What is the meaning of the contribution base in social security?

The contribution base of social security refers to the wage base used by enterprises or individual employees to calculate the payment of social insurance premiums; multiplying this base by the prescribed rate is the amount of social insurance premiums that enterprises or individuals should pay; the social security contribution base of each region is linked to the local average wage data. It is determined on the basis of the monthly average of all wage income earned by an employee from January to December of the previous year. It is determined once a year, and after it is determined, it will not be changed within one year. The time for declaration and adjustment of the social security base is usually in July; enterprises generally take the total wages of the employees of the enterprise as the contribution base, and half of the individual employees take their average monthly wages in the previous year as the wage base for individual payment of social insurance premiums. In China, the contribution base is approved by the social insurance agency according to the declaration of the employer, according to the law.

Generally, the contribution base is the person's salary income in the previous year.

1. If the salary income of an employee is higher than 300% of the average salary of the local employees in the previous year, 300% of the average salary of the local employees in the previous year shall be the contribution base;

2. If the salary income of an employee is lower than 60% of the average salary of the local employees in the previous year, 60% of the average salary of the local employees in the previous year shall be the contribution base;

3. If the salary of the employee is between 300% and 60%, the base shall be determined on the basis of the facts. to 60%, shall be declared according to the facts. When the salary income of the employee cannot be determined, the contribution base is determined by the average salary of the local employees in the previous year announced by the local labor administration department as the contribution salary.

In summary: every year the social security will be in a fixed time in March or July, different from place to place, the approved base, according to the employee's average monthly salary of the previous year to declare a new base, you need to prepare the payroll these certificates.

Legal basis:

The Chinese People's **** and State Social Insurance Law

Article 4

The Chinese People's **** and State of the territory of the employer and the individual to pay social insurance premiums in accordance with the law, have the right to inquire about the record of payment, personal rights and interests record, and request the social insurance agencies to provide social security consulting and other related services.

Individuals enjoy social insurance benefits in accordance with the law, and have the right to supervise the payment of contributions for them by their own units.

Article 5

The people's governments at or above the county level incorporate the cause of social insurance into their national economic and social development plans.

The State raises social insurance funds through multiple channels. The people's governments at or above the county level give necessary financial support to the social insurance cause.

The State supports the social insurance cause through preferential tax policies.

Article 90

Where a social insurance premium collection agency makes unauthorized changes in the basis and rate of payment of social insurance premiums, resulting in under- or over-charging of social insurance premiums, it shall be ordered by the relevant administrative department to recover the social insurance premiums that should be paid or to refund the social insurance premiums that should not have been paid; and the directly responsible supervisory personnel and others directly responsible shall be given sanctions in accordance with the law.