What is the significance of paying wages to social security?

Payment of wages refers to wage income that can be included in the scope of paying social insurance premiums. According to the current policy, wage payment refers to the wages included in the total wage statistics according to the provisions of the national statistical department.

Its characteristic is that it depends on the actual situation of wage income, and there is no upper or lower limit. The payment base, also known as the social insurance premium base, is the basic data used to verify the actual payment of social insurance premiums by units or individuals on the basis of paying wages. Its characteristic is that there are upper and lower limits on the amount, and the setting of the upper and lower limits of the payment base changes with the policy adjustment.

The determination of payment wages is actually the confirmation of the total wages of employees. Total wages refer to the total amount of labor remuneration paid directly by each unit to all employees of the unit within a certain period of time. What income employees earn into the total wages and what income they don't earn into the total wages are clearly defined in the regulations of the National Bureau of Statistics on the composition of the total wages. When the social security agency approves the annual payment base, it requires the employer to report the approved wages according to the provisions of the total wages, not the payment base.

The payment base generally refers to the payment base of social security.

The social security payment base is 60%-300% of the average social wage. For example, the average social wage 1000 yuan, and the payment base can be 600 yuan-3,000 yuan. Take the situation in Shanghai in 2004 as an example. In 2003, the average monthly social wage was 1847 yuan.

If your monthly salary exceeds 1847*3=554 1 yuan. Then the social security payment base is 554 1 yuan; If your monthly salary is less than1847 * 60% = 1 108.2 yuan, the social security payment base is1108.2 yuan. If the salary is between 1 108.2 and 554 1 yuan, the base is your salary.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.