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Shenzhen Lowers Work-related Injury Insurance Premium Rates in July

Shenzhen Human Resources and Social Security Bureau (HRSSB) and Shenzhen Finance Committee have recently jointly issued a circular on adjusting the policy on work-related injury insurance premium rates (Shen Ren She Gui  No. 6 [2016]), stipulating the eight levels of premium rates from 1 July 2016. The new policy aims to reduce the overall level of work-related injury insurance premium rates contributed by employers without affecting the insurance benefits of employees on the basis of balance of payment of the fund.

Prior to July 2016, Shenzhen’s insurance premium for work-related injury was divided into three categories, with the base rates for Category I (lower-risk industries), Category II (medium-risk industries) and Category III (higher-risk industries) at 0.4%, 0.8% and 1.2% (of payroll), respectively since September 2015. To alleviate the burden on the employers, the rates were lowered by 50% in stages from October 2015 until 30 June 2016.

From 1 July 2016 the three categories of work-related injury risk were increased to eight and the applicable rates of various industries were adjusted. On 30 June 2016, the period for Shenzhen’s policy of downward adjustment of work-related injury insurance premium in stages expired. According to the latest circular, the risks of injury types were subdivided from the previous three to eight according to the degree of risk of injury in different sectors from 1 July. The base rate, which is a percentage of the company’s payroll would be adjusted to eight levels of 0.14%, 0.28%, 0.49%, 0.63%, 0.66%, 0.78%, 0.96% and 1.14% from the previous three levels of  0.4%, 0.8%, 1.2%, respectively in September 2015 (prior to the reduction in stages).

A Shenzhen HRSSB official said that the overall level of the base rates of Shenzhen were lowered by about 32.27% compared with the rates of the previous three categories in September 2015 (prior to the reduction in stages), reducing the employers’ burden in the amount of Rmb648 million a year according to preliminary estimates. The rate for lowest-risk industries (such as software and information technology services, insurance) was down from 0.4% to 0.14%, while that of the highest-risk industries (such as coal mining and dressing, ferrous metal mining and dressing) was down from 1.2% to 1.14%. The base rate of each industry sector is lower than before.

The new work-related injury insurance premium rates will not reduce the level of insurance benefits of insured workers.

Content provided by Picture: HKTDC Research
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