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What is the impact of the fifth adjustment of social security rate and 10% reduction of social secur

For the fifth time in three years in a row, the State Council announced the policy of reducing social security rates. The overall decrease of social security rates is close to 10%. So what is the impact of reducing social security rates on employees? Let's have a look.

At the executive meeting of the State Council held on November 2, the latest policy of social security rate reduction was announced: the existing policy that was originally to be implemented until next year -- the total payment proportion of unemployment insurance for employers and employees dropped from 3% to 1% in a phased manner, which will continue to be implemented after the expiration of next April.

This is the fifth time in three consecutive years since 2015 that the State Council has announced the policy of social security rate reduction. In April this year, you Jun, Vice Minister of the Ministry of human resources and social security, revealed that the first four tariff reduction policies have reduced the cost of enterprises by 315 billion yuan.

In August this year, the State Administration of Taxation, the Ministry of finance, the Ministry of human resources and social security and other five departments jointly held a meeting, which made it clear that from January 1, 2019, the tax department will collect all social insurance premiums in a unified way. Among them, the work deployment of "clearing up the arrears" is also concerned by the society.

With regard to the concerns of private enterprises, the State Council has made clear many times that it is necessary to 'study and appropriately reduce social security rates to ensure that the burden on enterprises in general is not increased'. This time, the introduction of the policy of reducing the rate is more urgent because of the reform of the social security collection system.

To what extent can the new policy reduce the burden of enterprises? Does the rate reduction affect the treatment of the insured? How is the current operation of social insurance in China? A series of problems affect the social nerves.

[new deal]

Return 50% unemployment insurance premium to stable employment enterprises

At the executive meeting of the State Council held on November 2, the theme was to determine targeted measures to further promote employment. The Ministry of human resources and social security previously revealed that the first three quarters of urban new employment has completed the annual target task.

Employment requires employers to have enough job demands, which are largely from the production and operation of enterprises. The situation of enterprises has naturally become an issue of concern at the executive meeting of the State Council, which studies "employment". indeed. The meeting issued a series of substantive policies for enterprises.

In order to lighten the burden of enterprises and promote the expansion of employment, it was decided at the meeting that the current policy of reducing the total contribution rate of unemployment insurance of employers and employees from 3% to 1% in a phased manner will continue to be implemented when it expires at the end of April next year. It's not just a continuation of the rate reduction policy. The meeting also decided to return 50% of the unemployment insurance premium paid by the enterprise and its employees to eligible insured enterprises that strive to stabilize employment through fee reduction. For the eligible unemployed, the basic medical insurance and other expenses that should be paid by the individual shall be listed from the unemployment insurance fund.

The reporter found that since February 2015, the Ministry of human resources and social security and the Ministry of finance have adjusted the unemployment insurance rate from 3% to 2%, and reduced the industrial injury insurance and maternity insurance rates to 0.75% and no more than 0.5% respectively.

Since 2015, the social insurance rate adjustment policy has involved "four insurances" in "five insurances", including unemployment insurance, work injury insurance, maternity insurance and endowment insurance, and has also made arrangements for the combination of maternity insurance and basic medical insurance. This also means that the state has adjusted the overall layout of all five categories of social security.

[voice]

Strict collection and payment need to be matched to greatly reduce the rate

The call for the rate reduction comes from a substantial step taken in the reform of the social security collection system in August this year.

On August 20, the State Administration of Taxation, the Ministry of finance, the Ministry of human resources and social security and other five departments jointly held a meeting, which made it clear that from January 1, 2019, the tax department will collect all social insurance premiums in a unified way. It clearly puts forward to arrange the work of "clearing up the outstanding and paying up".

In fact, before that, many social security collection units in Guangdong, Liaoning, Jiangsu, Hubei and other places had carried out "debt clearing" work for enterprises. A Hubei enterprise was required to pay 123167.52 yuan of social security for 17 years plus 27668.73 yuan of late payment fine.

