Corporate social insurance payments lowered

企业社会保险付费降低

May 13, 2016 | BY

Katherine Jo &clp articles

Enterprises' pension and unemployment premium requirements have been capped to ease cost burdens. Lawyers discuss whether this will have any real impact and emphasize the importance of complying with labor laws. 企业养老金和失业保险费率规定了上限以减轻成本负担。律师们讨论这是否将产生任何实际影响，并强调遵循劳动法的重要性。

China has reduced corporate social security contribution requirements in an effort to ease strain on finances as well as encourage compliance.

The move comes against the backdrop of cases of bending the rules and contributing less then statutorily required, a practice cited as a major trigger of labor disputes.

The Circular on Reducing Social Insurance Premium Rates in Stages (Circular), jointly issued by the Ministry of Human Resources and Social Security and the Ministry of Finance, took effect on May 1 and lowers enterprises' social insurance payment requirements for pension and unemployment, which have been capped at 20%, and reduced to 1% from 1.5%, respectively. Housing funds will remain under 12%.

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