The calculation method of endowment insurance payment base is as follows: the endowment insurance payment base is the average annual salary of employees in the previous year, and the monthly endowment insurance payment base is the average annual salary of employees in the previous year divided by 12. Therefore, the monthly pension insurance unit payment is equal to the monthly pension insurance payment base multiplied by 20%, and the monthly individual payment is equal to the monthly pension insurance payment base multiplied by 8%. It should be noted that the payment base of endowment insurance has upper and lower limits, of which the upper limit is: if the wage income of employees exceeds 3 times the average monthly salary of employees in the previous year, the excess will not be included in the payment base; The lower limit is: if the salary income of employees is lower than 60% of the average monthly salary of employees in the previous year, 60% of the average monthly salary of employees in the previous year will be used as the payment base.

People's Republic of China (PRC) social insurance law

Article 12

The employing unit shall pay the basic old-age insurance premium according to the proportion of the total wages of its 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.