To ensure the sustained, stable, and healthy development of our province’s economy, the provincial government has decided that, while ensuring timely and full payment of pensions for enterprise retirees and safeguarding employees’ social security benefits, the contribution rates for enterprise social insurance premiums will be temporarily and appropriately reduced over the next two years. The annual reduction will amount to one month’s contribution by enterprises.

With the approval of the provincial government, today the Provincial Department of Labor and Social Security, the Provincial Department of Finance, and the Provincial Local Tax Bureau jointly issued a notice specifying the temporary appropriate reduction range and standards for enterprise social insurance contribution rates, as well as related policy coordination measures.

The temporary, moderate reduction in the contribution rates for enterprise social insurance covers the pooled portions of contributions for the five major insurance schemes: basic pension insurance, basic medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance.
A relevant official from the Provincial Department of Labor and Social Security stated that during the period of concentrated reduction in contributions, insured individuals will not be affected in terms of any social insurance benefits they are entitled to under the policy.

Among these, the pooled portion of enterprise social insurance contributions will be reduced collectively in December this year. The individual contribution portion of social insurance for insured individuals will not be reduced and will continue to be paid as usual according to regulations.

If some participating enterprises and urban self-employed workers have already paid their December social insurance premiums in advance by the end of November, they can deduct these prepaid December premiums from their 2009 social insurance contributions. Those who had originally planned to pay their full-year social insurance premiums for the current year in December may, in accordance with regulations, have one month’s social insurance premium reduced.