Abstract: The employee‘s basic endowment insurance system is tied up with the index: employees“ average wage. This index not only impacts the payment of the insurance fund, but also affects the payment ability of the employees in active service. However,at the present day the index employees‘ average wage publicized by stat department cannot reflect the real wage that the employees get. This paper analyses the reason why this index cannot reflect the reality, and what it will bring to the employee‘s basic endowment insurance system. On the basis of those analyses, we present several suggestions.