What does it mean to buy the minimum base for social security

The minimum base for social security is the minimum base value used to calculate social security costs. In China, social security costs are paid by both employers and employees***, and the amount of contribution is related to the city, monthly salary, age and other factors. The minimum base of social security, on the other hand, is for those who have lower salaries to protect, but also allows employers to reduce the burden.

The social security minimum base is divided by region and is generally determined by the average wage level in the jurisdiction. For example, Shanghai has a higher average wage level and its social security minimum base is correspondingly higher, while places such as Henan have a relatively lower average wage level and their social security minimum base is correspondingly lower. In addition, different types of social security payment ratios are different, for example, the minimum pension insurance base is 60% of the local monthly minimum wage.

Purchasing a social security minimum base can provide workers with a certain level of social security protection, and in the event of unforeseen circumstances, such as unemployment, illness, retirement, etc., they can receive a certain level of financial compensation. As for employers, purchasing the minimum social security base can alleviate part of the burden of social security fees and reduce labor costs. The setting of the minimum social security base is designed to protect the basic rights and interests of low-income people, and at the same time can also promote economic development.