How to calculate the social security contribution index, what is the formula?

Individual contribution index formula: by the participant's annual contribution base divided by the local average wage of employees in the previous year, resulting in the year of payment of the contribution wage index, and so calculated once a year, to the time of retirement, the annual contribution wage index added, and then divided by the actual number of years of contributions derived.

The contribution base of the insured person is 800 yuan, and the average salary of the employees in the insured area in the previous year is 1,200 yuan, then the individual contribution index of the insured person can be calculated as 800 ÷ 1,200 = 0.6667.

The average contribution index is closely related to the level of pension, and if the average contribution index is high, the pension will be increased accordingly.

The average individual contribution index reflects the average level of the employee's contribution wage over the entire contribution period or over a number of consecutively calculated contribution periods, and is an important indicator for the calculation of excessive pensions (retirement pensions). The determination of the contribution salary is actually the recognition of the total salary of the employee.

Total wage refers to the total amount of labor remuneration paid directly to all employees of each unit during a certain period of time. Which income of the employees enters into the total wage and which does not is clearly stipulated in the "Regulations on the Composition of the Total Wage" of the National Bureau of Statistics.

How to Calculate the Average Contribution Index for Pension Insurance

(1) The average contribution index is equal to (the deemed contribution index multiplied by the sum of the number of months of deemed contribution plus the actual contribution index) divided by (the number of months of deemed contribution plus the number of months of actual contribution).

(2) Deemed contribution index. Divided into general population and special groups.

The general population, that is, before the end of 1993 to join the work, before the end of 1993 has been in accordance with the provisions of the enterprise pension insurance and contributions to the insured.

The index of deemed contribution is calculated separately according to the co-ordination area where the participants were insured before the end of 1993, among which: the co-ordination area at the municipal level is 1.201, the co-ordination area in Huadu is 0.962, the co-ordination area in Panyu is 1.305, the co-ordination area in Zengcheng is 1.021, and the co-ordination area in Conghua is 0.772

Special group of people, namely, those who participated in the basic old-age pension insurance after January 1, 1994, and those whose contributions were calculated according to the state regulations before participating in the insurance. Those whose continuous years of service calculated in accordance with national regulations before joining the insurance can be regarded as years of contribution, demobilized and rehabilitated soldiers who were resettled to enterprises by the province, and former agency staff who moved to enterprises.

Legal basis:

Article 15 of the Social Insurance Law stipulates that the basic pension consists of a coordinated pension and a personal account pension.

The basic pension is determined according to the individual's accumulated years of contribution, contribution salary, the average salary of local workers, the amount of individual account, the average life expectancy of the urban population and other factors.