On the 24th, the Minister of Finance, Liu Kun, said at the 2019 annual meeting of the China Development High-Level Forum that China will reduce the proportion of urban employees’ basic pension insurance units from May 1st, and the number of local governments can be reduced from 20% to 16%. The proportion of social security contributions. Experts predict that the reduction of social security rates can reduce the cost of enterprises by 800 billion yuan.

Regarding the fee reduction, Liu Kun said that in addition to lowering the proportion of urban employees' basic endowment insurance units, they will continue to implement the phased reduction of unemployment and work injury insurance rate policies, and increase the stability of social security and social security subsidies for labor-intensive enterprises. Effectively reduce the proportion of corporate social security contributions.

"The social security rate has been adjusted from 20% to 16%, and a one-time reduction of 4%. It is expected to reduce the social security contribution burden of enterprises by 800 billion yuan." Zhang Yiqun, deputy director of the China Budget Performance Committee, told the Securities Daily reporter. This reduction of the proportion of corporate social security contributions will greatly reduce the burden of corporate social security contributions, significantly ease the cost of employment for enterprises, and help enterprises to further expand employment, which is of great significance to the current steady employment proposed by the state. This is also the new proposal put forward by the Prime Minister at this year's two sessions. An important measure to increase the employment of more than 11 million people.

Huang Zhilong, director of the Macroeconomic Research Center of Suning Financial Research Institute, told the "Securities Daily" reporter that after reducing the burden of social security contributions, on the one hand, it is conducive to the unified social security payment level across the country, achieving fair competition for social security contributions and other costs among enterprises; The aspect will undoubtedly greatly reduce the burden on enterprises, and the role of boosting the real economy and corporate investment will be very significant.

Zhang Yiqun believes that lowering the proportion of social security contributions is also conducive to the collection of social security fees. To a certain extent, it can effectively eliminate the problem of high contribution rate in the past, but it is difficult to collect and reduce the amount of compensation. It is equal to the dividend of the policy in exchange for the business dividend of the enterprise. Use the space of policy for the space for business development. In addition, the one-time drastic reduction in the proportion of social security contributions can also reduce the imbalance of inter-provincial social security contributions, promote fair competition among enterprises in the provinces, and fair treatment of employees, in order to promote the rational distribution of human resources in the provinces. Balanced mobility plays a role, and it will certainly play a powerful role in promoting cross-regional investment, employment and business expansion.

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