now, social security is one of the most concerned issues. Social security plays a basic role in ensuring people's daily life, reducing a lot of burden for people's medical treatment, childbirth and pension. Is it true that the social security payment base will be lowered recently? Why should the social security payment base be reduced? What impact does the reduction of social security payment base have on enterprises and employees? This article brings you the policy of reducing the social security payment base and its impact on enterprises and employees. Let's have a look.
Verify and reduce the social security payment base
According to the requirements of the executive meeting of the State Council, all localities have changed from the average wage of on-the-job employees of urban non-private units in the past to the average wage of full caliber employees weighted by urban non-private units and private units in the province, and verified the upper and lower limits of the payment base to reduce the payment base. Individual industrial and commercial households and flexible employees can voluntarily choose the payment base between 60% - 300% of the average wage of the province.
It is understood that under normal circumstances, the social security payment base of employees is their average monthly salary of the previous year. However, the insured employees with lower and higher wage income shall take the lower limit (average wage of 60%) and upper limit (average wage of 300%) of the social security contribution base published by all localities every year as their contribution base.
In the verification of the upper and lower limits of the payment base, most provinces are determined by the average wage of on-the-job employees of Urban Non private units, excluding private units with low wage levels. In this way, the upper and lower limits of the annual social security contribution base will increase with the increase of the average wage of on-the-job employees of Urban Non private units, and the social security contributions of individuals and enterprises will also rise.
Yang Yansui, director of the employment and social security research center of Tsinghua University, said that the social security payment base is linked to the average wage of on-the-job employees, but its statistical caliber is mainly urban non-private units, and the average level is relatively high. According to this base payment, the social security burden is relatively heavy. Many small and medium-sized enterprises, especially private enterprises, can't afford social security, and employees can't enjoy social security treatment.
Now, the 'virtual high' situation of the upper and lower limits of the social security payment base has finally ushered in a change, which will also bring a series of positive effects.
'two arrows at the same time 'to ensure that the social security burden is really reduced
"There are two dimensions to reducing social security fees. One is to reduce the rate and the other is to reduce the fee base." Zhang Yinghua, executive researcher of the world social security research center of the Chinese Academy of Social Sciences, said that since May 1, all localities can reduce the payment proportion of basic old-age insurance units for urban employees from the original 20% to 16%, but if the payment base is expanded, it will offset the burden reduction effect of the decline in the rate, so it is necessary to reduce the payment base at the same time.
Zhang Yinghua said that the average wage of on-the-job employees in non private units is relatively high, while that in private units is relatively low. The average wage of full caliber employees who add private units to the weighted calculation will also be reduced. In this way, the base is reduced and the rate is also reduced. The dual measures can really reduce the social security burden of enterprises.
Avoid institutional crowding out of low-income groups
In the past, all localities verified the upper and lower limits of the payment base according to the average wage of on-the-job employees of Urban Non private units, resulting in a certain irrationality in the base. Some enterprises, individual industrial and commercial households and flexible employees chose not to participate in the insurance because they felt that the payment burden was heavy, resulting in an institutional crowding out of low-income groups.
As early as 2016, the implementation opinions on stimulating the vitality of key groups and increasing the income of urban and rural residents issued by the State Council proposed that the average wage of on-the-job employees of urban private units should be included in the statistical scope of payment base, so as to form a reasonable payment base of social insurance and housing provident fund, so as to avoid institutional crowding out of low-income groups.
According to Yang Yansui's analysis, by broadening the scope of statistical caliber and including small enterprises and private enterprises, it is expected that the payment base will be reduced by about 10%. In this way, the rate and fee base will be reduced, the social security burden of enterprises can be reduced to a certain extent, and more groups with relatively low wages can participate in insurance.
The income of low-income people is expected to increase
In the opinion of the interviewed experts, reducing the social security payment base is conducive to reducing the payment burden of low-income people, so that more low-income people can afford social security and enjoy social security treatment. At the same time, the wages of low-income people are also expected to increase.
For example, suppose that the average wage of on-the-job employees of urban non-private units in a province is 6000 yuan, and the lower limit of social security contribution is 60% of the average wage, that is 3600 yuan. Xiao Wang's salary is 2000 yuan, which is lower than the lower limit of payment, but he has to pay social security based on the lower limit of 3600 yuan. The individual payment proportion of endowment insurance is 8%, and his monthly endowment insurance payment is 288 yuan.
If the average salary of full caliber employees after re verification is reduced to 5000 yuan, the lower limit of social security payment will be reduced to 3000 yuan. At this time, Xiao Wang's monthly endowment insurance payment will be reduced to 240 yuan, and his monthly income will increase by 48 yuan.
What is your social security payment base?