Automatic Increases
Contribution & Benefit Base
Wageindexed Amounts

Method for determining the base
The formula for determining the OASDI contribution
and benefit base is set by law. The formula states that the base for any
year Y after 1994 is equal to the 1994 base of $60,600 multiplied by
the ratio of the national average wage index for
year (Y2) to that for 1992, with the result rounded to the nearest
multiple of $300. If the result is less than the current base, the base is
not reduced.
Base for 2008
Under the above formula, the base for 2008 shall be the 1994 base of $60,600
multiplied by the ratio of the national average wage index for 2006 to
that for 1992, or, if larger, the 2007 base of $97,500.
If the amount so determined is not a multiple of $300, it is rounded to the
nearest multiple of $300.
Calculation details
Amounts in formula 
1994 base  $60,600 
1992 average wage index  $22,935.42 
2006 average wage index  $38,651.41 
Computation  $60,600 times $38,651.41 divided by
$22,935.42 equals $102,124.81, which rounds to
$102,000. 
Higher amount  $102,000 exceeds
$97,500, so the base for 2008 is
$102,000 
