[Direct answer]In the Beijing area, it is generally not in compliance with legal requirements for employers to pay social insurance based on the local minimum payment base. According to Article 60, Paragraph 2 of the Social Insurance Law of the People's Republic of China (adopted on October 28, 2010, and implemented on July 1, 2011), employers shall declare and pay social insurance premiums in full and on time, and may not defer or reduce payments except for force majeure or other legal reasons. Where the average monthly wage of employees exceeds three times the average monthly wage of local employees in the previous year, the payment base shall generally be determined based on the employee's own salary; where it does not exceed three times, it shall generally be determined based on the employee's own salary. The situations subject to the minimum base are mainly limited to two types: employees whose wages are indeed lower than the local minimum wage standard, and special circumstances where the local government has clear regulations on the upper and lower limits of the payment base. Therefore, if the monthly wage of the worker is significantly higher than the local minimum payment base, and the employer still declares based on the minimum payment base, it constitutes failure to pay in full, and the worker may claim the arrears in accordance with the law. It should be noted that, unlike simple non-payment, the issue of base arrears usually still needs to be handled by the social insurance agency, while the loss of treatment arrears caused by this belongs to the scope of labor disputes, and the worker may claim compensation from the arbitration agency.Labor arbitration and work-related injury compensationThe column provides specific explanations on the claim for the difference between the social security base and the actual benefits.

I. Problem Background and Typical Scenarios

Workers who consult such issues are often in three situations: First, they find that they have been paying social insurance at the minimum base rate for a long time, but their actual salary is much higher than that; Second, they work in high-paying or technical positions, where performance bonuses account for a large proportion of their salary; Third, they find that their social insurance period and base rate are insufficient when preparing to leave their jobs or have children, which affects the calculation of their benefits. Common confusions include: whether it is legal for employers to pay at the minimum base rate, whether they can request to make up the difference, and what benefits this practice will affect. In practice, a key judgment is the salary scope: the social insurance base rate is generally determined based on the total salary, and monetary income such as bonuses, allowances, and subsidies usually need to be included. Declaring only the basic salary is often incomplete. Therefore, workers should first calculate the composition of their total salary and then compare it with the social insurance payment base rate to determine the difference. Another common misunderstanding is that as long as the employer pays social insurance for them every month, it is compliant. In fact, the payment base rate also belongs to a statutory declaration obligation, and the underpayment part also constitutes insufficient payment. To assess the specific impact of the difference on benefits, you can refer to the following materials:Intellectual property protection and corporate lawColumn; an explanation of the progress of the dispute process and the request for design, which can be referred to for referenceSpecial services and other casesColumn.

II. Key points of contention

Focus One: The composition of the total wage and whether performance bonuses are included. Focus Two: The scope of application and exceptions to the minimum base amount rule. Focus Three: The employer's obligation to declare and the worker's burden of proof. Focus Four: The subject and procedure for handling the payment of arrears. Focus Five: How to claim the wage difference caused by an insufficient base amount. Focus Six: The impact of the base amount on the calculation of work-related injury and maternity benefits. Focus Seven: The adjustment of the base amount across years and its coordination with local policies. Focus Eight: Whether the confirmation documents signed by workers are legally binding. In addition, attention should also be paid to the adjustment and coordination of the upper and lower limits of the payment base across years, as well as the higher burden of proof required when the payment base and the tax declaration base are inconsistent.

III. Professional analysis by Henglue Law Firm

From the perspective of social insurance practice, whether the base amount dispute can be effectively resolved depends on the quality of three preparatory works. The first is the accurate accounting of total wages. In practice, the greatest controversy is whether floating performance bonuses, commissions, and year-end bonuses belong to the total wages. It is recommended to sort out the pay slips, bank statements, and personal income tax declaration records of the past one to two years to form verifiable annual income data and distinguish between fixed and floating parts. The second is to verify the policy basis. The minimum base amount and capping rules are determined by local authorities, and the standards vary from year to year and are subject to policy adjustments. Therefore, it is necessary to check the upper and lower limits of the payment base for each year instead of making general claims. The third is to accurately express the claims. The request for making up the difference in payment and the request for compensation for the difference in treatment are of different nature. The former is handled by the social insurance agency, while the latter belongs to labor disputes and needs to be claimed separately. When handling labor dispute cases, our firm usually plans these rights and interests together with the resolution of disputes. For example, in a case involving multiple workers, when the workers request to resume the labor relationship and improve the employment registration, the lawyer not only claims the illegal termination but also includes the social insurance and registration issues caused by procedural defects in the request, and ultimately obtains support in arbitration, first-instance and second-instance trials. This overall planning approach helps to avoid missing claimable rights. It should be noted that there are significant differences in local regulations regarding the determination of the social insurance base amount, and it is necessary to fully verify the local rules before handling the case.

