In 2024, the average pension for retirees increased by 3%. With the release of the social average wages for the year 2023 in various regions, it has become apparent that this year's increase is indeed significant. The comprehensive social average wage in Beijing is 11,761 yuan, with a growth rate of 4.1%. In Shanghai, the comprehensive social average wage is 12,307 yuan, with a growth rate of 1.1%. In Shandong Province, the comprehensive social average wage is 7,359 yuan, with a growth rate of 4.1%.

As the growth rate of the social average wage gradually slows down, some friends are concerned whether the pensions for enterprise retirees will continue to increase in 2025.

To be honest, there is a provision in the Social Insurance Law that states: The state establishes a normal adjustment mechanism for the basic pension. Based on the growth of the social average wage and the rise in prices, the level of basic pension insurance benefits is increased in a timely manner. Generally speaking, the increase in pensions is mainly related to three factors: the growth of the social average wage, the rise in prices, and the bearing capacity of the pension insurance fund.

Advertisement

1. Social average wage: In the past, this referred to the average wage of urban non-private unit employees or on-post workers, but since 2019, it has gradually transitioned to the comprehensive average wage of urban unit employees. According to the statistical scope of the National Bureau of Statistics, the total wage actually includes six major categories, including hourly wages, piece-rate wages, bonuses, allowances, subsidies, and overtime pay.

The scope of the wages counted mainly includes employees of legal entities and does not include unemployed persons, urban individual industrial and commercial households, and flexible employment personnel.

In the first half of 2024, China's GDP continued to grow. The per capita wage income of the national residents in the first half of the year was 11,950 yuan, with a growth of 5.8%. Therefore, it is estimated that the annual wage income of employees will also continue to grow.

2. Price increase: In 2023, the Consumer Price Index in China grew by 0.2% for the whole year. The overall level in the first half of the year was an increase of 0.1%, but the growth rate began to recover, with the second quarter growth rate reaching 0.3%. By the second half of 2024, there may be a new increase in the Consumer Price Index.Pension Fund. According to the figures from the 2022 Human Resources and Social Security Development Statistical Bulletin, the income of the employee pension fund was 6,332.4 billion yuan, with expenditures of 5,903.5 billion yuan, resulting in a surplus of 5,689 billion yuan. A central adjustment system for enterprise employee pension funds has been established nationwide, and the national coordination of pension insurance is continuously advancing.

Additionally, the Social Security Fund Council manages social security fund equity amounting to 2.5 trillion yuan, and 10% of state-owned enterprise equity can provide a more solid guarantee.

Recently, an important national document has clearly stated that a gradual delay in retirement will be promoted based on the principles of voluntariness and flexibility. This will release the demand for delayed retirement in society and effectively alleviate the pressure on the income and expenditure of the pension fund.

Furthermore, China's pension insurance system will be further improved. For example, increasing the contribution years required for receiving pensions, perfecting the monthly payment system for individual accounts, establishing a national disability allowance system, and improving employment protection for the elderly, all of which can enhance the sustainable development capacity of the pension fund.

Therefore, it is highly likely that the adjustment of pensions for retirees will continue in 2025.

When adjusting pensions, both enterprise and institutional pensions are adjusted uniformly, and the adjustment methods have basically achieved full unification across provinces. Through fixed amount adjustments, linkage adjustments, and appropriate inclinations, the growth level of pensions for enterprise retirees will still exceed the average growth level.

#Top Creator Challenge# #Pension Increase#