On September 14, 2017, the Ministry of human resources and social security and the Ministry of Finance jointly issued the notice on further improving the provincial overall planning system of basic endowment insurance for enterprise employees, which for the first time clarified that the essence of provincial overall planning is unified collection and expenditure of basic endowment insurance funds in the whole province. In the document, it is proposed for the first time that transitional measures should be formulated to realize the unification of the provincial rates by 2020 at the latest; when determining the parameters such as the upper and lower limits of individual payment base, transitional measures should be formulated to achieve unification as soon as possible if the average wage of employees in the whole province has not been used; the responsibilities of provincial, prefecture (city) and county governments at all levels should be clarified, and the management of fund revenue and expenditure should be further strengthened We will improve the fund gap sharing mechanism within the province.
According to this standard, only Beijing, Shanghai, Tianjin, Shaanxi and other places have realized the real provincial overall planning. Taking Shaanxi as an example, as one of the provinces that established the provincial overall planning of the basic endowment insurance fund for enterprise employees, Shaanxi has realized the unified collection and expenditure of the fund and the unified allocation and use of the fund at the provincial level since 2001, and implemented the six unification of unified policy, unified rate, unified project, unified payment method, unified use of fund and unified vertical management of pension insurance agencies 1. The specific practices are summarized as five sub models, namely, government decision-making, social security bill issuing, tax collection, bank invoice, and financial support. Since 2001, Shaanxi Province has cancelled the income accounts of pension insurance agencies at all levels. All the previous fund balances at all levels have been included in the special account of provincial finance. The revenue collected by the tax department is directly transferred to the special account of provincial finance. The annual revenue and expenditure gap is shared by the municipal government according to the proportion of 40%. This is exactly what we call the standard mode of provincial overall planning.
Provincial overall planning process of basic endowment insurance for enterprise employees
On April 21, 2020, the Ministry of human resources and Social Security announced the regular press conference in the first quarter of 2020. As of then, 20 provinces had realized the provincial coordination of basic endowment insurance fund for employees (unified income and expenditure of the whole province).
In June 2020, the Ministry of human resources and social security, the Ministry of Finance and the State Administration of Taxation issued the notice on extending the implementation period of the policy of phased reduction and exemption of enterprise social insurance premiums, which clearly pointed out that all provinces should accelerate the provincial overall planning of the three social insurances (enterprise basic endowment insurance, unemployment insurance and work-related injury insurance) to ensure the realization of enterprise employee base by the end of 2020 The endowment insurance fund is collected and disbursed at the provincial level.
As of October 23, 2020, according to the regular press conference of the Ministry of human resources and social security in the third quarter, 26 provinces and Xinjiang production and Construction Corps have announced or will realize provincial overall planning of basic endowment insurance for enterprise employees. As of October 2020, according to the order and preparation for the implementation of provincial overall planning, we can roughly divide the provinces in China into four batches
The first batch: by the end of 2016, there are 8 provinces that have realized the unified income and expenditure of the basic endowment insurance fund for enterprise employees in the province (i.e., the provincial overall planning in the true sense), including Shaanxi, Beijing, Shanghai, Tianjin, Chongqing, Tibet, Qinghai and Fujian.
The second batch: from 2017 to 2019, there are 4 provinces that have announced to realize the provincial coordination of basic endowment insurance for enterprise employees, including Guangdong (implemented on July 1, 2017), Guizhou (implemented on January 1, 2019), Hunan (implemented on July 1, 2019), and Ningxia (implemented on October 1, 2019).
The third batch: from January to September 2020, a total of 14 provinces and Xinjiang Construction Corps announced that they had realized or issued provincial overall plans within 2020. Among them, seven provinces have decided to implement the provincial overall planning of basic endowment insurance for enterprise employees from January 1, 2020, which are Shanxi, Shandong, Guangxi, Jiangxi, Anhui, Heilongjiang and Hebei. The other seven provinces and Xinjiang production and Construction Corps have decided to implement the provincial overall plan within 2020, including Jilin, Liaoning, Gansu, Yunnan, Henan, Hainan, Jiangsu and other provinces.
The fourth batch: in the fourth quarter of 2020, Hubei and Sichuan provinces will be added. On November 20, Hubei Province announced the provincial overall plan, which is to be implemented from January 1, 2021; on November 23, Sichuan Province announced the provincial overall planning plan, and decided to implement it from December 1, 2020.
By the end of November 2020, only Zhejiang, Xinjiang and Inner Mongolia have yet to announce the provincial overall planning plan. Among them, the Department of human resources and social security of Zhejiang Province said on July 3, 2020 that it had officially decided to accelerate the provincial coordination of endowment insurance for enterprise employees as one of the key tasks in the second half of the year, and decided to formulate and print and issue the opinions on the implementation of the provincial overall planning system of basic endowment insurance for enterprise employees in the name of the provincial government by the end of December 2020; Zhejiang Province is expected to officially announce its enterprises before the end of this year The provincial overall plan of basic endowment insurance for employees.
Among the provinces that have announced the specific implementation plan of provincial overall planning, the situation of Guangdong Province is relatively special. Guangdong is the first province since 2017 to announce the realization of provincial overall planning of basic endowment insurance for enterprise employees. However, it is not unified revenue and expenditure of the whole province, but it is actually the unified revenue and expenditure of prefecture level cities. However, the provincial overall plan was formulated and implemented before the issuance of the document of the Ministry of human resources and social security in 2019. Therefore, the current situation is understandable.
