Recently, the new social security policy in Hangzhou has sparked a huge discussion online. Its annual social security rules: the social security base will be adjusted from 3957 to 4462 starting from January 2023, announced and implemented from December 2023, paid from January 2023, and even to make up for the difference in 2023 Wait. According to the notice from the Hangzhou Tax Bureau, the new upper and lower limits for social security and medical insurance in Hangzhou will be implemented starting from December 2023, and the rules for making up for differences have been explained. As a professional human resources service group, Essent Group interprets Hangzhou's social security policies to help everyone better understand policies and apply rules.

01 Policy Interpretation

1. The scope of personnel participating in the annual adjustment of social security base:

Personnel under insurance in December 2023.

2. Specific compensation rules for annual adjustment of social security base:

(1) Social security three insurances (pension, unemployment, and work-related injury insurance)

Execution time: January 2023 (new personnel added in 2023 will be based on the starting month of participation);

Principle of making up for differences: New upper and lower limits will be implemented in December 2023, and differences will be made up from January to November;

Special personnel - retirees for the year 2023: Relevant compensation months are calculated up to the age month.

(2) Medical insurance

Execution time: December 2023;

Medical insurance adjustment rules: The new upper and lower limits will be implemented in December 2023, and no adjustment will be made from January to November.

02 Case

1. Individuals insured below the new lower limit (4462)

An employee has been insured with a base of 3957 since January 2023 and is currently still insured in the same unit (without interruption in 2023).

The annual adjustment execution is as follows:

Starting from the settlement period in December 2023, the social security medical insurance base will be adjusted to 4462, and the social security three insurances will be supplemented from January 2023 to November 2023; Medical insurance does not cover the difference.

2. Individuals insured above the old upper limit (22311)

An employee's insurance base starting from January 2023 is 22311223. The "social insurance premium payment salary for the current year" declared by HR for him/her is 30000, and he/she is still insured in the same unit (without interruption in 2023).

The annual adjustment execution is as follows:

Starting from the settlement period in December 2023, the social security medical insurance base will be adjusted to 24060, and the social security three insurances will be supplemented from January 2023 to November 2023; Medical insurance does not cover the difference.

3. Individuals insured between the new lower limit (4462) and the old upper limit (22311)

An employee's insurance base starting from January 2023 is 5000. In 2023, HR declared a "social insurance premium payment salary for the current year" of 6000, and they are still insured in the same unit (without interruption in 2023).

The annual adjustment execution is as follows:

Starting from the settlement period in July 2023, the social security and medical insurance base has been adjusted to 6000; Compensation for social security three insurances from January 2023 to June 2023; Medical insurance does not cover the difference.

With the increasing social security base year by year, the operating costs of enterprises are also gradually increasing. How to control labor costs has become a problem that enterprises must consider. As a professional human resources service organization, we assist enterprises in controlling labor costs and increasing personnel efficiency through services such as talent recruitment, job optimization, skill training, flexible employment, job and project outsourcing, and salary and performance reform.