1. The endowment insurance for urban employees is jointly paid by the unit and individual employees, with the unit contribution ratio of 16% and the individual contribution ratio of 8%. Among them, part of the premiums paid by the unit all enter the pension insurance pooling account, which is used to pay the basic pension, transitional pension and other benefits for urban workers retirees;
2. 8% of individual contributions go into the individual pension insurance account, and the funds that enter the individual pension insurance account will also generate interest. The balance of the individual pension insurance account consists of two parts: individual contributions and account interest, which are used to pay the individual pension benefits of retirees.
Legal basis: Article 64 of People's Republic of China (PRC) Social Insurance Law.
Social insurance funds include basic endowment insurance fund, basic medical insurance fund, industrial injury insurance fund, unemployment insurance fund and maternity insurance fund. In addition to the basic medical insurance fund and maternity insurance fund combined accounting, other social insurance funds are accounted for separately according to social insurance types. Social insurance funds implement a unified accounting system throughout the country.
The social insurance fund is earmarked for special purposes, and no organization or individual may occupy or misappropriate it.
The basic old-age insurance fund will gradually implement national overall planning, and other social insurance funds will gradually implement provincial overall planning. The specific time and steps shall be stipulated by the State Council.