Zhu Junsheng, deputy director of the Insurance Research Office of the Financial Research Institute of the development research center of the State Council, told the Beijing News: 'the increased burden of enterprises is not only the burden of enterprises but also the burden of workers. If the burden of enterprises is too heavy, it will reduce the demand for labor and have a bad impact on the market. '

Zhu Junsheng believes that if the tax authorities want to change this situation and carry out strict collection and payment, they need to significantly reduce the social security rate.

On September 6 this year, the executive meeting of the State Council issued a voice: before the reform of social security collection institutions is in place, all localities should keep the existing collection policies unchanged, and at the same time, we should pay close attention to the study of appropriately reducing social security rates to ensure that the overall burden of enterprises is not increased, so as to stimulate market vitality and guide social expectations.

[effect]

The overall decrease of social security rate is close to 10%

This new deal does not involve the substantial content of the rate adjustment, but it is clear that the policy of reducing the unemployment insurance rate in stages will continue to be implemented when the implementation deadline, and the deadline for the implementation will not be announced again.

In response to the problem of corporate burdens, general secretary Xi Jinping has made clear that it is necessary to put fish in water and make every effort to reduce the burden on enterprises. 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 the next step to support the development and growth of private enterprises, the first of which is to 'reduce the burden of corporate taxes'.

How much burden has the reduction of the rate reduced for the enterprise? A person in charge of a private enterprise with nearly 100 employees in Beijing told reporters that when all the five social security fees paid for the employees are included, the total social security fees paid by the enterprise and the individual each month are about 300000 yuan. "Every one percentage point reduction, we can save 8000 yuan of labor costs. '

In April this year, you Jun, Vice Minister of the Ministry of human resources and social security, said that since 2015, the social insurance rate has been reduced four times or at different stages. The overall social insurance rate has been reduced from 41% to 37.25%, with an overall decrease of nearly 10%. You Jun said: 'we have calculated that the total cost reduction of the enterprise is about 315 billion yuan. '

The reduction of social security rate has certain effect on reducing the burden of enterprises. However, according to the implementation of the policy of reducing the rate for the first four times, the lowest rate of endowment insurance is still 19%, which is the highest one of the five insurance rates. Some experts said that to continue to reduce the burden of enterprises, we should significantly reduce the rate of endowment insurance.

[questioning]

Reducing the rate of social insurance premium will never affect social security treatment

The bill of social security fund involves "collection" and "payment". The reduction of rate is "reduction of collection" for social security fund pool. Is there any power to pay social security participants after the reduction? Will the reduction of "collection" reduce "payment"?

In April this year, you Jun said at the regular policy briefing held by the State Council that regions that reduce enterprise endowment insurance rates at different stages are conditional, the accumulated balance of the fund can be paid for more than nine months, and the support capacity of the fund is guaranteed. 'it is estimated that the pension fund rate will be reduced by 1 percentage point, and most regions will still be able to receive more than expenditure in the current period, and a few areas that cannot receive enough to offset expenditure can use the accumulated balance to adjust. '

As for whether the rate reduction will affect the treatment, officials from the Ministry of human resources and social security said that the rate reduction will never affect the social security treatment. In the future, with the economic development and the change of the average wages and living costs of employees, the social security benefits will be gradually improved. "Said Jin Weigang, President of the Chinese Academy of labor and social security.

According to the latest figures of the Ministry of human resources and social security, from January to September, the total income of basic endowment insurance, work injury insurance and unemployment insurance fund was 3.93 trillion yuan, an increase of 18.2% year on year, and the total expenditure of the fund was 3.45 trillion yuan, an increase of 16.5% year on year. From this figure, the total income of social security this year is greater than the total expenditure.

On the one hand, the rate is reduced, on the other hand, the total income is increased, and the growth rate is still accelerating. What is this? In fact, a series of policies to enrich social security are gradually showing results. Lu Aihong, a spokesman for the Ministry of human resources and social security, said that by the end of September, 15 provincial (District, municipal) governments, including Beijing and Shanxi, had signed entrusted investment contracts with the Social Security Fund Council, with a total contract amount of 715 billion yuan, of which 416.65 billion yuan had been received and started to invest.