The upper limit of payment base refers to the maximum wage income of employees stipulated in each region in a social security year; The lower limit of the payment base refers to the minimum wage income of employees stipulated by each region in a social security year.

The provisions of the upper and lower limits of the payment base are to ensure the stable operation of the social security fund and prevent the excessive or low payment base from adversely affecting the social security fund. For employees, if their wage income is higher than the upper limit of the payment base, they can only pay according to the upper limit of the payment base; If the wage income is lower than the lower limit of the payment base, the payment can be made according to the lower limit of the payment base.

To sum up, the provisions of the upper and lower limits of the payment base are to ensure the stable operation of the social security fund and protect the basic rights and interests of employees. When formulating social security policies and regulations, it is necessary to comprehensively consider various factors, including the level of economic development, the average wage level of employees, and the operation of social security funds. In order to formulate a reasonable upper and lower limit standard for the payment base.

Legal basis:

Article 12 of the Social Insurance Law of People's Republic of China (PRC) stipulates that individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employing unit and other flexible employees who have participated in the basic old-age insurance shall pay the basic old-age insurance premiums in accordance with state regulations and record them in the basic old-age insurance pooling fund and individual accounts respectively.

Article 20 stipulates that the state shall establish and improve a new rural social endowment insurance system. The new rural social endowment insurance adopts the mode of combining individual account with basic pension, and the specific measures are formulated by the State Council.

Article 2 1 stipulates that the new rural social endowment insurance benefits consist of basic pension and personal account pension. Rural residents who participate in the new rural social endowment insurance meet the conditions stipulated by the state and receive the benefits of the new rural social endowment insurance on a monthly basis.