The difference between resident pension and flexible employment pension

Mondo Social Updated on 2024-01-31

The insured objects are different: the resident pension insurance is mainly aimed at urban and rural residents who have not participated in the basic pension insurance for urban employees;The flexible employment endowment insurance is mainly for individual industrial and commercial households without employees, part-time employees who do not participate in the basic endowment insurance at the employer, and other flexible employees.

Different payment methods: resident pension insurance is paid annually, and the payment standard is set to multiple grades, which are independently chosen by the insured;The flexible employment pension insurance is paid on a monthly basis, and the payment base is the average monthly salary of local on-the-job employees in the previous year, and the contribution ratio is 20%, of which 8% is credited to the personal account.

The conditions for receiving benefits are different: the resident pension insurance requires the insured to be at least 60 years old and have paid contributions for 15 years;Flexible employment pension insurance requires reaching the statutory retirement age and having paid contributions for at least 15 years.

The pension calculation method is different: the pension of the resident pension insurance is composed of the basic pension and the personal account pension;The pension of flexible employment pension insurance consists of a basic pension, a personal account pension and a transitional pension.

Take Mr. Zhang and Ms. Li as examples, Mr. Zhang is a freelancer who chooses to participate in flexible employment pension insuranceMs. Li is a housewife who chooses to participate in the resident pension insurance. They all chose the lowest payment bracket and all of them have paid for 15 consecutive years. Suppose the average monthly salary of on-the-job workers in their area is 5,000 yuan.

According to the calculation, Mr. Zhang needs to pay 1,000 yuan (20% of 5,000 yuan) per month, of which 400 yuan will be credited to his personal accountMs. Li needs to pay an endowment insurance premium of 100 yuan per year. When they meet the conditions for receiving a pension, Mr. Zhang's pension will include a basic pension, a personal account pension and a transitional pensionMs. Li's pension only has a basic pension and a personal account pension.

The Social Insurance Law of the People's Republic of China stipulates the institutional framework and management principles of China's basic pension insurance, and clarifies the scope of participation in resident pension insurance and flexible employment pension insurance, payment methods, and conditions for receiving benefits.

The Decision on Improving the Basic Pension Insurance System for Employees of Enterprises has made specific provisions on the insurance policy for flexibly employed persons, and clarified the insurance conditions, payment base and contribution ratio of flexibly employed persons.

According to the actual local situation, the local government has also formulated specific implementation rules and operating measures, and made detailed provisions on the registration, payment management, and treatment accounting of resident pension insurance and flexible employment pension insurance.

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