The Shenzhen Municipal Social Insurance and Fund Management Bureau will adjust calculation bases of social insurance payment and reimbursement starting this month on the base salary standard of on-the-job employees in 2019.
The annual salary of on-the-job employees in nonprivate sectors in 2019 was 127,757 yuan (US$18,256), or 10,646 yuan a month, 1,337 yuan more than 2018, the bureau said.
The average monthly salary of all employees in Guangdong Province was 6,756 yuan last year, while the average monthly salary of on-the-job employees in nonprivate sectors in Guangzhou was 10,292 yuan.
Based on the salary standard, the payment for medical insurance, which is graded at three tiers, will be adjusted accordingly.
In Tier I, the payment for basic medical insurance is calculated on the base of 60 percent to 300 percent of the average salary standard of the previous year, or between 6,388 and 31,938 yuan. The payment ratio is 7.2 percent, in which the employer pays 5.2 percent and the employee pays 2 percent.
In Tier II, the payment ratio for basic medical insurance is 0.8 percent of the average monthly salary in the previous year. The employer shares 0.6 percent, while employee shares 0.2 percent.
In Tier III, the employer pays 0.45 percent to the standard of the average monthly salary of the previous year and an employee pays 0.1 percent.
The payments for maternity insurance, solely paid by employers, and retirement pension will also be adjusted according to the salary standard.
For pension payment, the payment should be calculated on the base of the employee’s salary in the previous month. It is capped at three times the average salary of all employees in Guangdong in 2019 and guaranteed at the standard of 2,200 yuan, the minimum wage standard of Shenzhen.
The employees pay 8 percent according to the standard, while employers pay 14 percent for employees with Shenzhen hukou, and 13 percent for employees without Shenzhen hukou.