On July 10, 2017, Guangdong Province formulated and issued the provincial overall implementation plan for improving the basic endowment insurance for enterprise employees in Guangdong Province, which clearly decided that, from July 1, 2017, the provincial level unified collection and expenditure of the basic endowment insurance fund for enterprise employees in the province will be implemented, and the provincial level overall management will be adopted, and the unified accounting, hierarchical storage and equal ratio allocation will be implemented. Its essence is to shift from provincial allocation to provincial allocation. It has three representative problems
First, the proportion of enterprise payment in the whole province has yet to be unified. According to the provincial overall planning plan of Guangdong Province, the payment proportion of basic endowment insurance for enterprise employees in all cities and cities above the provincial level shall be unified to 14%, among which the unit payment proportion shall be adjusted to 14% if it is higher than 14%; if it is lower than the unified proportion of the whole province, in principle, it will take three years to gradually transition to the unified proportion of the whole province.
Second, the base of payment has yet to be unified. According to the overall planning plan of Guangdong Province, the upper limit of the basic endowment insurance payment base for enterprise employees is unified as 300% of the average monthly wage of the employees in the urban non private units of the province in the previous year, and the lower limit is reasonably determined by 60% of the average monthly wage of the full caliber (private and non private) on-the-job employees in the previous year. According to the differences in regional development of Guangdong Province, it is necessary to implement classified guidance and gradually transfer to the provincial level A standard. Therefore, the lower limit of payment will not be unified in the short term.
Third, the fund of the whole province has yet to realize the unified revenue and expenditure of the whole province. In terms of fund collection, the endowment insurance premium collected by all localities shall be transferred into the special financial account of social security fund of the city where it is located, and the provincial allocated fund shall be directly transferred into the special financial account of provincial social security fund in the collection process. In the past, the fund balance was deposited in various cities to make up for the fund income and expenditure gap of each city. The Provincial Department of finance will allocate the fund in the areas with surplus after implementing the provincial unified revenue and expenditure on July 1, 2017 in accordance with the same proportion, and transfer it to the special financial account of social security fund of each city. The essence is still the combination of city level overall planning and provincial level adjustment.
Analysis on the progress of provincial overall planning and its problems
From the current 26 provinces and Xinjiang production and construction border groups, most provinces have achieved the complete unification of the coverage of enterprise employees basic endowment insurance, the proportion of payment, and the upper and lower limits of the payment base. At the same time, it is very gratifying to realize the real meaning of unified collection and expenditure of the whole province.
If the municipalities directly under the central government are excluded, Guangdong, Jiangsu, Zhejiang and Fujian are the provinces with more balance of basic endowment insurance fund for enterprise employees. However, except that Guangdong has not really realized the provincial overall planning, Zhejiangs provincial overall planning plan has not yet been issued. Although Jiangsus provincial overall planning plan was released on June 2, 2020, it proposes that from January 1, 2021, the basic endowment insurance premiums collected by tax departments at all levels in the current period will be directly paid to the national treasury of the same level as the provincial income, and will be accumulated and settled by the unified management and dispatching of the province In addition, it also stipulates that Suzhou Industrial Park will gradually transfer to the implementation of the unified unit payment ratio of the whole province before January 1, 2022, and unify the upper and lower limits of the provincial wage base. Obviously, Jiangsu Province may not be able to realize the unified income and expenditure of enterprise employees basic endowment insurance fund before the end of 2020.
In fact, in the coastal developed areas, including Guangdong, Jiangsu, Zhejiang and Fujian provinces, they all have two common problems: one is that the distribution of fund balance is very different among the provinces, and it is difficult to balance the gap of unified revenue and expenditure of the whole province. For example, although the fund balance of Guangdong Province is as high as one trillion yuan, Shenzhen Special Economic Zone accounts for more than 500 billion yuan; similarly, nearly half of the nearly 500 billion fund balance in Jiangsu province comes from southern Jiangsu Province. Therefore, in the process of provincial overall planning, there must be a so-called balance problem of gap sharing mechanism among cities and counties. Second, it is easy to reduce the proportion of unit payment, but difficult to increase it. In Guangdong and Zhejiang, the unified rate of unit payment is 14%, which is far lower than the national unified standard of 16%. Moreover, there are areas in the province where the unit payment rate is less than 14%, and the payment rate of Xiamen enterprise employees basic endowment insurance unit is as low as 12%. Obviously, it is very difficult to raise the payment standard substantially now. In the past, these coastal developed areas independently reduced the proportion of social security contributions, which was far lower than the national standard at that time and at present. Although it had a tax reduction substitution effect on local enterprises, it objectively reduced the accumulation of social pooling fund of basic endowment insurance for enterprise employees to a certain extent. Therefore, we must take advantage of the opportunity of provincial overall planning to completely change this situation and unify the unit payment proportion of enterprises in the whole country.
However, in general, we believe that by the end of 2020, all provinces in China will be able to complete the target of comprehensive provincial overall planning on time, which will lay a solid institutional and material foundation for us to realize the national overall planning of basic endowment insurance for employees in the next step.
The intellectual property rights of the contents published by the 21st century economic report and its clients belong to Guangdong 21st century global economic news. No one shall use it in any way without written authorization. Please click here for details or authorization information.