Beijing companies can cut social security, freeze minimum wages

December 18, 2008 | BY

clpstaff &clp articles

More local governments to take similar protective measures

Companies in Beijing will be allowed to cut their contributions to employee social insurance funds in 2009, and the minimum salary will not be increased.

According to an official government news portal, the Ministry of Human Resources and Social Security has told Beijing that companies there should suspend minimum wage adjustments from early in 2009. The Beijing Bureau of Labor and Social Security has also announced that employer and employee contribution rates for funds including medical insurance, unemployment insurance and work-related injury insurance will be reduced.

The provinces of Zhejiang, Anhui, Guangdong and Suzhou have announced comparable measures, and further moves are expected.

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]