What is the social security ceiling?

Legal analysis: the upper limit of the payment base means that the part where the wage income of employees exceeds the arithmetic average monthly wage of employees in provinces and cities in the previous year by more than 300% is not included in the payment base.

The lower limit of the payment base refers to that the wage income of employees is lower than 60% of the arithmetic mean of the average monthly wage of employees in provinces and cities in the previous year, and 60% of the arithmetic mean of the average monthly wage of employees in provinces and cities in the previous year is the payment base.

There are upper and lower limits on the social insurance payment base, and the minimum can not be lower than 60% of the average monthly salary of employees in the city last year. Employees in private enterprises, individual industrial and commercial households and urban non-registered employees shall not be less than 50%, and those in private enterprises as legal persons, shareholders and individual industrial and commercial households shall not be less than 100%.

The maximum can not be higher than 300% of the average monthly salary of employees in the city last year. The average wage of employees in this Municipality is published annually by the Municipal Bureau of Statistics. In the same payment year, the payment base is fixed for one year and will not be changed halfway. From April to June every year, the employer shall declare the social insurance payment base of its employees in the new year according to the notice of the local social insurance agency.

Legal basis: People's Republic of China (PRC) Social Insurance Law.

Article 2 The state establishes social insurance systems such as basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance, so as to guarantee citizens' right to receive material assistance from the state and society in accordance with the law in case of old age, illness, industrial injury, unemployment and maternity.

Twenty-sixth basic medical insurance for employees, new rural cooperative medical care and basic medical insurance for urban residents shall be implemented in accordance with state regulations.

Twenty-eighth medical expenses that meet the basic medical insurance drug list, diagnosis and treatment items, medical service facilities standards and emergency treatment and rescue shall be paid by the basic medical insurance fund in accordance with state regulations.