Flexible employment pays 10,000 yuan, and enterprise employees pay 12,000 yuan.
Currently, there are approximately 140 million retirees in China, and the state provides them with a pension security of about 6 trillion yuan annually. Participating in employee pension insurance and receiving pensions upon retirement has become the choice for the vast majority of young people. However, attentive friends have noticed that flexible employment personnel can save more on their pension insurance payments. Why is it that flexible employment personnel who contribute 10,000 yuan and enterprise employees who contribute 12,000 yuan receive the same pension?
Pension insurance contributions for flexible employment:
According to national regulations, flexible employment personnel participate in pension insurance at a rate of 20% of the contribution base. Moreover, they can freely choose the contribution base between the local minimum and maximum limits.
Since flexible employment personnel bear the full cost of pension insurance, most people choose to participate in insurance with the minimum contribution base.
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For example, in Shandong Province in 2023, the minimum and maximum contribution bases are 4,242 yuan to 21,207 yuan. If one chooses to contribute at the minimum base, they would need to pay 848.4 yuan per month, totaling 10,180.8 yuan per year.
Enterprise employees' contributions are split, with the employee bearing 8% of the contribution base and the employer bearing 16%. With the same base of 4,242 yuan, the employee would need to pay 339.36 yuan per month, and the employer would need to pay 678.72 yuan. The total monthly contribution would be 1,018.08 yuan, and the annual amount would be 12,216.96 yuan.
How is the pension benefit calculated?
With the same pension insurance contribution base of 4,242 yuan, whether for flexible employment personnel or unit employees, the pension calculation formula is based on the following two parts:
① Basic pension, which is equal to the retirement year's pension payment base × (1 + the individual's average contribution index) ÷ 2 × years of contribution × 1%.The base for pension calculation is uniformly stipulated by the province and is generally divided into three categories: one for provincial enterprises, one for Heze City enterprises, and one for other situations. Heze City enterprises use the full scope social average wage, which was 7069 yuan last year. The most widely used category is the 7468 yuan for the 2023 fiscal year. The highest for provincial enterprises in the 2023 fiscal year is 7682 yuan. This is mainly formed by historical reasons, and in the future, it will all be unified to the full scope social average wage. Whether it is enterprises or flexible employment personnel, there is generally no difference in the same region.
The contribution index is actually the contribution base of the year divided by the social average wage of the previous year. 4242 yuan divided by 7069 yuan results in 0.6. The average of all contribution indices is the average contribution index.
To put it simply, with an average contribution index of 0.6, for every full year of contribution, one receives 0.8% of the pension calculation base. That is to say, whether it is enterprise contribution or flexible employment personnel contribution, upon retirement last year, the basic pension would be 59.74 yuan/month.
② Personal account pension = Balance of the individual's social insurance account ÷ The number of months determined by the retirement age.
With a contribution base of 4242 yuan, the amount recorded in the personal account for flexible employment personnel is 8% of the contribution base, which is 339.36 yuan per month. For enterprise employees, the amount recorded in the personal account is the personal contribution part, also 339.36 yuan per month. That is to say, under the same contribution time, the balance in the personal account for both types of insurance participants will be the same.
The number of months for the calculation of the personal account pension is 195 months at the age of 50, 170 months at the age of 55, and 139 months at the age of 60. The retirement age for female enterprise employees and female flexible employment personnel may be different, but the number of calculation months will be the same under the same retirement age. Therefore, the personal account pension is generally the same.
Considering the above situations, it is indeed true that under the same contribution base, the amount of money paid by flexible employment personnel is 20% less than that paid by enterprise employees, but the pension remains unchanged, which is also a caring policy of the state for flexible employment personnel.
