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Shenzhen Cuts Old-Age, Accident and Unemployment Insurance Premiums

The old age insurance premium rates applicable to Shenzhen’s state bodies and public institutions have been reduced from 20% to 16%. The change was outlined in the Shenzhen Municipal People’s Government’s recently-issued Implementation Plan for Reducing Social Insurance Premium Rates, a policy document that also indicates that unemployment and injury premiums are to be progressively lowered, while the upper and lower limits for old-age insurance are to be adjusted.

Intended to reduce the financial burden on enterprises, while improving the social insurance system, the key points of the initiative include:

  • As of 1 May this year, the basic old-age insurance premium rates applicable to Shenzhen’s state bodies and public institutions have been reduced from 20% to a unified rate of 16%. From the same date, the old-age insurance premium rate for enterprise employees will be progressively reduced to 16%
  • Again as of 1 May, adjustments have been made to the upper and lower basic old-age insurance premium base limits applicable to the city’s state bodies and public institutions, as well as to the basic old-age insurance requirements for enterprises
  • On an ongoing basis, unemployment insurance and work-related injury insurance premiums are to be progressively reduced. In line with this, all insured units will benefit from a 30% phased reduction of their existing premiums until 31 December 2020. This will be facilitated by the introduction of a benchmarking system and the adoption of a sliding scale for compensation payments for eight categories of work-related injuries

For further details, please access the following links:

Circular of the General Office of the Shenzhen Municipal People’s Government on Issuing the Implementation Plan for Reducing Social Insurance Premium Rates (in Chinese)

Social Insurance Premium Set for 1 May Cut

Content provided by Picture: HKTDC Research
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