business

Social insurance contribution cuts for companies in China proved effective: official

BEIJING, Oct. 28 (Xinhua) — Enterprises, especially those micro, small and medium-sized ones, have seen a cut in their social insurance contributions amid the country’s efforts to help them tide over the COVID-19 epidemic, a Chinese official said Wednesday.

By the end of September, about 11.3 million enterprises saw a decline of 910.7 billion yuan (about 135.53 billion U.S. dollars) in insurance premiums related to old-age, unemployment and work-related injuries, said Nie Mingjun, an official with the Ministry of Human Resources and Social Security.

Meanwhile, 61.6 billion yuan of social insurance payments were allowed to be deferred, he said.

The social insurance premium rate has also been lowered, leading to companies saving 232.2 billion yuan.

Nie said reduced contributions to social security premiums are expected to amount to 1.6 trillion yuan this year.

“The cut is unprecedented in scale,” Nie said. “It will be instrumental in helping enterprises rise above difficulties, and stabilize and expand employment.”

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