The individual contribution index refers to the proportion of a person's contribution to social pension insurance, which is usually expressed as a percentage. There are several factors that need to be taken into account in calculating the individual contribution index, including the individual's salary income, age, and years of contributions. The following is a detailed description of how the individual contribution index is calculated.
1. Individual payment base
The determination of the individual contribution base is the basis for calculating the individual contribution index. According to the current regulations of our country, the individual contribution base is the average monthly salary of the person in the previous year. If the individual's salary income is higher than 300% of the local average wage, 300% of the average salary shall be used as the payment base;On the contrary, if it is less than 60% of the average salary, 60% of the average salary will be used as the payment base.
Second, the proportion of payment
The individual contribution ratio refers to the ratio of the social pension insurance premium payable by the individual to the individual contribution base. At present, the basic pension replacement rate stipulated in China's pension insurance system is 40%, that is, the pension received after retirement is equivalent to 40% of the salary income before retirement. Therefore, the proportion of individual contributions is also set accordingly at around 8% (40% 12). Specifically, the proportion of individual contributions is uniformly stipulated by the state, and all localities can adjust it according to the actual situation.
3. Payment period
The number of years of individual contributions refers to the number of years of social pension insurance premiums paid from the beginning of work to retirement. The longer the individual contributions, the more money will accumulate in the personal account, so that the more pension can be received. According to China's current regulations, the minimum payment period for individuals is 15 years, and the part exceeding 15 years can be cumulatively calculated. At the same time, those who have reached the statutory retirement age but have paid for less than 15 years can continue to pay until they have reached the end of 15 years.