Please ask how to determine the base of social insurance contributions

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Social insurance base, referred to as social security base, refers to the social insurance contribution base of an employee in a social security year. It is determined on the basis of the monthly average of all wage income earned by the employee from January to December of the previous year.

The social insurance contribution base is an important basis for calculating the social insurance premiums to be paid by employers and their employees, as well as the social insurance entitlements of the employees, and there is an upper limit and a lower limit, with the exact amount depending on the actual situation in each region.

Declaration of social insurance base:

From February to May each year, insured units must declare the social insurance contribution base for the next settlement year at the municipal social insurance premium collection management center or district social insurance office (hereinafter collectively referred to as the social insurance agency) where they are registered.

The contribution base declared by the insured unit shall be confirmed by the signature of the insured employee or by means of public announcement.

If a contributing unit fails to make a declaration in accordance with the regulations, the social insurance agency may temporarily determine the contribution base at 110 percent of the monthly contribution base of the previous year.

The contribution base is an important calculation basis for participants to enjoy social insurance benefits. After a worker participates in social insurance, the social security agency establishes an individual account for basic pension insurance and an individual account for medical insurance that remains unchanged for the rest of his or her life.

The higher a worker's contribution base is, the more he or she has in his or her individual account, the more medical expenses he or she has at his or her disposal, and the higher the pension he or she receives when he or she retires.

The concealment, omission or under-reporting of the contribution base by the insured units and the insured persons will directly reduce the level of enjoyment of the social insurance benefits of the insured persons

The monthly contribution base for the social insurance is generally determined according to the monthly average value of the annual salary of the employees in the previous year, which is determined once a year, and will not be changed for one year after it is determined.