Uncle Seven Makes a Comeback | Shanghai is Probably Crazy for Money

Shanghai’s social security base has been raised again, and the Shanghai Human Resources and Social Security Bureau announced the latest social security contribution base on the 28th.

The average salary of employed people in Shanghai in 2022 was 12,183 yuan/month, and the corresponding minimum social security contribution base was raised to 7,310 yuan/month.

I am really shocked that the average salary in Shanghai has reached 12,183 yuan/month. I really don’t know how this number came about.

There are even more shocking things.

In 2019, the average salary in Shanghai was 9,339 yuan. After three years of the pandemic, the average salary in Shanghai not only did not decrease, but instead soared at a rate of more than 10% per year.

It has increased by more than 30% in four years!

I really don’t know what industry is single-handedly pulling up the average salary of the entire Shanghai. Anyway, almost no one around me has increased by more than 30% in the past 4 years.

Either my level is too low to be exposed to this kind of high-end stuff.

There is also a more interesting phenomenon. Pay attention to the lower limit of the base in 2022, an increase of 5.12%.

Generally speaking, the lower limit of the social security contribution base is calculated based on 60% of the average social salary of the previous year, so its growth rate should be completely synchronized with the average social salary.

But the average salary increase in 2022 was 10.23%, while the lower limit of the base increased by only 5.12%, which is almost half less.

What’s going on?

Because Shanghai was most severely affected by the pandemic in 2022, it did not simply take 60% of the original increase, but instead took 60% of the average of the average salaries in 2020 and 2021.

Okay, now the pandemic is over, but has the economy improved?

No, on the contrary, Shanghai’s CPI fell the most in the country in May, down 1.4% year-on-year.

Under these conditions, Shanghai did not increase by 6.91% year-on-year on the basis of the previous year, but very roughly took 60% of the average salary in 2022.

This has led to a direct increase of 12.12% in the lower limit of the contribution base, and the lower limit of the base has also reached 7310.4 yuan.

For this adjustment, the biggest impact is on freelancers, and this life is simply unbearable.

Because the individual portion and the overall portion of freelancers are all borne by the individual, then their monthly social security contributions increased from 2314.6 to 2595.05 (of which the individual bears 24% of the pension insurance, and each month needs to pay 1754.5 yuan. The individual bears 11.5% of the medical insurance, and the minimum monthly payment is 840.7 yuan.).

It has increased by nearly 300 yuan.

300 yuan a month may not be a big deal for those with an “average monthly salary”, but for freelancers in Shanghai, it’s really hard to bear.

Heavenly conscience, freelancers in Shanghai are definitely the most miserable group of people in China. They don’t earn much money, but the burden of social security is extremely heavy.

According to the statistics of the “2022 China Flexible Employment Market Research Report”, the scale of flexible employment in Shanghai exceeds 3 million, which is the highest in the country.

Among them, nearly 20% of freelancers earned 24,000-60,000 yuan. Most freelancers’ initial income is not stable, and is generally lower than the average salary when working, and nearly half (47.5%) of freelancers have an average monthly salary below 8,000 yuan.

We can do the math. Without paying any personal income tax, the rent is 2000, and the social security is 2600. These two expenses alone account for the vast majority of the income, and less than 4000 yuan is left to live in Shanghai for a month.

How do you live?

Buying a house is even more a fantasy.

What’s even more annoying is that even if you pay more, you get less after retirement. I have to take out this picture again, it’s really annoying to watch.

Before the adjustment, Shanghai’s social security was 1565, and medical insurance was 750, totaling 2315, but after retirement, you can only get 2286.

Look at Shenzhen and Hangzhou, or look at Beijing and Lhasa. Isn’t this bullying honest people?

Some people may say that other provinces and cities are about the same according to the proportion, basically the social security paid and the retirement pension received is about 1:1.3~1:1.5, and Shanghai is not too bad.

This is a big mistake, because in a city like Shanghai, the cost of living is extremely high, so the higher the rigid expenditure, the greater the pressure of life.

I would rather pay less now and get less later, at least I can live comfortably now, after all, the money paid is real.

In the future, when we really retire, we really don’t know what kind of policy the pension will be, and national unification is not impossible.

Therefore, I often tell my friends that if you are a freelancer in Shanghai, try to pay social security in Hangzhou and Shenzhen. These two cities pay less and have a high return;

If you are not in Shanghai, congratulations, don’t come to Shanghai, this ghost place is not suitable for human habitation.

Uncle Qi, a Shanghai native, is considering how to transfer his social security. You still come to Shanghai to fill the pit. I’m afraid there is really a pit in your brain.

It’s really getting harder and harder to survive in Shanghai. In 2022, Shanghai’s population net outflow was 135,000, which is the first negative population growth since 1978.

Very good, from this year on, this phenomenon will become the new normal.

So if you can still find a company in Shanghai that is willing to pay your social security, you really have to understand how high the labor costs of the company are.

Whether it is an individual or a company, it is really not easy to survive in Shanghai.

Finally, let’s popularize a few small social security common sense:

1. To transfer social security to other cities, you don’t need to move your household registration. If you have an idea, you can pay attention to the official account of the social security bureau of the place of transfer, and the process will be written very clearly.
2. In terms of the current social security policy, as long as you pay social security for 10 years in a certain place, you can retire in this place. For example, I pay for 10 years in Shanghai, 10 years in Shenzhen, and 10 years in Hangzhou. When I finally retire, I can choose three places.
3. The number of years of social security payment is much more important than how much you pay each month, so try to pay the minimum and extend the payment time long enough.
4. If a company can pay for you, congratulations, you are exempt from the above troubles and save a lot of expenses.