In fact, for employment difficulties such as those aged 4050, they can also apply for a 3-year (up to 5 years for the first application if less than 5 years from retirement) flexible employment personnel social security subsidy, which can all help flexible employment personnel to participate in insurance smoothly. #Pension Calculation# #Headline Creation Challenge#
Currently, there are approximately 140 million retirees in China, and the state provides them with a pension security of about 6 trillion yuan annually. Participating in employee pension insurance and receiving pensions upon retirement has become the choice for the vast majority of young people. However, attentive friends have noticed that flexible employment personnel can save more on their pension insurance payments. Why is it that flexible employment personnel who contribute 10,000 yuan and enterprise employees who contribute 12,000 yuan receive the same pension?
Pension insurance contributions for flexible employment:
According to national regulations, flexible employment personnel participate in pension insurance at a rate of 20% of the contribution base. Moreover, they can freely choose the contribution base between the local minimum and maximum limits.
Since flexible employment personnel bear the full cost of pension insurance, most people choose to participate in insurance with the minimum contribution base.
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For example, in Shandong Province in 2023, the minimum and maximum contribution bases are 4,242 yuan to 21,207 yuan. If one chooses to contribute at the minimum base, they would need to pay 848.4 yuan per month, totaling 10,180.8 yuan per year.
Enterprise employees' contributions are split, with the employee bearing 8% of the contribution base and the employer bearing 16%. With the same base of 4,242 yuan, the employee would need to pay 339.36 yuan per month, and the employer would need to pay 678.72 yuan. The total monthly contribution would be 1,018.08 yuan, and the annual amount would be 12,216.96 yuan.
How is the pension benefit calculated?
With the same pension insurance contribution base of 4,242 yuan, whether for flexible employment personnel or unit employees, the pension calculation formula is based on the following two parts:
① Basic pension, which is equal to the retirement year's pension payment base × (1 + the individual's average contribution index) ÷ 2 × years of contribution × 1%.The base for pension calculation is uniformly stipulated by the province and is generally divided into three categories: one for provincial enterprises, one for Heze City enterprises, and one for other situations. Heze City enterprises use the full scope social average wage, which was 7069 yuan last year. The most widely used category is the 7468 yuan for the 2023 fiscal year. The highest for provincial enterprises in the 2023 fiscal year is 7682 yuan. This is mainly formed by historical reasons, and in the future, it will all be unified to the full scope social average wage. Whether it is enterprises or flexible employment personnel, there is generally no difference in the same region.
The contribution index is actually the contribution base of the year divided by the social average wage of the previous year. 4242 yuan divided by 7069 yuan results in 0.6. The average of all contribution indices is the average contribution index.
To put it simply, with an average contribution index of 0.6, for every full year of contribution, one receives 0.8% of the pension calculation base. That is to say, whether it is enterprise contribution or flexible employment personnel contribution, upon retirement last year, the basic pension would be 59.74 yuan/month.
② Personal account pension = Balance of the individual's social insurance account ÷ The number of months determined by the retirement age.
With a contribution base of 4242 yuan, the amount recorded in the personal account for flexible employment personnel is 8% of the contribution base, which is 339.36 yuan per month. For enterprise employees, the amount recorded in the personal account is the personal contribution part, also 339.36 yuan per month. That is to say, under the same contribution time, the balance in the personal account for both types of insurance participants will be the same.
The number of months for the calculation of the personal account pension is 195 months at the age of 50, 170 months at the age of 55, and 139 months at the age of 60. The retirement age for female enterprise employees and female flexible employment personnel may be different, but the number of calculation months will be the same under the same retirement age. Therefore, the personal account pension is generally the same.
Considering the above situations, it is indeed true that under the same contribution base, the amount of money paid by flexible employment personnel is 20% less than that paid by enterprise employees, but the pension remains unchanged, which is also a caring policy of the state for flexible employment personnel.
In fact, for employment difficulties such as those aged 4050, they can also apply for a 3-year (up to 5 years for the first application if less than 5 years from retirement) flexible employment personnel social security subsidy, which can all help flexible employment personnel to participate in insurance smoothly. #Pension Calculation# #Headline Creation Challenge#