The amount paid by a province = (the average wage of employees in a province ×90%)× the number of employees in a province × the solution ratio.
The average wage of employees in each province is the weighted average wage of employees in urban non-private units and private units provided by the statistical department.
The number of on-the-job insured persons in each province is temporarily based on the average number of on-the-job insured persons and the number of employed persons in enterprises announced by the National Bureau of Statistics. When the conditions are ripe in the future, according to the data of the permanent population covered by the national insurance plan, the number of people who should be insured on the job is determined.
The central adjustment fund is supported by income, and all the funds raised in that year are allocated to local governments. The central adjustment fund is allocated according to the per capita quota, and the amount of allocated funds is determined according to the number of retirees in each province approved by Ministry of Human Resources and Social Security and the Ministry of Finance.
The amount allocated by a province = the number of retirees approved by a province × the national per capita allocation.
In which: national per capita appropriation = central adjustment fund raised/approved national retirees.
Legal basis: People's Republic of China (PRC) Social Insurance Law.
Eleventh basic old-age insurance to implement the combination of social pooling and individual accounts. The basic old-age insurance fund consists of employers, individual contributions and government subsidies.
Article 12 The employing unit shall pay the basic old-age insurance premium according to the proportion of the total wages of employees stipulated by the state and record it in the basic old-age insurance pooling fund. Employees shall pay the basic old-age insurance premium in accordance with the proportion of wages stipulated by the state and record it in their personal accounts. 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.
Thirteenth employees of state-owned enterprises and institutions to participate in the basic old-age insurance, the basic old-age insurance premiums payable during the payment period shall be borne by the government. When the basic old-age insurance fund is insufficient to pay, the government gives subsidies.