Beijing Releases 2011 Average Income and 2012 Social Insurance Wage Base

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Apr. 13 – The Beijing Social Security Fund Management Center released the “Notice from Beijing Human Resources and Social Security Bureau and the Beijing Statistics Bureau on the 2011 Beijing Average Income” on April 11, specifying the new wage base for calculating social security contributions for the year 2012.

The 2011 average annual income in Beijing was RMB56,061 and the monthly average was RMB4,672. As such, the bases for social insurance contributions in 2012 are as follows:

  • The average base for social insurance contributions is RMB4,672.
  • The maximum monthly base for social insurance contributions is capped at 300 percent of the average monthly wage in 2011, which adds up to RMB14,016.
  • The minimum monthly base for social insurance contributions for “flexible employees” is RMB3,270, which is 70 percent of the average monthly wage in 2011.
  • The minimum monthly base for social insurance contributions for those who participate in basic health, occupational injuries, and maternity insurance is RMB2,803, which is 60 percent of the average monthly wage in 2011.
  • The minimum monthly base for social insurance contributions for those who participate in pension and unemployment insurance is RMB1,869, which is 40 percent of the average monthly wage in 2011.

“Flexible employees” are those who are not full-time employees and work temporarily and flexibly, including the dismissed, resigned and the self-employed with files at local labor and personnel authorities. This also includes those who retired early with approval from the local labor and personnel authorities, registered unemployed personnel, individual businessmen, entrepreneurs and their employees.

Social insurance contributions for “flexible employees”
Basic pension and unemployment insurance

  • Those who calculate social security contributions based on the average wage have to pay a monthly premium of RMB934.4 for basic pension insurance and RMB33.64 for unemployment insurance.
  • Those who calculate social security contributions based on 60 percent of the average wage have to pay a monthly premium of RMB560.6 for basic pension insurance and RMB56.06 for unemployment insurance.
  • Those who calculate social security contributions based on 40 percent of the average wage have to pay a monthly premium of RMB373.8 for basic pension insurance and RMB22.43 for unemployment insurance.

Health insurance

  • Those who don’t have health insurance stipend shall pay a monthly premium of RMB228.9, while those who receive stipend pay RMB32.7 per month.

Dezan Shira & Associates is a specialist foreign direct investment practice and can advise international companies investing in China on the country’s complete legal, tax and operational issues. The firm was established in 1992 and maintains 12 offices throughout China, in addition to practicing in Hong Kong, India, Vietnam and Singapore. The firm can advise on all matters of China HR, payroll and costs. Please contact the firm at china@dezshira.com or visit our web site at www.dezshira.com.

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