The basic endowment insurance for enterprise employees and the basic endowment insurance for urban and rural residents are two different systems of endowment insurance. What's the difference between the two? Is the retirement age the same? Let's take a look.
The participants are different
The pension insurance for employees of enterprises is all kinds of urban enterprises and their employees, individual industrial and commercial households, and flexible employment personnel (over 16 years old, not yet reached the statutory retirement age), etc.
The pension insurance for urban and rural residents is for urban and rural residents who are at least 16 years old (excluding school students) and have not participated in the pension insurance of state organs and institutions and the pension insurance of enterprise employees.
Payment methods differ
● Pension insurance for enterprise employees:
1. Insured employees of the unit:
The pension insurance fee shall be paid jointly by the employer and its employees on a monthly basis.
The amount of enterprise employee pension insurance payment = payment base x payment ratio.
Based on the average monthly salary of the previous year (the upper and lower limits of the payment base are guaranteed at 60% and 300% of the average monthly salary of employees in urban units of all calibers in the province in the previous year), the unit payment ratio is 16%, and the individual payment ratio is 8%.
2. Flexible Employees:
Before the announcement of the average wage of employees in urban units of all calibers in the province in the previous year: voluntarily choose to pay between 70% and 300% of the average wages of employees in urban units of all calibers in the province in the previous year;
After the announcement of the average wage of employees in urban units of all calibers in the province in the previous year, the average wage of employees in urban units of all calibers in the province in the previous year shall be voluntarily selected between 60% and 300% of the average wages of employees in urban units of all calibers in the province.
Payments can be made annually, quarterly, or monthly.
● Pension insurance for urban and rural residents:
Voluntary choice of payment grade, annual payment, the government according to the individual payment grade amount of 10% of the amount of the current year to give a subsidy, together with the individual payment into the personal account. (Note: The government will not provide payment subsidies for those who make up the payment or fail to pay the annual fee).
For example: Wang has paid 200 yuan for urban and rural residents' basic endowment insurance in February 2024, 800 yuan in March, 1,500 yuan in July, 2,000 yuan in October, and a total of 4,500 yuan in 4 installments in 2024, which does not exceed the standard of 5,500 yuan for the maximum payment in the current year, and the government subsidy is calculated according to the payment grade of 4,500 yuan corresponding to the total annual payment of individuals, and the government subsidizes 510 yuan for personal accounts.
The retirement age is different
● Basic endowment insurance for enterprise employees
1. Insured employees of the unit:
Male employees: 60 years old or older;
Female employees: 55 years of age or older for managerial and technical positions, and 50 years of age for workers.
2. Flexibly employed persons who have not participated in pension insurance as employees:
Male at least 60 years old;
Females are at least 55 years old.
● Basic endowment insurance for urban and rural residents
Be at least 60 years of age (male or female).
The standard of treatment is different
● Pension insurance for enterprise employees:
The level of the basic pension of employees is mainly determined by factors such as the payment base of the pension insurance, the payment period (including the deemed payment period), the accumulation amount of personal accounts and the average monthly salary of employees in the province in the previous year at the time of retirement. It is composed of basic pension, personal account pension and transitional pension.
● Pension insurance for urban and rural residents:
The pension insurance benefits for urban and rural residents are composed of basic pensions and personal account pensions, which are paid for life. The monthly calculation and payment standard of the pension in the personal account of the pension insurance for urban and rural residents is the total amount of savings in the personal account divided by 139.
Monthly pension insurance benefits for urban and rural residents = basic pension + personal account pension. Taking Foshan City, Guangdong Province as an example, the current basic pension standard is 303 yuan per person per month.
In addition, due to different payment grades, the government payment subsidies obtained may be different, the savings amount of personal accounts are different, and the corresponding pensions will be different, which can be found in the table below.
Annotation:
1. 139 is the number of months of pension in the personal account corresponding to the pension at the age of 60.
The number of months shall be calculated in accordance with the provisions of the Decision of the State Council on Improving the Basic Pension Insurance System for Employees of Enterprises (Guo Fa [2005] No. 38).
2. The interest on the personal account shall be calculated according to the regulations every year, and the pension level will be higher than the above calculated value after adding interest.
Mandatory is different
Pension insurance for enterprise employees: Employers and their employees must participate in insurance and pay contributions in accordance with the law. Voluntary participation in insurance contributions for flexibly employed persons.
Pension insurance for urban and rural residents: voluntary participation and payment.
How to connect the two types of insurance?
The endowment insurance for enterprise employees and the endowment insurance for urban and rural residents also have something in common: 1. In accordance with the principle of "paying more and getting more for a long time"; 2. Only one pension insurance treatment can be enjoyed, and no duplicate insurance is allowed.
If the insured person reaches the statutory retirement age of urban employee pension insurance, if he or she participates in the basic pension insurance for urban employees (hereinafter referred to as occupational insurance) and urban and rural residents' pension insurance (hereinafter referred to as residence insurance), before applying for pension insurance benefits, apply to the social security institution of the place where the benefits are received for the bridging procedures of the urban and rural pension insurance system.
If the payment period of occupational insurance is 15 years or more (including the extension of payment to 15 years), they can apply for the transfer of their residence insurance to employment insurance, and the corresponding benefits will be calculated and paid in accordance with the occupational insurance measures;
Persons who have received occupational insurance benefits or residence insurance benefits in accordance with national regulations shall no longer go through the procedures for connecting the urban and rural pension insurance systems, and the residence insurance relationship or occupational insurance relationship that still exists but has not yet received benefits shall be cleared up in accordance with the provisions of the corresponding system.