IV. Practical suggestions and legal basis

Action recommendations: First, collect pay slips, bank transaction records, and personal income tax declaration records to calculate the total salary; Second, check the social insurance payment base and compare it with the local upper and lower limits year by year; Third, submit an application for making up the payment difference to the social insurance agency; Fourth, claim the resulting benefit difference in the labor dispute process; Fifth, verify the impact of the calculation base on work-related injury and maternity benefits; Sixth, keep the confirmation documents signed by the employer and raise objections. Legal basis: Article 60, Article 63, and Article 86 of the Social Insurance Law of the People's Republic of China (adopted on October 28, 2010, and implemented on July 1, 2011); Regulations on Work-related Injury Insurance (amended by Decree No. 586 of the State Council, promulgated on December 20, 2010, and implemented on January 1, 2011); The specific payment base upper and lower limits shall be subject to the current local regulations.

5. Henglu Law Firm's Advice

First, the base amount of social insurance is usually determined based on the total salary, not just the basic salary. Second, check the local upper and lower limits standards annually to avoid inaccurate claims. Third, making up for the difference in payment and claiming compensation for the difference in treatment are two different procedures and should be claimed separately. Fourth, the personal income tax declaration records are often important external evidence to prove the actual salary. Fifth, the confirmation documents issued by the employer do not necessarily exclude legal rights, and objections can be raised. Sixth, pay attention to the sensitivity of the base amount to work-related injury and maternity benefits, and it is more advantageous to claim early. Seventh, when claiming across years, attention should be paid to the statute of limitations and changes in local standards. Eighth, timely entrust professional lawyers to evaluate the feasibility and cost. For details on the procedures of labor disputes and the statute of limitations for arbitration, please refer to the relevant materials.Special services and other casesColumn.

VI. Frequently Asked Questions

Q1: Is it illegal for the unit to pay social insurance according to the minimum base amount?

They usually fail to meet the statutory requirements. Employers should declare and pay social insurance premiums based on the employee's actual salary. Only when the employee's salary is genuinely lower than the local minimum wage standard or when local regulations stipulate otherwise, can the minimum base amount be applied. If the actual salary is significantly higher than the minimum base amount but the employer still declares and pays based on the minimum base amount, this constitutes underpayment, and the employee may legally demand compensation for the difference in payment.

Q2: How can I tell how much my social insurance base amount has been underreported?

You can check your personal social insurance payment records, view the payment base for each year, and then compare it with your pay slips, bank statements, and personal income tax declaration records for the same period. Focus on two key points: whether the base is lower than your actual total salary, and whether it is lower than the lower limit of the payment base announced in your local area for that year. If you find any discrepancies, you can apply to the social insurance agency for verification and retroactive payment.

Q3: If the unit refuses to adjust the social insurance base amount, what else can I do?

You can report the situation to the local social insurance agency and submit relevant evidence to request a correction in accordance with the law; you can also file a complaint with the labor and social security supervision agency and request them to urge the employer to make corrections. If you have suffered any loss of benefits due to the employer's failure to pay in full, you can also apply to the labor and personnel dispute arbitration committee to claim compensation for this part of the loss. It is recommended that you keep the pay slips, bank transaction records, and personal income tax declaration records in their entirety during this process, as they serve as proof of your actual wages.

Q4: Which benefits will be affected by a low base salary?

The impact is quite extensive. The base amount of pension insurance contributions affects the basis for calculating pensions, medical insurance affects the level of account transfers and reimbursement benefits, work injury insurance affects the calculation of work injury benefits and one-time disability subsidies, and maternity insurance affects the amount of maternity allowances. In addition, it may also affect the standard of unemployment insurance benefits and the loan amount of housing provident funds. It is recommended to claim as soon as possible.

Q5: The company asked me to sign a document confirming a low base salary. Can I sign it?

It is not recommended. Signing such confirmation documents may be used by the other party as a basis for waiving their rights. Even if the document has been signed, it is still the employer's legal obligation to pay social insurance premiums in full for employees, and this obligation cannot be waived by agreement. It is recommended to keep the original documents, express written objections clearly, collect evidence of wages, and, if necessary, assert rights through social insurance audits or labor dispute procedures.

The above answer is based on the judicial practice in Beijing. The judicial interpretations in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, in order to avoid missing the statutory time limit. →Labor arbitration legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.