Shanghai reduces worker insurance premiums

Shanghai has decided to waive or reduce premiums paid by some employers for pension funds, unemployment insurance and work-related injury insurance between February and June to further reduce the burden on businesses during the coronavirus epidemic.

“It is expected to reduce the social security fees paid by enterprises by 53 billion yuan (US$7.6 billion),” Fei Yuqing, deputy director of Shanghai Human Resources and Social Security Bureau, told a press conference on Tuesday.

Medium, small and micro-sized enterprises and self-employed people will be exempt from fees from February to June. Some other enterprises, including large-scale businesses, private non-enterprise units and social organizations, will only pay half of the fees between February and April. 

The city will also extend the current low rate of premiums for unemployment and work-related injury insurances against employees’ salaries till the end of April next year, Fei said.

Previously, the bureau announced 28 measures to reduce the burden on local enterprises and stabilize employment during the coronavirus outbreak.

These included deferral of the annual adjustment in standards of social security insurance contributions by three months to July 1.

Companies that do not lay off employees can get a refund of 50 percent of the actual unemployment insurance premiums they paid last year.

Those unable to join social security programs or pay fees in time due to the epidemic are allowed to go through the process after the epidemic is over. No overdue pay will be charged and employees’ records will not be affected.

So far, the city’s social security center has accepted reports for possible delayed payment from 73,000 enterprises, Fei said.

He said the exemption and reduction of social security fees, refunds of unemployment insurance premiums and deferrals of annual adjustment in standards of social security insurance together would reduce the burden on enterprises by 62.4 billion yuan.

The social security center has been improving its services, such as promoting non-contact services via its one-stop website, app and WeChat account and allowing applicants to submit required materials later if they fail to have everything during the first visit.