How to calculate the employee contribution base?

The calculation method of employee contribution base is as follows:

1. First of all, when determining the base of individual social security contributions, we should refer to the average monthly wage income of employees in the previous year;

2. The social security payment base should be no less than 60% and no more than 300% of the average monthly salary of local employees in the previous year;

3. The specific values should be adjusted according to the standards published by the local social security bureau;

4. If the wages of employees are lower than the minimum base or higher than the maximum base, social security fees shall be paid according to the minimum base or the maximum base.

Social security payment base setting:

1, the concept of payment base: refers to the wage base used to calculate social insurance premiums, which is usually linked to the wage income of employees;

2. Upper and lower limits of the base: each region sets the upper and lower limits of the base according to the local economic development level and the average wage of employees;

3. Linked to salary: the payment base is generally based on the average monthly salary of employees in the previous year;

4. Annual adjustment: annual adjustment according to economic development and price level changes;

5. Proportion of individual and unit contributions: employees and units pay social security fees according to the prescribed proportion and payment base.

To sum up, the determination of employee social security payment base should be based on the average monthly salary of individuals in the previous year, and set according to the provisions of not less than 60% and not more than 300% of the local average salary in the previous year. At the same time, it should be adjusted according to the latest standards of the Social Security Bureau. If the salary exceeds the prescribed range, it shall be paid according to the minimum or maximum base.

Legal basis:

People's Republic of China (PRC) social insurance law

Article 12

The employing unit shall pay the basic old-age insurance premium according to the proportion of the total wages of its employees stipulated by the state, and record it in the basic old-age insurance pooling fund. Employees shall pay the basic old-age insurance premium in accordance with the proportion of wages stipulated by the state and record it in their personal accounts. Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employing unit and other flexible employees who have participated in the basic old-age insurance shall pay the basic old-age insurance premiums in accordance with state regulations and record them in the basic old-age insurance pooling fund and individual accounts respectively.