The formula is: indexed monthly average payment salary = (average salary of employees in the whole province in last year/12× n) ∑ n1(average payment salary in n years/average salary of employees in the whole province in n years). In the formula, the average payment salary in N years is the average payment salary of employees one year before retirement and two years before retirement. Average wages of employees in the province in N years-the average wages of employees in the province one year before retirement and two years before retirement. N- the sum of the payment period of employees ∑-the payment wage index of n years.
Individual indexed wage is statistical data, which is defined as: the ratio of the annual contribution wage (a) of employees to the average social wage (a) in this year is the index of that year, such as a 1/A 1 is the index of the first year; Add the indexes of the past years (A 1/Al+A2/AZ+...+An/An) and divide by the payment period (n) to get the average index; Then multiply it by the average index (a1/al+a2/az+...+An/an)/n) and multiply it by the social average monthly wage (an) of the whole province in the previous year when employees retire, which is the individual indexed monthly average payment wage.
Pension basic pension consists of overall pension and personal account pension. The basic pension is determined according to factors such as individual cumulative payment years, payment wages, average salary of local employees, personal account amount, average life expectancy of urban population, etc. The so-called overall pension, formerly known as basic pension, refers to the pension paid to retirees from the overall fund composed of employer contributions; The so-called personal account pension refers to the pension paid to retirees from the accumulation of employees' personal accounts. The calculation method of these two pensions is: basic pension = overall pension+personal account pension.
The normal adjustment mechanism of basic old-age pension is established by the state to improve the basic old-age insurance benefits in a timely manner according to the average wage increase and price increase of employees. The pension level of retirees not only depends on the amount of retirement, but also increases with the adjustment of the national basic pension level. The calculation method is only to calculate and determine the pension benefits of the insured when they retire, but the insured will live for more than 25 years on average after retirement and need to share the fruits of economic and social development. Therefore, it is necessary to establish a normal adjustment mechanism for basic pensions. Many factors such as wage growth, price, pension fund and financial affordability need to be considered in the adjustment, which is determined by a certain proportion of the pension level of retirees in local enterprises and the average wage growth rate of employees in enterprises in the previous year.