Recently, Premier Li Keqiang presided over an executive meeting of the State Council to implement the plan of reducing the social insurance rate. From May 1, 2019, the base of social insurance payment will be reduced from 16% to 13%, which is a good event for many enterprises and employees. So what's the impact of lowering the social security payment base on life?
Social security payment base to be lowered
The social security payment base will be lowered soon, which will arouse people's attention. In the future, your income may increase, reduce the social security payment burden, and ensure that the social security treatment of employees remains unchanged. What is the standard of social security payment base in 2019? What is the impact on you?
The executive meeting of the State Council held on March 26 decided to lower the social security payment base. In the past, all localities changed the average wage of full-scale employment personnel from the average wage of on-the-job employees in Urban Non private units to the average wage of full-scale employment personnel weighted by Urban Non private units and private units in the province, and verified the upper and lower limits of the payment base, so as to reduce the payment base. Individual businesses and flexible employees can voluntarily choose the payment base between 60% - 300% of the average wage in the province. This means that as the social security payment base decreases, your income may increase.
We will extend the policy of reducing unemployment and work-related injury insurance rates for another year until the end of April 2020. Among them, if the accumulated balance of work-related injury insurance fund can be paid for 18 to 23 months, the current rate can be reduced by another 20%, and if it can be paid for more than 24 months, it can be reduced by 50%. The meeting stressed that all localities should not take any measures to increase the actual payment burden of small and micro enterprises, and should not collect the historical arrears on their own, so as to ensure that the social security benefits of employees will not be affected and the pension will be paid in full and on time.