Social Security Base Adjustment Method for July 2022

The social security base is adjusted once a year. The adjustment of the contribution base is based on the average social wage of the previous year, so it can only be adjusted after the coordinating area announces the average social wage of the previous year. There are no specific rules on when the adjustment is to be made as the announcement time is not consistent across the region, however, the starting time is January every year. There is an upper and lower limit for the social insurance contribution base, with the minimum being no less than 60% of the average monthly wage of the city's employees in the previous year, and no less than 50% for employees of private enterprises, employees of self-employed business households and employees with non-city urban household registration.

Legal Basis: The Social Insurance Law of the People's Republic of China Article 12

The employer shall pay the basic pension insurance premiums in accordance with the proportion of the total wages of the employees of the employer as stipulated by the State, and shall credit them to the Basic Pension Insurance Co-ordination Fund. Employees shall pay basic pension insurance premiums in the proportion of their own wages as prescribed by the State and credit them to their individual accounts. Individual industrial and commercial households without employees, part-time workers who do not participate in basic pension insurance with their employers, and other flexibly employed persons who participate in basic pension insurance shall pay basic pension insurance premiums in accordance with the state regulations, which shall be credited to the basic pension insurance fund and the individual account respectively.

How to pay social security

1. If a worker buys social insurance through an employer, the social insurance shall be withheld and paid by the employer, and the employer, after withholding, shall inform him/her on a monthly basis about the details of the payment of the social insurance premiums;

2. If a worker voluntarily participates in the social insurance, he/she may pay the social insurance premiums to the social insurance premiums collection organization directly, and the worker may go directly to the center of the social security institution to pay social insurance premiums.