China has lowered the payment by enterprises for employees’ insurance, taking effect from Wednesday onward.
The share borne by employers for urban workers’ basic aged-care insurance was lowered to 16% across the country, according to a plan released by the State Council. The percentage was different among Chinese provinces before, as some had rates of 20% or 19%.
In addition, a reduced rate of enterprise contribution to employee’s unemployment insurance and employee’s work injury compensation insurance were maintained and extended to April 30, 2020, it said.
You Jun, the deputy minister of Human Resources and Social Security Ministry, said the new rule allows company owners to save about 190 billion yuan (US$28.2 billion) in pension costs and about 110 billion yuan in costs of unemployment insurance and employee’s work injury compensation insurance, Xinhua News Agency reported.