What is the difference between the first and second social security grade

Social security contribution grade is divided into: the lowest grade (40%), first grade (60%), second grade (80%), third grade (100%) four grades. The difference is that the low-grade social security contributions are low, into the individual account fund balance is also less, the future calculation of pensions, converted out into the formula of the average index of contributions is low, resulting in receiving less pension, and the proportion of contributions to the high social security retirement pension received higher than the low-grade social security.

The Social Insurance Law, Article 2 of the State to establish a basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance, maternity insurance and other social insurance system, to protect the citizens in old age, disease, industrial injury, unemployment, childbirth and other situations in accordance with the law from the State and society to obtain the right to material help.