Social security individual account and overall account

The difference between social security individual account and overall account is as follows:

1, with different concepts: the overall account refers to the funds of various social insurance projects; Personal account records the part paid by the insured and the part paid by the unit, as well as the interest of these two parts;

2. Different purposes: the money in the overall account is not owned by the individual, and is mainly used to distribute pensions or funeral subsidies and pensions to their survivors on a monthly basis; Personal account is the main basis for the insured to receive personal account-related treatment when going through retirement procedures;

3. Different sources of funds: the funds of the overall account come from the payment of flexible employees, the payment of enterprises, the transfer of state-owned enterprises and fund investment; Personal accounts are funded by individual contributions, such as employees paying 8% into personal accounts every month.

Social security contribution ratio:

1, individual contribution ratio: the individual contribution ratio refers to the part of social security fees paid by individual employees according to the specified ratio;

2. Unit contribution ratio: The unit contribution ratio refers to the part of social security fees paid by the employer for employees according to the prescribed proportion;

3. Proportion of government subsidies: In some cases, the government will subsidize the social security expenses of specific groups or industries to form a proportion of government subsidies;

4. Proportion of investment income of social security fund: the income obtained by social security fund through investment operation will also become part of the income of social security fund.

To sum up, there are significant differences in concepts, uses and sources of funds between individual social security accounts and overall social security accounts: individual accounts record the expenses and interests transferred by individuals and units to receive retirement benefits, and overall social security accounts are composed of multi-party funds for issuing pensions and related subsidies, which embodies the principle of social assistance.

Legal basis:

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

Article 11

The basic old-age insurance combines social pooling with individual accounts. The basic old-age insurance fund consists of employers, individual contributions and government subsidies.

Article 12

The employing unit shall pay the basic old-age insurance premium according to the proportion of the total wages of its employees stipulated by the state, and record it in the basic old-age insurance pooling fund. Employees shall pay the basic old-age insurance premium in accordance with the proportion of wages stipulated by the state and record it in their personal accounts. Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employing unit and other flexible employees who have participated in the basic old-age insurance shall pay the basic old-age insurance premiums in accordance with state regulations and record them in the basic old-age insurance pooling fund and individual accounts respectively.