index is the average payment index

the average payment wage index refers to the average payment wage index of social co-ordinators participating in endowment insurance over the years, which is called the average payment wage index. It is obtained by dividing the annual payment base of the insured by the average salary of the local employees in the previous year, so it is calculated once a year. When you retire, add up the annual payment wage index and then divide it by the actual payment period.

the average individual contribution wage index is the average of the individual contribution wage index over the years from the year when the individual account was established to the last year when the employee retired. The employee's wage index in the current year is the ratio of the employee's wage in the current year to the average wage of employees in the whole province last year. The average contribution wage index is closely related to the level of pension. The higher the average contribution wage index, the higher the pension benefits. The individual average payment index reflects the average level of employees' payment wages in the whole payment period or several continuous payment periods, and is an important index for calculating excessive pension (pension).

legal basis

article 11 of the social insurance law of the people's Republic of China

the basic old-age insurance shall combine social pooling with individual accounts.

The basic old-age insurance fund consists of contributions from employers and individuals and government subsidies.

article 12 an employer shall pay the basic old-age insurance premium in proportion to the total wages of its employees as stipulated by the state and record it in the basic old-age insurance pooling fund.

employees should pay the basic old-age insurance premium according to the proportion of their salary 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 account respectively.

article 13 before employees of state-owned enterprises and institutions participate in the basic old-age insurance, the basic old-age insurance premiums that should be paid during the period of deemed payment shall be borne by the government.

when the basic old-age insurance fund is under-paid, the government gives subsidies.