"Have you ever heard of that?As long as you pay pension insurance every 5 years, the pension after retirement can be upgraded to a higher level!Is this true or false?"I see such discussions on social platforms from time to time. Moreover, many people also believe that the pension of flexible employees who participate in the insurance will be less than that of the employees who participate in the insurance in the unit.
How did these ideas come about?Are they justified?How do we understand pension benefits?The official release of the latest response to this, let's clarify these misunderstandings together.
Every 5 years of social security payment, the pension is in a higher level" is a typical misconception.
This statement actually originates from China's retirement and retirement policies before the implementation of the pension insurance system. At that time, different years of service would enjoy different pension benefits in accordance with the provisions of the Interim Measures on the Retirement and Retirement of Workers (Guo Fa 1978 No. 104).
Those who contributed to the revolutionary cause during the War of Resistance Against Japanese Aggression will receive a pension of 90 per cent of their standard salary if certain conditions are metThose who were engaged in the revolutionary cause during the War of Liberation received a pension of 80 per cent of their standard salary.
For those who have participated in revolutionary work since the founding of the People's Republic of China and have served continuously for more than 20 years, they can receive 75% of the standard salary as a pension.
For those who have worked continuously for 10 years but not for 15 years, their pension is paid at 60 per cent of the standard salary. If the pension is less than $25, it will be paid at $25.
However, with the continuous innovation, growth and improvement of China's social pension insurance systemThe current pension insurance payment period is calculated on the basis of "months", so the view that "every additional five years of payment, the pension will rise by one level" is no longer applicable.
The pension received by flexible employees is not necessarily lower than that of employees insured by the unit. Although there are differences in the way in which flexible employees and current employees pay social insurance, whether they are employees of enterprises or flexible employees, they determine the amount of pension according to the same calculation method, and there is no difference in treatment.
The amount of the pension does not depend on the individual's professional status, but pays more attention to factors such as the number of years of contributions, the level of contributions and the number of months of pension payment.
But to clarify,Although the individual participation of flexible employees will be the same as that of those who are insured by the employer, the contribution ratio is indeed higher. The pension insurance contribution rate for flexible employees is 20%, while the contribution rate for in-service employees is only 8%, a difference of more than 2 times.
At the same time, most of the fees paid by flexible employees need to go into the overall account, and all the fees paid by the employees themselves go into the personal account, which is also one of the reasons for the misunderstanding.
For those who are flexibly employed, it is necessary to be careful not to choose to pay social security at the affiliated unit. This practice is illegal and, if discovered, will affect the enjoyment of benefits and may result in penalties. Therefore, the benefits of doing so outweigh the costs.
In addition, the affiliated unit also needs to bear all the social security costs by itself, and also needs to pay the other three insurances and provident fund at the same time, which is more expensive and not cost-effective.
Therefore, we should not simply compare the pension benefits of flexible employees and in-service employees, but also have a deeper understanding of their real situation under the social security system. By figuring out the formula for calculating pensions and how to pay them, we can better plan for early investments and enjoy benefits such as social security legally and efficiently.
In general, there are still some misunderstandings about pension treatment. For example, some people think that for every 5 years of payment period, the pension can be raised by a grade;Another example is that some people think that if an individual participates in insurance, the pension they get will be less than that of the unit, and so on. We must have a correct and comprehensive understanding of this.
The level of pension treatment has nothing to do with my identity, but is closely related to factors such as the number of years of payment, the pension insurance payment index and so on. It is important to know that a correct understanding of social security policies is crucial to the future life planning of each of us.