Legal analysis: Basic pension insurance combines social pooling with personal accounts. The basic pension insurance fund is composed of employer and individual contributions as well as government subsidies. The employer shall pay basic pension insurance premiums in accordance with the proportion of the total wages of its employees stipulated by the state, and record them into the basic pension insurance overall fund. Employees should pay basic pension insurance premiums in accordance with the proportion of their wages stipulated by the state and record them into their personal accounts. Individual industrial and commercial households without employees, part-time employees who have not participated in basic pension insurance in the employer, and other flexible employment personnel who participate in basic pension insurance shall pay basic pension insurance premiums in accordance with national regulations and record them separately in the basic pension insurance pooling fund and personal accounts.

Legal basis: Article 15 of the "Social Insurance Law of the People's Republic of China" The basic pension consists of a pooled pension and a personal account pension. The basic pension is determined based on the individual’s cumulative contribution years, contribution salary, average salary of local employees, personal account amount, average life expectancy of the urban population and other factors.