Employers enjoy cut in fees
Shanghai will take related measures from Wednesday amid the country’s efforts to reduce the social security fees employers pay for their staff, the government announced on Tuesday.
From May 1, employers in the city will only have to pay 16 percent of employees’ salaries to the urban workers’ basic eldercare insurance. Currently, the premium rate is 20 percent.
Contributions to work injury insurance will be reduced by 20 percent to between 0.16 and 1.52 percent of employees’ salaries.
The premium rate of unemployment insurance will remain at 0.5 percent from employers and 0.5 percent from employees between May 1 this year and April 30 next year, when the city will continue to suspend collecting back-pay deposits from enterprises to safeguard employees’ interests when employers fail to pay.
The government said the premium rate cut is expected to largely reduce the burden on enterprises and it will ensure the payment of eldercare insurance is not affected.