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Comprehensive Plans for Reducing Social Security Rates

2019-05-27 14:36:28
Recently, the General Office of the State Council issued the Comprehensive Plans For Reducing Social Security Rates, specifying a series of new policies on pension, unemployment insurance, employment injury insurance, and social security wage base.

Recently, the General Office of the State Council issued the Comprehensive Plans For Reducing Social Security Rates, specifying a series of new policies on pension, unemployment insurance, employment injury insurance, and social security wage base. For example, starting May 1, China will cut the share of enterprise contributions to urban workers’ basic pension; in the provinces where the enterprises currently contribute more than 16%, it will be reduced to 16%. The social security wage base’s upper and lower limits should be verified based on the provincial average, which is a weighted average of the average wage of urban workers in both non-private enterprises and private enterprises in the province; and the social security wage base for some individuals and enterprises will be reasonably lowered. Self-employed persons and persons in flexible employment can join the basic pension system for enterprise employees and choose their social security wage base within a range of 60 percent to three times the provincial average. The Comprehensive Plans will further reduce the burden on enterprises, stimulate market vitality, promote stable employment, and promote high-quality economic development on the basis of protecting the legitimate rights and interests of workers.

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