How to calculate the Shanghai social security pension

Personal contribution period, contribution base and contribution ratio.

I. Understanding the social security pension system

The social security pension system is a social security system set up by the state to protect the basic livelihood of workers after retirement. In Shanghai, the calculation of social security pensions follows certain rules and standards to ensure fairness and reasonableness.

Two elements of social security pension calculation

1, the number of years of contributions: the number of years an individual has accumulated in the process of paying social security is one of the important factors in the calculation of social security pension. The longer the number of years of contributions, the higher the pension entitlement.

2. Contribution base: The wage base selected by an individual in paying social security is also a key factor affecting the calculation of social security pension. The higher the contribution base, the greater the individual's contribution to the social security payment, and the higher the pension entitlement accordingly.

3, the proportion of contributions: according to the policy, individuals and units need to pay a certain proportion of social security costs. The level of the contribution ratio will also have a direct impact on the calculation of the social security pension.

Three, the specific calculation method

Shanghai social security pension calculation using the formula method, the specific formula is: pension = basic pension + personal account pension. Among them, the basic pension is related to the number of years of individual contributions, the contribution base and the city's average monthly salary of employees, etc.; the personal account pension is related to the amount of individual contributions and investment returns, etc.

Fourth: Adjustment and Payment

Social security pension payment standards will be adjusted in accordance with national policies and Shanghai's economic development. The Shanghai Municipal Government will make regular or irregular adjustments to the social security pensions according to the actual situation in order to protect the basic needs of retirees.

In summary:

In Shanghai, the calculation of social security pension involves a number of factors such as the number of years of contribution, contribution base and contribution ratio. The specific calculation method is based on a formulaic approach, which includes two parts: the basic pension and the personal account pension. The government will make timely adjustments to the social security pensions according to the actual situation in order to protect the basic living needs of retirees.

Legal basis:

The Social Insurance Law of the People's Republic of China

Article 15 stipulates:

The basic pension consists of a coordinated pension and an individual account pension. The basic pension is determined on the basis of an individual's accumulated years of contributions, the salary paid, the average salary of local workers, the amount of the individual account, and the average life expectancy of the urban population.

Shanghai Municipal Employees' Basic Pension Insurance Measures

Article 12 stipulates:

When a participant meets the retirement conditions stipulated in these Measures and reaches the legal retirement age, the basic pension is paid in segments: the basic pension, the individual account pension, and the transitional pension. The monthly standard of the basic pension is based on the average of the average monthly salary of the employees and the average indexed monthly contribution salary of the employees in the previous year in the city, and 1% will be paid for every one year of contribution. The monthly standard of personal account pension is the amount of personal account storage divided by the number of months of the state regulations.