This is the fifth time since 2015 that the State Council has announced the policy of reducing social security premiums for fifth consecutive years. In April this year, Youjun, Vice Minister of the Ministry of Human Resources and Social Affairs, revealed that the first four rate reduction policies have accumulated to reduce costs for enterprises by 315 billion yuan.
In August this year, the State Administration of Taxation, the Ministry of Finance and the Ministry of Human and Social Affairs jointly convened a meeting to clarify that all social insurance premiums will be levied uniformly by the tax authorities from January 1, 2019. Among them, the work of clearing and paying has attracted much public attention.
Concern about private enterprises, the State Council has repeatedly made a clear statement that we should study and properly reduce the social security premium rate to ensure that the overall burden of enterprises does not increase. The policy of lowering the rate is also more urgent because of the reform of the social security levy system.
To what extent can the new deal reduce corporate burdens? Does the rate of reduction affect the treatment of insured persons? What is the current situation of social insurance in China? A series of problems affect social nerves.
The executive session of the State Council, held in November 2nd, focused on identifying targeted measures to further promote employment. The Ministry of human resources and social work has revealed that in the first three quarters of the year, new urban employment has been completed.
Employment requires employers to have sufficient job demand, which largely comes from the production and operation of enterprises. The situation of enterprises has naturally become the topic of concern at the executive session of the State Council on employment. Indeed. The conference has issued a series of substantive policies for enterprises.
In order to alleviate the burden on enterprises and promote employment expansion, the meeting decided that the current policy of reducing the total proportion of unemployment insurance contributions of employers and employees from 3% to 1% in a phased manner will continue to be implemented after the expiration of the end of April next year. It is not just a continuation of the tariff reduction policy. The meeting also decided that 50% of the unemployment insurance premium paid by the enterprises and their employees could be returned by reducing the premiums to those enterprises that meet the requirements and strive to stabilize employment. For eligible unemployed persons, their personal expenses such as basic medical insurance should be paid out of the unemployment insurance fund.
Reporters found that since February 2015, the Ministry of Social Affairs and the Ministry of Finance have adjusted the unemployment insurance premium rate from 3% to 2%, and reduced the industrial injury insurance and maternity insurance premium rates to 0.75% and no more than 0.5%, respectively.
Since 2015, the policy of adjusting the social insurance premium rate has involved the four insurance in the five insurance of unemployment insurance, industrial injury insurance, maternity insurance, old-age insurance, etc. The merger of maternity insurance and basic medical insurance has also been deployed. This also means that the state has made overall arrangements for all 5 categories of social security.
Strict collection and matching needs to substantially reduce rates
The call for lower rates comes from a substantial step in the reform of the social security system in August this year.
On August 20, the State Administration of Taxation, the Ministry of Finance and the Ministry of Human and Social Affairs jointly convened a meeting to clarify that all social insurance premiums will be levied uniformly by the tax authorities from January 1, 2019. It is clear that we should carefully arrange the work of clearing and paying taxes.
In fact, before that, many social security levy units in Guangdong, Liaoning, Jiangsu, Hubei and other places have carried out the work of clearing arrears for enterprises. An enterprise in Hubei has been asked to pay 17 yuan of social security for 123167.52 yuan, plus a late fee of 27668.73 yuan.
Zhu Junsheng, deputy director of the Insurance Research Department of the Financial Research Institute of the Development Research Center of the State Council, told the Beijing News that the increased burden of enterprises is not only the burden of enterprises but also the burden of workers. If the enterprise is overburdened, this will reduce the demand for labor and have a bad effect on the market.
Zhu Junsheng believes that if the tax authorities want to change this situation and strictly collect and pay, they need to substantially reduce the social security premium rate.
On September 6, this year, the Standing Meeting of the State Council made a voice: before the reform of the social security collection institutions is in place, all localities should keep the existing collection policies unchanged, and at the same time, we should make efforts to reduce the social security premium rate appropriately, so as to ensure that the overall burden of enterprises is not increased, so as to stimulate market vitality and guide the society to better anticipation.
Social security rates fell by nearly 10% overall.
This new policy does not involve the substance of the rate adjustment, but it is clear that the policy of reducing unemployment insurance premium by stages will continue to be implemented until the implementation deadline, and the deadline for continuing implementation has not been announced.
In view of the problem of enterprise burden, General Secretary Xi Jinping has made it clear that we should release water to raise fish and make every effort to reduce the enterprise burden. In November 1st, Xi Jinping held a forum on private enterprises in the Great Hall of the people. At this meeting, he pointed out six directions for supporting the development and growth of private enterprises in the next step. The first one is to lighten the burden of tax and fee on enterprises.
How much burden has been reduced to enterprises? A person in charge of a private enterprise with nearly 100 employees in Beijing told reporters that taking all the five social security premiums paid for employees into account, the total social security premiums paid by enterprises and individuals each month are about 300,000 yuan. Every one percentage point reduction, we can save 8,000 yuan in labor costs.
In April this year, Youjun, Vice Minister of the Ministry of Human Resources and Social Affairs, said that since 2015, the social insurance premium rate has been reduced four times, or in stages. The overall social insurance premium rate has dropped from 41% to 37.25%, and the overall decline is close to 10%. Yu Jun said, we have calculated that the total cost of the enterprise will be reduced by about 315 billion yuan.
The reduction of social security rates has a definite effect on reducing the burden of enterprises. However, according to the implementation of the first four rate reduction policies, the lowest rate of pension insurance is still 19%, which is the highest one among the five insurance rates. Some experts said that if we want to continue to lighten the burden of enterprises, we should substantially reduce the premium rate.
The rate of social insurance will not affect the treatment of social security.
The bill of social security fund involves income and expenditure. The rate of reduction is income reduction for the pool of social security fund. Is there any power to pay social security insurers after the reduction? Will the reduction of income be reduced?
In April this year, Youjun said at the regular policy briefing of the State Council that it is conditional to reduce the premium rate of enterprise endowment insurance by stages. The accumulated balance of the fund can be paid for more than nine months, and the supporting capacity of the fund is guaranteed. After calculation, the premium rate of pension fund has been reduced by 1 percentage point. Most areas can still receive more than their expenditures in the current period, and a few can use the accumulated balance to adjust.
Regarding whether the rate reduction will affect the treatment, officials of the Ministry of Human Resources and Social Security said that the rate reduction will never affect the treatment of social security. Rate cuts can not bepulled down the gourdand the social security benefits will gradually increase in the future with the economic development and changes in the average wages and living costs of workers. Jin Weigang, President of the Chinese Academy of labor and social security, said.
According to the latest figures from the Ministry of Personnel and Social Affairs, the total income of basic pension, industrial injury and unemployment insurance funds increased by 18.2% from January to September, and the total expenditure of funds increased by 16.5% from January to September. From this figure, the total income of social security this year is larger than that of total expenditure.
On the one hand, the rate of reduction is on the other hand, and on the other hand, total revenue is increasing, and the growth rate is still accelerating. Why? In fact, a series of policies to enrich social security gradually appear. By the end of September, the governments of 15 provinces (districts and municipalities) such as Beijing and Shanxi had signed entrusted investment contracts with the Council of Social Security Fund. The total amount of the contracts was 715 billion yuan, of which 416.65 billion yuan had been paid and started to invest, said Lu Aihong, a spokesman for the Ministry of Human Resources and Social Security.