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Over 10 regions unveil cuts in social security programs

(chinadaily.com.cn) Updated: 2016-05-25 13:49

Over 10 regions unveil cuts in social security programs

An elder shows her social security card in Nantong city, Jiangsu province, March 30, 2016. [Photo/IC]

More than 10 provincial-level regions have unveiled their social security cut programs, and local governments said lowering the percentage will not affect employee's welfare and benefits, chinanews.com reported on its website.

The report?came six weeks after?the State Council?announced a plan to further reduce the burden on individuals and enterprises by cutting their payment to the social security funds.

According to a government routine meeting held on April 13, the required contribution rates of the pension insurance, unemployment insurance and housing provident funds will be lowered in a two-year period starting May 1.

Under the policy, enterprises that contribute more than 20 percent of the pension insurance payment can reduce the rate to 20 percent, while those in provinces that see sufficient funds can lower the rate to 19 percent. In addition, the rate of the unemployment insurance will range between 1 percent and 1.5 percent, down from the previous 2 percent.

The website said more than 10 provincial-level regions have unveiled their social security cut programs, including Shanghai, Chongqing, Sichuan, Xinjiang, Shanxi, Jiangxi, Shaanxi, Tianjin, Hubei, Henan, Shandong and Guangxi.

In terms of pension insurance, Shanghai lowered the rate that enterprises must pay for pension insurance to 20 percent from 21 percent, while Chongqing, Sichuan, Xinjiang, Shanxi, Tianjin, Hubei, Henan, and Guangxi reduced the rate to 19 percent from 20 percent.

In terms of unemployment insurance, Hubei, Shaanxi, Guangxi, Chongqing, Shanxi and Jiangxi cut the amount of money that firms must pay for unemployment insurance to 1 percent, while Henan reduced the rate to 1.5 percent from 2 percent.

Meanwhile, the amount that employees must pay for unemployment insurance was reduced to 0.3 percent of an employee's salary in Hubei and Henan, and 0.5 percent in Guangxi, Tianjin and Chongqing.

Besides pension and unemployment insurance, some local governments, such as Chongqing and Shanghai cut the percentage that enterprises must pay for medical insurance.

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