Pension calculation method
First of all, we need to know the calculation method of China's pension. China's pension calculation method is based on the length of service, wages and social security fees paid by employees. The specific calculation formula is as follows:
Pension = cumulative payment months of individual account × average monthly salary of individual account ÷ average monthly salary of local employees × pension base × individual contribution ratio+unit basic endowment insurance fund × unit contribution ratio.
The minimum retirement wage is 4 1 year of service.
Among the above calculation methods, the most likely unfair phenomenon is the pension base. Pension base refers to the average salary of employees before retirement 12 months. If the wages of employees have been relatively low, then the pension base will be relatively low, resulting in a relatively low pension level. Under the minimum retirement wage system of 4 1 length of service, an employee can get the minimum retirement pension as long as he pays 4 1 year social security, no matter how low his salary is.
This system seems fair, but in fact it is extremely unfair. Because the lower the wages of employees, the lower the social security fees paid, resulting in a lower pension base. Under the minimum retirement wage system of 4 1 length of service, the pension level of these employees will be relatively low, even only a few hundred yuan.
How to solve injustice?
In order to solve this unfair phenomenon, we can start from the following aspects:
1. Change the calculation method of pension. We can consider changing the pension base to the average salary of employees during the whole working period to avoid the problem of low pension level caused by low wages.
2. Raise the minimum wage. By raising the minimum wage, the wage level of employees can be improved, and then their pension level can be improved.
3. Strengthen the construction of social security system. By strengthening the construction of social security system, the proportion of employees' social security contributions can be increased, thus improving their pension level.
final result
To sum up, although the minimum retirement wage system of 4 1 length of service seems fair, it is actually unfair. To solve this problem, it is necessary to change the way of calculating and distributing pensions, raise the minimum wage standard, strengthen the construction of social security system in many ways, and realize the fairness and rationality of the pension system.