If two people have the same conditions, one pays social security for themselves and the other pays social security for the company, how much is the difference in retirement benefits?
Under some social security questions and answers, friends often ask such questions: "I am a personal social security payer, and they all say that the personal social security pay is much lower than the corporate social security pay after retirement. Do I want to switch to corporate social security pay? ?".
Others said with reason and reason, "I pay social insurance personally, and a relative of mine is paid by a company. We have the same length of service, but his retirement benefits are higher than mine, so the company's social security pension must be higher. in personal social security.”
In fact, the level of retirement pension has nothing to do with personal social security or corporate payment. The level of retirement pension is directly related to the length of service, payment period, payment base, and retirement location. Those who think that personal social security retirement benefits are low and enterprises pay social security retirement benefits. For those who are tall, you must understand this issue well.
If two people have the same conditions, one pays social security for themselves and the other pays social security for the company, how much is the difference in retirement benefits?
- Working age.
The length of service is not applicable to everyone. It is only applicable to those who worked before 1996 (in some areas, it was before 1992, depending on the time when the local endowment insurance was paid), because before that, there was no unified endowment insurance policy in the country. Therefore, pension benefits are calculated according to seniority. If people who worked before this time, the length of service directly affects the level of pension, and the longer the length of service, the more natural pension.
The people who started working after 1996 are basically those who normally participate in the old-age insurance. The length of service has basically no effect on the pension.
If two people have the same conditions, one pays social security for themselves and the other pays social security for the company, how much is the difference in retirement benefits?
- Payment period.
The longer the contribution period, the higher the pension, and vice versa.
The term of payment refers to the number of years of formal participation in pension insurance, that is, the number of years accumulated by individual pension accounts after 1996. The term of payment is calculated cumulatively, that is, it does not matter if the file is broken in the middle. Calculations do not have to be continuous in order to be calculated.
- Payment base.
Contribution base is the most critical and core factor that affects the amount of pension. This may also be an important reason why many people think that personal social insurance pays less than corporate social security pensions.
Because individuals pay social security, they are bound to pay much more than those who pay social security in enterprises.
Taking endowment insurance as an example, at present, the basic requirement all over the country is that enterprises should pay 20% and individuals should bear 8%.
In the same situation, if an individual pays, in order to maintain a pension at the same level as that of an enterprise employee, the individual needs to pay 840 yuan per month, which is much higher than the 240 yuan for working in an enterprise. In order to save costs, many people choose the lowest payment base, which is far from the standard of enterprise personnel.
This part of the money is completely entered into the personal pension account and becomes the most important part of calculating the pension, so it also separates the pension of individual and enterprise personnel.
If two people have the same conditions, one pays social security for themselves and the other pays social security for the company, how much is the difference in retirement benefits?
- The place of retirement.
The pension is related to the local average salary of the previous year. Even if the staff with the same length of service, the same payment period, and the same payment base, because the retirement location is different, the pension is completely different. For example, people who retire in Shenzhen are better than others under the same conditions. Urban pensions are high because Shenzhen has the highest average salary in the country.
To sum up, whether an individual pays or an enterprise pays social security, the key lies in the amount paid and the location of the payment, which has nothing to do with whether it is paid by an individual or a business. Social security is also a realistic product, the more you pay, the more you get, whether it is an individual or a business.