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Notice of the Ministry of Human Resources and Social Security, Ministry of Finance and State Taxation Administration on the Temporary Reduction and Waiver of Enterprise Social Insurance Contributions
Update:2021-05-25    Source: Ministry of Human Resources and Social Security

Ren She Bu Fa [2020] No. 11

To People’s Governments of all provinces, autonomous regions, and municipalities directly under the central government, and the Xinjiang Production and Construction Corps:

  In order to fully implement the guiding principles of the important directives by President Xi Jinping on COVID-19 containment, ease the difficulties faced by enterprises, promote their orderly resumption of work and production, and support the stabilization and expansion of employment, pursuant to relevant provisions of the Social Insurance Law and with the approval of the State Council, some matters related to the temporary reduction and waiver of enterprise contributions to basic old-age insurance, unemployment insurance and work injury insurance programs (hereinafter referred to as the “three social insurance programs”) are hereby notified:

  1.Starting from February 2020, all provinces (excluding Hubei Province), autonomous regions, and municipalities directly under the central government, and the Xinjiang Production and Construction Corps (hereinafter collectively referred to as “provinces”) may exempt micro, small and medium enterprises from employer contributions to the three social insurance programs in accordance with the impact of the pandemic and the financial capacity of their insurance funds. Waivers shall not exceed a period of five months. For large enterprises and other entities enrolled in the social insurance system (excluding government agencies and public institutions), contributions to the three social insurance programs may be reduced by half. Reductions shall not exceed a period of three months.

  2.Starting from February 2020, Hubei Province may exempt entities enrolled in the social insurance system (excluding government agencies and public institutions) from employer contributions to the three social insurance programs for a period not exceeding five months.

  3.Enterprises facing severe difficulties in production and operations due to the impact of the pandemic may apply to defer their social insurance contributions. In principle, the deferral period shall not exceed 6 months. No late fees will be collected during this period.

  4.According to the Notice Regarding the Issuance of Regulations for the Classification Standards for Small and Medium Enterprises (Gong Xin Bu Lian Qi Ye [2011] No. 300) released by the Ministry of Industry and Information Technology, National Bureau of Statistics, National Development and Reform Commission and Ministry of Finance, and in light of prevailing local actualities, provinces shall determine which enterprises are to be exempt from contributions or enjoy reductions. Provinces should strengthen inter-departmental sharing of information to avoid adding transactional burdens on enterprises.

  5.It is necessary to ensure that the social insurance rights and interests of insured persons are not affected. Enterprises shall perform their obligation to withhold and pay individual contributions due from their employees in accordance with law. Social insurance agencies shall properly record individual social insurance benefit credits.

  6.Provincial governments shall conscientiously assume the main responsibility for ensuring that all social insurance benefits are timely disbursed in full. Provincial governments should accelerate the provincial-level coordination of old-age insurance and ensure that revenues and expenditures of old-age insurance funds are coordinated at the provincial level by the end of 2020. In 2020, the central adjustment ratio for basic old-age insurance funds for enterprise employees will be raised to 4% to strengthen support for poor areas.

  7.Provinces shall take into account local actualities in implementing, standardizing and strengthening fund management in accordance with the scope and timeframe of reduction and waivers specified in this Notice, and shall not, on their own initiative, introduce other policies that reduce revenues and increase expenditures. They may reasonably adjust their estimates regarding the revenues of insurance funds in 2020 in light of reductions and waivers.

  Provinces shall raise their policy awareness, effectively strengthen organization and leadership, coordinate work on COVID-19 containment and economic and social development, speed up the formulation of specific implementation measures and implement reduction and waiver policies as soon as possible. Specific implementation measures issued by each province shall be filed with theMinistry of Human Resources and Social Security, Ministry of Finance and State Taxation Administration before March 5. Human resources and social security, finance, and authorities at all levels shall duly fulfill their duties, strengthen communication and collaboration, and go all out to do a good job in enterprise-related social insurance work during the period of COVID-19 containment, and ensure the effective implementation of all policies and measures for the reduction and waiver of social insurance contributions by enterprises.

Ministry of Human Resources and Social Security

Ministry of Finance

State Taxation Administration

February 20, 2020

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