What is the relationship between the social security contribution base and the pension

The relationship between the social security contribution base and the retirement pension is mutual. The retirement pension refers to a person who retires from a job because of age or other factors. The company or employer has to give a one-time larger payment. Retirement has different designated age or seniority in different places and occupations, and employees who have exceeded this age are considered unfit to continue working even if they want to.

What is the relationship between the social security contribution base and the retirement pension

The contribution base (index) is an important factor in the calculation of the basic pension, which has a direct impact on the amount of the basic pension.

Basic pension = basic pension Individual account pension:

1, basic pension

Basic pension = the average monthly salary of employees in the previous year in the coordinated area at the time of retirement The average monthly salary of the person's indexed contributions)/2 × years of contributions × 1%;

2, individual account pension

Calculation method

Generally, the previous year's income of the person's salary as the contribution base.

(1) the employee's salary income is higher than 300% of the average salary of local employees in the previous year, 300% of the average salary of local employees in the previous year for the contribution base;

(2) the employee's salary income is lower than 60% of the average salary of local employees in the previous year, 60% of the average salary of local employees in the previous year for the contribution base;

(3) the employee's salary in 300% -60% of the average salary of employees in the previous year, according to the actual declaration. Employee salary income can not be determined, its contribution base according to the local labor administration department announced the average salary of local employees in the previous year for the contribution wage to determine.

Every year, the social security will be in a fixed time (March or July, different places) approved base, according to the employee's average monthly salary of the previous year to declare a new base, you need to prepare the payroll these certificates.

A pension is when a person retires from a job because of age or other factors. The company or employer has to give a larger lump sum to the person who retires from a job because of age or other factors. Retirement has different designated ages or seniority in different places and occupations. Employees who are older than this age are considered unfit to continue working, so they can choose whether or not to continue working, and the employer must give a large sum of money as a reward for the laborer's hard work over a lifetime and as a source of old age and medical care after he or she is no longer working.

In practice, the way in which companies finance their pensions can be categorized into funded and unfunded retirement schemes.

Deposited funds

An enterprise withdraws its pension fund and gives it to an independent trust organization, such as a bank or an insurance company, for safekeeping and use, and the trust organization pays out the pension from the fund when the employee retires. The enterprise may not withdraw the pension fund unless it has fully met its obligation to pay the pension.

Retirement without a fund

The enterprise has not withdrawn the pension fund and delivered it to the trust organization for safekeeping and use, or the enterprise has withdrawn the pension fund but kept it for safekeeping and use on its own without delivering it to the trust organization for safekeeping and use, and at the time of the employee's retirement, the enterprise finances the retirement pension by its own funds. This approach, compared to the retirement of the placement of funds, the employee's pension is not guaranteed.

The issue of pension often occurs in real life, for the social security payment base, the relevant enterprises will be introduced, otherwise they will lose the legal basis, but in the handling of the issue, often people will ignore the specific situation, so they need to know more about the relevant provisions of the better protection of their rights and interests, to reduce the loss.