With the continuous improvement of China's social security system, more and more people have begun to pay attention to their pension problems. Among the many insurance methods, flexible employment insurance and employee insurance are two common insurance methods. So, what is the difference between these two types of insurance in terms of receiving pensions?This article will explain it in detail for you.
1. Definition and difference between flexible employment insurance and employee insurance.
1.Flexible employment insurance: Flexible employment insurance refers to a way to participate in social insurance as a self-employed business, freelancer, temporary worker and other flexible employment status. Flexible employment participants are required to pay their own social insurance premiums, including pension insurance, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance.
2.Employee insurance: Employee insurance refers to a way for employees to pay social insurance premiums for them in accordance with national regulations. Employees' insurance includes endowment insurance, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance.
2. Differences in pension receipts.
1.The method of calculating and issuing pension insurance benefits is different.
The pension calculation and payment method for flexibly employed participants is: 139 personal account savings (of which 139 is the estimated number of months of pension payment). The pension calculation and payment method for employees insured is: basic pension + personal account pension. Basic pension = (average monthly salary of on-the-job employees in the province in the previous year + average indexed monthly contribution salary) 2 Payment period 1%. Personal account pension = personal account savings 139.
2.The pension insurance contribution base is different.
The pension insurance contribution base for flexible employment participants can be selected between 60% and 300% of the average salary of employees in urban units of all calibers in the province. The pension insurance payment base of the employee is the average monthly salary of the employee in the previous year.
3.The proportion of pension insurance contributions is different.
The pension insurance contribution ratio for flexible employment participants is 20%, of which 12% is included in the overall planning** and 8% is included in the personal account. The proportion of pension insurance contributions for employees is 8%, of which 6% is included in the overall planning** and 2% is included in the personal account.
4.The pension adjustment mechanism is different.
The pension adjustment of flexible employment participants is mainly linked to the increase in the average salary of on-the-job employees. The pension adjustment of the insured personnel is mainly linked to the average monthly indexed salary of the employee and the increase of the average monthly salary of the on-the-job employees in the province in the previous year.
To sum up, there are certain differences between flexible employment insurance and employee insurance in terms of pension payment. Employees have relatively more advantages in the calculation and distribution of pension benefits, payment base, payment ratio and pension adjustment. Therefore, if conditions permit, it is recommended to choose the way of employee insurance to obtain better pension benefits.
However, for flexible employees, the flexible employment insurance method still has certain advantages, such as self-selection of the payment base, lower contribution ratio, etc. In the actual situation, the insured should choose the insurance method that suits them according to their own economic situation and needs. At the same time, we should also continue to improve the social security system and provide more preferential policies for flexible workers to reduce their pension burden.