Pension insurance policy questions and answers: How do self-employed individuals pay contributions and how are pensions calculated?

The contribution ratio for urban individual industrial and commercial households and their employees and urban freelancers to participate in basic pension insurance is 18% of the average social salary of employees in the province in the previous year.

Freelancers and urban self-employed industrial and commercial owners must pay all their own contributions, while employees must pay jointly from individual economic organizations and themselves (currently, the payment ratio of employees themselves is 7%, which will be adjusted in the future according to the adjustment of the personal contribution ratio of enterprise employees)

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If the insured person reaches the national statutory retirement age (men are over 60 years old and women are over 55 years old) and have paid contributions for 15 years, basic pensions and personal account pensions will be paid on a monthly basis.

If the payment period is less than 15 years, the personal account savings (including interest) will be paid to the individual in one lump sum, and the pension insurance relationship will be terminated.

If employees have paid contributions for less than 15 years, how are their pension insurance benefits calculated?

(1) Employees who started working after January 1, 1996, and when they reach the statutory retirement age and have paid contributions for less than 15 years in total, will not enjoy monthly pension benefits after retirement, and the amount saved in their personal account will be paid to them in one lump sum, and at the same time

Terminate the pension insurance relationship.

(2) Employees who worked before December 31, 1995, after the implementation of the "Implementation Measures", that is, retired after January 1998, and when they reach the statutory retirement age, if the payment period is more than 10 years but less than 15 years, they can be eligible according to regulations

If you make additional contributions for 15 years, you can receive a basic pension on a monthly basis when you retire.

(3) If you started working before December 31, 1995, and when you reach the statutory retirement age, if you have paid less than 10 years of contributions, you cannot make additional payments.

In addition to the one-time payment of the personal account balance to the individual in accordance with regulations, two months of indexed average monthly payment wages will be paid to the individual for every full year based on the payment period before the account was established (including the deemed payment period).

How to calculate the pensions for different types of personnel? The structure of basic pension calculation and payment for employees who worked before and after the implementation of the new pension insurance system in 1996 is different: (1) Employees who joined the work after the implementation of the new pension insurance system (the so-called "new people")

") Upon retirement: basic pension = basic pension + personal account pension.

Among them: the basic pension standard is 20% of the average monthly salary of employees in the province in the previous year, and the personal account pension standard is the amount of savings in my account divided by 120.

(2) When employees who worked before the implementation of the new system (the so-called "middle people") retire: monthly basic pension = basic pension + personal account pension + transitional pension + a certain proportion of subsidies and adjustment funds.

(3) If the cumulative payment period of an individual is less than 15 years, he will not enjoy basic pension benefits when he retires, and the amount saved in his personal account will be paid to him/her in one lump sum.

(4) Those who have retired before the implementation of the new system will still receive pensions according to the original regulations of the state, and the pension adjustment methods will also be implemented.

That is, like other retirees, they enjoy the normal adjustment mechanism of basic pension.

How to establish an employee’s personal pension insurance account?

What is the relationship between employee contributions and my future pension benefits?

The proportion of credit to personal accounts is 11% of the wages paid by the employees themselves, of which 7% of the personal contributions of employees in 2003 are all credited, and then 4% is deducted from the 20% paid by the employer and credited to the employees' personal accounts; individual participation

The insured person will deduct 11% from the 18% he pays and credit it to his personal account.

Personal accounts are the main basis for employees to calculate pensions when they retire.

Generally speaking, the longer the pension insurance premium is paid, the higher the wage base paid, and the larger the payment amount, the higher the personal account savings will be, and the more basic pension will be received at retirement, and vice versa.

Therefore, when employees encounter situations where an enterprise defaults on pension insurance premiums or underreports total wages and thus underpays pension insurance premiums, they have the right to report to the enterprise’s competent authorities, labor and social security supervisory agencies, social insurance institutions, trade unions at all levels, and the news media.

, to protect your own legitimate rights and interests.

At what standards should enterprises and employees pay pension insurance premiums?

Pension insurance premiums are paid jointly by the unit and individual employees. The unit pays 20% of the total monthly salary, and individual employees currently pay 7% of their monthly salary income.

However, when the average monthly salary of an individual employee in the current year is 300% higher than the average monthly salary of employees in the province in the previous year, the payment shall be 300% of the average monthly salary of employees in the province in the previous year. If it is lower than the average monthly salary of employees in the province in the previous year, 60%,

The payment is based on 60% of the average monthly salary of employees in the province in the previous year (the average monthly salary of employees in the province in 2002 was 747 yuan).

The proportion of individual employee contributions will be increased by one percentage point every two years until it reaches 8%.

The payment base of individual insured persons shall not be lower than the average monthly salary of employees in the province in the previous year, and the payment base of high-income earners shall not exceed 300% of the average monthly salary of employees in the province in the previous year.

Choose between 100% and 300% of your average monthly salary.

The contribution rate is currently 18%.