What does the increase in social security payment base mean?

April every year is an important time to increase the social security payment base. As the average social wage rises, the social security payment base in various places will generally increase year by year.

This may mean that the salary received will shrink, which does not seem like a good thing, but according to the principle of paying more for social security, it is really a good thing: the base of social security payment increases, and when individuals pay more, the company pays more. There are also more personal contributions, which means more money is deposited into pension accounts and medical insurance accounts every month, that is, more money is on the medical insurance card. This is of course a good thing for needs such as seeing a doctor and buying medicine. And after retirement, the monthly pension you can receive will also increase.

In addition to raising the social security base, this year the Ministry of Human Resources and Social Security will also gradually implement major adjustments such as universal insurance registration, an increase in basic pensions, and a reduction in unemployment insurance premiums. Let me explain them one by one below.

Comprehensive implementation of universal insurance registration

This year, the Ministry of Human Resources and Social Security will complete key aspects of the plan and fully implement universal insurance registration.

Tang Jisong, director of the Social Insurance Management Center of the Ministry of Human Resources and Social Security, once said that the expansion of social security will focus on cities and towns, continue to focus on small, medium and micro enterprises, and flexible employment personnel, and explore and promote new types of online employment, entrepreneurship, etc. Business groups are insured.

In general, social insurance coverage continues to expand. As of the end of 2016, the number of people insured by basic pension, basic medical care, unemployment, work-related injury and maternity insurance was approximately 887 million, 748 million, 181 million, 219 million and 184 million respectively.

Basic pension increases

In 2017, the average increase in social security pensions reached 5.5%, which was lower than last year’s 6.5%.

The annual social security pension is determined comprehensively by taking into account the current economic and social development situation, the pension levels of retirees of enterprises and government institutions, and other factors. Although it has not risen as high as in previous years, it has still risen. Moreover, this increase outperforms the increase in prices (the current increase in prices is around 2%), which is still acceptable.

Unemployment insurance premium rate reduction

Starting from January 1, 2017, provinces (autonomous regions and municipalities) that have decided that the total unemployment insurance premium rate is 1.5% can reduce the total premium rate to 1.5%. It will be reduced to 1%, and the period for reducing the rate will be implemented until April 30, 2018.

This is a good thing for major companies. There are 22 provinces in the country that meet the basic conditions for reducing unemployment insurance premiums. If all the above-mentioned provinces reduce fees, it is expected to reduce costs for enterprises by another 23.4 billion yuan.