Seniority and retirement wages are paid more, received more, paid for a long time, and received for a long time
In China, the basic principles of pension insurance are:"Pay more, pay more, pay more"。In other words, the longer an individual works and the longer the cumulative contribution period, the higher the level of pension benefits received after retirement.
Pension insurance is an important part of China's social security system, which aims to ensure the basic living needs of the majority of retirees. According to China's pension insurance system, the pension received by an individual after retirement is closely related to the number of years of contributions, the payment base and the amount of personal account accumulation.
The length of service refers to the amount of pension contributions accumulated since entering the labor market. The longer the length of service, the longer the payment period, and the greater the accumulated payment amount. Therefore, after retirement, the longer the working person, the higher the pension benefits will naturally be received.
To get a higher pension, one can do so by increasing the number of years of pension contributions. Those who have a labor unit can pay basic pension insurance through the unit, so the cost of contribution is relatively low.
Those who do not have a place of employment can choose to pay basic pension insurance according to the flexible employment method, or they can accumulate years of service.
It should be noted that in addition to the number of years of payment, the accumulation of personal accounts will also affect pension benefits. Therefore, in the process of paying pension insurance, the payment period should be reasonably arranged, and the accumulation of personal accounts should be increased as much as possible, so as to receive more pensions after retirement.
Of course, we will explain it with a simple example.
Let's say we have two colleagues, Zhang San and Li Si, who have both worked in the same company all their lives, but their seniority and contributions are not the same.
Zhang San has worked in the company for 30 years, with a monthly salary of 5,000, and his salary has increased slightly every year. In the past 30 years, Zhang San has been paying pension insurance without stopping.
Li Si has worked in the company for 20 years, and his monthly salary is also 5,000 yuan, but due to changing jobs in the middle of the year, the pension insurance payment has been discontinued, and the total payment period is 10 years less than Zhang San.
According to Hong Kong's pension system, the pension calculation method of the two Members is broadly as follows.
1.Basic pension: calculated according to the number of years of individual contributions and the average salary of the local society. The longer the contribution period, the higher the basic pension. In this example, Zhang San's basic pension is higher than Li Si's because he pays 10 more years.
2) Personal account pension: calculated according to the amount of personal contributions and interest rate. The higher the contribution amount, the higher the personal account pension. In this example, if Zhang San and Li Si's personal account amount are the same, Zhang San's personal account pension will be higher because he has a longer contribution period.
3) Transitional pensions: This is a form of compensation for workers who retire at the beginning of their careers, when the pension system may be different from that of a later system. This part is usually related to the length of service, and the longer the length of service, the higher the transitional pension.
Considering these three aspects, Zhang San's retirement salary is likely to be higher than Li Si's. Because Zhang San has long working hours and many years of payment, he will have more advantages when calculating pensions.
From this example, it can be seen that the longer the length of service, the higher the retirement salary, which is in line with the design principles of China's pension insurance system. Of course, the specific retirement salary also needs to be determined according to factors such as individual contributions and the average social salary.