Adjustment of the Standard of Social Security Payment - China
June 3, 2012 By UB & Co. Attorneys and Counselors
Shanghai Human Resources and Social Security Bureau issued the New Standard of Social Security Payment in Shanghai (the “New Standard”) on March 31st, 2012. The New Standard has come into effect on April 1st, 2012 and will expire on March 31, 2013.
March 31st, 2011.
The New Standard increases the payment base (the “Base”), which refers to the number used to calculate the amount of the social security payments.
The new standard regarding the upper limit and the lower limit of the Base are summarized as follows:
1. The Base
The Base of the social security payments should be the actual salary of the employee, however, the upper limit is RMB 12,933 and the lower limit is RMB 2,599. In other words, if an employee’s actual salary is over RMB 12,933, his/her Base of the social security payments should still be RMB 12,933, and if an employee’s actual salary is below RMB 2,599, his/her Base should still be RMB 2,599.
2. The Cost
The cost of the social security payments should be born divided as follows:
Born by the employee: 11% of the Base;
Born by the employer: 37% of the Base.
The amount of the social security payment is a percentage of the Base. Since the Base is increased every year, the social security payment will be increased accordingly.
ABOUT THE AUTHOR: UB & CO.
UB & CO Attorneys and Counselors is an international law firm with presence in Greater China, United States and Latin America that provides legal services to local and international clients, including multinational corporations, investment funds, social enterprises, environmental enterprises, NGOs, government organizations and high net worth families and individuals. We have the depth, experience, technical skills and flexibility to handle multi-jurisdictional transactions, commercial disputes and regulatory matters.
Our focus is on "legal strategy consulting" for market entry, joint ventures, foreign investment, and private equity and venture capital investments.
Copyright UB & Co. Attorneys and Counselors
More information about UB & Co. Attorneys and Counselors
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
The New Standard increases the payment base (the “Base”), which refers to the number used to calculate the amount of the social security payments.
The new standard regarding the upper limit and the lower limit of the Base are summarized as follows:
1. The Base
The Base of the social security payments should be the actual salary of the employee, however, the upper limit is RMB 12,933 and the lower limit is RMB 2,599. In other words, if an employee’s actual salary is over RMB 12,933, his/her Base of the social security payments should still be RMB 12,933, and if an employee’s actual salary is below RMB 2,599, his/her Base should still be RMB 2,599.
2. The Cost
The cost of the social security payments should be born divided as follows:
Born by the employee: 11% of the Base;
Born by the employer: 37% of the Base.
The amount of the social security payment is a percentage of the Base. Since the Base is increased every year, the social security payment will be increased accordingly.
ABOUT THE AUTHOR: UB & CO.
UB & CO Attorneys and Counselors is an international law firm with presence in Greater China, United States and Latin America that provides legal services to local and international clients, including multinational corporations, investment funds, social enterprises, environmental enterprises, NGOs, government organizations and high net worth families and individuals. We have the depth, experience, technical skills and flexibility to handle multi-jurisdictional transactions, commercial disputes and regulatory matters.
Our focus is on "legal strategy consulting" for market entry, joint ventures, foreign investment, and private equity and venture capital investments.
Copyright UB & Co. Attorneys and Counselors
More information about UB & Co. Attorneys and Counselors
View all articles published by UB & Co. Attorneys and Counselors
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
