Guide
The old rule is that data speaks.
According to the relevant data released by the National Bureau of Statistics, by the end of 2022, the overall scale of flexible employment in mainland China has exceeded 200 million, including but not limited to individual industrial and commercial households, freelancers, part-time employees, etc.
Generally speaking, the flexible employment group refers to what we usually call freelancers, and unlike the employees of enterprises and institutions, the flexible employment group does not have a stable source of wage income, and the coverage of the current basic pension insurance system is relatively small.
To put it simply, because there is no employer to pay social insurance premiums for them, flexible employees cannot enjoy the same normal benefits as employees in terms of medical care, pension, unemployment and work-related injuries. In order to improve this situation, in the process of the reform of "reducing fees and expanding coverage" of social insurance, freelancers have been allowed to participate in the basic pension insurance and medical insurance of employees as flexible employees, and can enjoy the same lifelong medical insurance and pension treatment as retired employees after their "retirement".
The proportion of employees participating in the basic pension insurance
As everyone knows, the state has clear regulations on the participation of employees of enterprises and institutions in social insurance. For example, the Social Insurance Law and the Labor Law both emphasize that employers are required to pay social insurance for their employees in accordance with laws and regulations.
Taking basic pension insurance as an example, Article 20 of the Social Insurance Law stipulates that an employer shall pay basic pension insurance premiums in accordance with the proportion of the total wages of its employees stipulated by the state, and all of them shall be credited to the basic pension insurance pooling fund; Employees are required to pay basic pension insurance premiums in accordance with the proportion of their wages stipulated by the state, and all of them shall be credited to their personal accounts.
It is understood that at present, the basic old-age insurance system for employees of mainland enterprises has not fully realized the overall planning of the whole country, and the proportion of basic old-age insurance for employees is different in different regions. Taking Fujian as an example, the basic pension insurance premium paid by the unit = the total salary of the unit * 16%; Individual payment of basic pension insurance premiums = personal salary * 8%.
Freelancers, how to participate in employee social security?
The Social Insurance Law stipulates that individual industrial and commercial households without employees, part-time employees who do not participate in the basic pension insurance at the employer, and other freelancers can participate in the basic pension insurance for employees as flexible employees.
Unlike enterprise employees, flexible employees participate in the basic pension insurance for employees, and the expenses required are borne by the individual in full. Moreover, it is worth mentioning that at present, the contribution ratio of flexible employment personnel to participate in the basic pension insurance for employees is not completely unified in different co-ordination areas.
Taking Fujian as an example, the local regulations stipulate that individuals who do not have a fixed job can voluntarily participate in or continue the basic old-age insurance for employees of enterprises as flexible employees before reaching the statutory retirement age, and pay the old-age insurance premiums according to the regulations, and the contribution ratio is 20% of the approved payment base. Among them, 8% of the payment base is allocated to the individual account, and 12% is allocated to the pooled fund.
Note: Flexible employees participate in the basic pension insurance for employees, and the payment base can be freely selected within the upper and lower limits of the monthly payment base of the basic pension insurance for employees of the enterprise, that is, within the range of 60~300% of the average monthly salary of on-the-job employees in the area in the previous year, and the basic principle of paying more and getting more and paying longer is also followed.
In 2024, the upper and lower limits of the basic pension insurance payment base for enterprise employees will be further increased
With the increase in the average wage level of on-the-job employees in various regions, many regions will also adjust the contribution base of employees/flexible employees in 2024.
(1) Shandong: From January 1, 2024, the upper and lower limits of the monthly social insurance premium payment base for the basic pension insurance of enterprise employees in 2024 will be temporarily implemented at 21,207 yuan and 4,242 yuan, and the same standard will be for flexible employment participants;
(2) Hunan: Individual industrial and commercial households and flexible employees participating in the basic endowment insurance for enterprise employees can choose any integer as the base to pay the basic endowment insurance premiums for enterprise employees between the lower limit of 4,053 yuan/month and the upper limit of 20,265 yuan/month;
(3) Shenzhen: From January 1 ~ June 30, 2024, the monthly payment base of basic pension insurance for enterprise employees shall be implemented at no less than 3,523 yuan.
The formula for calculating and paying the basic pension for flexibly employed persons
Similar to the basic pension insurance for employees, the basic pension for flexible employees also includes two parts, namely the basic pension and the personal account pension, which are calculated as follows:
Basic pension = average social wage of the previous year (also known as the calculation base of pension) × (1 + average contribution index of the person) ÷ 2× payment period ×1%.
Personal account pension = personal account storage amount ÷ number of months
Flexible employees, pay 848.4 yuan per month pension insurance, after retiring at the age of 60, how much pension can they receive? How long does it take to pay for yourself?
Taking the above-mentioned payment base of Shandong as a reference, assuming that a flexible employee in Shandong Province participates in the basic pension insurance for employees with the lower limit of the payment base, then according to the local policy at this stage, the proportion of his monthly payment is 20%, of which 8% is included in the personal account and 12% is included in the overall fund. After 15 years of cumulative contributions, how much basic pension can I receive every month after retiring at the age of 60?
(1) Basic pension = 7468 yuan / month (1 + 0.6) ÷2×15×1% = 896.16 yuan;
Note: 7468 yuan is the calculation base for the basic pension insurance treatment of enterprise employees in Shandong Province in 2023, because the flexible employment personnel are insured according to the minimum payment base every year, so the average payment index is 0.6.
(2) Personal account pension = 61084.8/139 = 439.46 yuan (note: this data ignores factors such as personal account interest calculation, changes in the lower limit of payment data and financial subsidies);
Note: According to the lower limit of the payment base of 4242 yuan / month, the basic endowment insurance is paid, and the monthly payment amount is 848.4 yuan, of which 8% of the payment base is credited to the personal account, and the amount of the personal account is 4072.32 yuan for one year, and the cumulative amount is 61084.8 yuan for 15 years.
Adding the basic pension and the personal account pension, it can be calculated that the basic pension received by the flexible employee is 1335.62 yuan per month. If calculated according to this standard of payment, it will only take 9.5 years to recover the original cost.
It is worth mentioning that the basic pension of retirees will also be "surveyed" every year, and 2024 is also very likely to usher in the 20th consecutive increase since 2005. Therefore, in the process of enjoying the basic pension insurance benefits, the pension amount of the flexible employment person is not static, but is increasing year by year, and the number of years of return will be reduced accordingly, that is, it may not take 9.5 years to be able to receive all the basic pension insurance premiums paid.
epilogue
In fact, flexibly employed people can not only enjoy pension benefits when they participate in basic pension insurance. According to the current policy, after the death of a pensioner, his or her family can also apply for a funeral grant and pension, and withdraw the uncollected portion of the personal account. Therefore, if the above benefits are taken into account, as long as the duration of applying for pension exceeds 9.5 years, the money spent on paying for insurance will not be lost! What do you think, is this the truth?
Source: Huinong Little Helper