Guide
As we all know, social security is an important part of the social security system in mainland China, covering five aspects: medical care, pension, maternity, unemployment, and work-related injury. According to the current laws and regulations, employers are required to pay social insurance for their employees.
Social security contribution ratio
Generally speaking, the contribution of social security for employees is jointly participated by the employer and the individual. However, specific to different regions and different types of insurance, the proportion of contributions borne by units and individuals is different.
Taking Hangzhou as an example in 2023, the proportion of social security contributions for employees in Hangzhou is 14% for pension insurance enterprises and 8% for individuals, 9.5% for medical insurance enterprises and 2% for individuals, 0.5% for unemployment insurance enterprises and individuals, and 0.4% for work-related injury insurance.
How many years can I pay social security to enjoy the corresponding treatment?
Generally speaking, the minimum payment period varies from place to place for different types of insurance.
(1) Endowment insurance: The national policy stipulates that the minimum payment period of basic endowment insurance for employees is 15 years, and only after 15 years of cumulative payment can they apply for retirement and enjoy pension treatment after reaching the statutory retirement age;
(2) Medical insurance: Retirees can only enjoy lifelong medical insurance benefits after paying for a certain number of years. For example, starting from 2024, Tianjin requires male employees to pay for medical insurance for a minimum of 25 years, and female employees need to pay for employee medical insurance for a minimum of 20 years, and the actual payment period in Tianjin should not be less than 5 years;
(3) Maternity insurance: Similar to the number of years of medical insurance payment, the minimum payment time of maternity insurance also has different regulations in different places, for example, some regions stipulate that female employees need to pay for 6 consecutive months before giving birth before reimbursement, while some regions require a minimum of 1 year of payment and need to pay continuously;
(4) Work-related injury insurance: The social security policy stipulates that the employer pays work-related injury insurance for the employee, and the payment is made in the current month, which will take effect in the next month;
(5) Unemployment insurance: Generally speaking, unemployment insurance needs to be paid for at least one year before you can apply for unemployment benefits after becoming unemployed. In addition, the period for which unemployment insurance can be paid varies depending on the time of payment, but the maximum period of unemployment benefit is 24 months.
After paying pension insurance for 15, 20, 25 and 30 years, and retiring at the age of 60, how much basic pension can they receive each month?
Before giving specific figures, we first need to understand the formula for calculating the basic pension and its components.
Generally speaking, the basic pension received by retirees includes basic pension, personal account pension and transitional pension.
(1) Basic pension = pension calculation base (1 + average contribution index) in the region where the year of retirement ÷2× payment period ×1%
Note: The level of basic pension is related to the calculation and payment base of the pension in the place of retirement, the average contribution index and the number of years of payment. In general, in the same retirement province, the longer the payment period and the higher the contribution index, the higher the level of the basic pension.
(2) Personal account pension = personal account storage amount ÷ number of months
Note: In the case of retirement at the age of 60, the number of months of pension calculation and payment is 139 in accordance with national laws. When you are on the job, the higher the base of the insurance payment option, the more money is stored in the personal account, and the more part of the pension in the personal account.
(3) Transitional pension = pension calculation base in the region where the year of retirement x average payment index x payment period before establishing a personal account x transitional pension calculation and payment coefficient
Description: Transitional pension is a measure that most provinces will implement at present, and the reason for the transition pension is mainly because the personal account of the mainland pension insurance has been gradually established since 1995, and the pension insurance paid before that will produce a transitional pension. However, in the next calculation, we will ignore the impact of the transitional pension, because employees who have paid for 15, 20 and 25 consecutive years will only start to participate in the insurance after the establishment of their personal account.
Next, back to the question just now, how much basic pension can be received each month after the employee pension insurance has been paid for 15, 20, 25, and 30 years, and after retiring at the age of 60, how much can the basic pension be received each month? Assuming that the four retirees A, B, C, and D will all reach the age of 60 in January 2024 and apply for retirement procedures, and the province where they retire is Fujian. If the savings amount of the personal accounts of the four retirees is 150,000 yuan, and the average contribution index is 1.2, 1.0, 0.8 and 0.6 respectively, then what is the temporary pension calculated according to the calculation and payment base of the pension of retirees in Fujian Province in 2023?
A: [7528*(1+1.2)÷2×15×1%]+(150000÷139)=2321.25 yuan/month
B: [7528*(1+1.0)÷2×20×1%]+(150000÷139)=2584.73 yuan/month
C: [7528*(1+0.8)÷2×25×1%]+(150000÷139)=2772.93 yuan/month
D: [7528*(1+0.6)÷2×30×1%]+(150000÷139)=2885.85 yuan/month
Note: 7,528 yuan/month is the base for the pension of retirees in 2023 announced by Fujian Province a few days ago.
epilogue
Through the comparison of the above calculation results, it is not difficult to find that under the condition of the same amount of personal account storage, the longer the retiree has paid contributions, the higher the pension level. Therefore, this just verifies the principle of "paying more and getting more, paying more and paying longer" followed by the basic pension insurance treatment. At the same time, it also reminds the in-service insured workers that in the case of choosing a relatively low payment base, if you want to make your pension level higher after retirement, then extend the payment period as much as possible, after all, the longer the payment period, the impact on the basic pension part is still quite large!
Source: Huinong Little Helper