Company Social Insurance Burden Reduced in Many Cities of China
In order to reduce the operation cost of companies, many local governments issued new regulations to reduce social insurance payment ratio since beginning of 2016.
Shanghai government announced that the payment ratios of pension insurance and health insurance borne by the company are reduced by 1%, the payment ratios of unemployment insurance borne by the company is reduced by 0.5% since 1 January 2016. Guozhou government announced that the payment ratios of unemployment insurance borne by the company is reduced by 0.7% since 1 March 2016. During the second half year of 2016, the health insurance borne by the company will be gradually reduced by 5.5%. Besides the companies from Tianjin, Yunnan, Gansu and Fujian governments may also enjoy the lower social insurance burden in different degrees.
On 14 April 2016, Ministry of Human Resources and Social Security and Ministry of Finance jointly issue a circular <Ren She Bu Fa  No.36> to reduce the Social Insurance Payment Rates. As of May 1, 2016, all provinces and cities shall reduce the local social insurance payment ratio.
|Basic pension insurance||
|work-related injury insurance & maternity insurance payment||