, and the richer the pensions;

3. The calculation of pension will also take into account factors such as the average salary of local employees and the average life expectancy of urban population;

4. Persons who have reached the statutory retirement age and paid for fifteen years can receive the basic pension on a monthly basis.

Components of social security:

1, basic old-age insurance: providing basic living security after retirement;

2. Basic medical insurance: reduce medical expenses due to illness;

3. Work-related injury insurance: providing compensation for work-related accidents;

4. Unemployment insurance: providing basic living expenses during unemployment;

5. Maternity insurance: to guarantee the basic income and medical expenses of female employees during childbirth.

To sum up, social security contributions are directly related to pensions. The higher the payment base, the longer the payment period, and the more pensions individuals receive. At the same time, the average salary of local employees and the average life expectancy of urban population will also be considered. Those who reach the statutory retirement age and have paid the accumulated contributions for 15 years can receive the basic pension on a monthly basis.

Legal basis:

People's Republic of China (PRC) social insurance law

Article 15

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.