Ren She Bu Fa  No. 49
To the People’s Governments of all provinces, autonomous regions and municipalities directly under the central government, and the Xinjiang Production and Construction Corps:
In accordance with decisions and arrangements by the CPC Central Committee and the State Council, theMinistry of Human Resources and Social Security, Ministry of Finance, and State Taxation Administration has issued the Notice on Temporary Reduction and Waiver of Social Insurance Contributions by Enterprises (Ren She Bu Fa  No. 11), which provides for temporary reduction and waiver, beginning in February 2020, of employer contributions to basic old-age insurance, unemployment insurance and work injury insurance programs (hereinafter referred to as the “three social insurance programs”) due from enterprises. This has reduced burdens on enterprises and strongly supported their resumption of work and production. To further help enterprises, especially micro, small and medium enterprises, respond to risks, tide over difficulties, and reduce payment burdens on enterprises and low-income insured persons this year, with the approval of the State Council, the following matters related to extending the implementation of the policies for temporary reduction and waiver of enterprise contributions to the three social insurance programs and related issues are hereby notified:
1.For all provinces, autonomous regions, municipalities directly under the central government, and the Xinjiang Production and Construction Corps (hereinafter collectively referred to as “provinces”), the implementation period of the policies for exempting micro, small and medium enterprises from employer contributions to the three social insurance programs shall be extended to the end of December 2020. The implementation period of the policies of reducing by half the contributions payable by large enterprises and other entities enrolled in the insurance system (excluding government agencies and public institutions, here and below) to the three social insurance program in all provinces (excluding Hubei Province) shall be extended to the end of June 2020. The policy of Hubei Province to exempt large enterprises and other entities enrolled in the insurance system from employer contributions to the three social insurance programs shall continue to be implemented until the end of June 2020.
2.Enterprises facing severe difficulties in production and operations due to the impact of the pandemic may continue to defer their social insurance contributions until the end of December 2020. No late fees shall be collected during the deferral period.
3.With respect to the lower limit of the calculating base for individual social insurance contributions in 2020, each province may continue to adopt 2019 standards. The upper limit of the calculating base for individual social insurance contributions shall be adjusted normally in accordance with regulations.
4.Individual industrial and commercial proprietors that hire employees and are enrolled in the three social insurance programs as enterprises may continue to enjoy the policies for reduction, waiver and deferral of employer contributions according to the measures applicable to enterprises.
5.If individual industrial and commercial proprietors and persons in flexible forms of employment are enrolled in the basic old-age insurance program for enterprise employees in their personal capacity indeed have difficulties in making basic old-age insurance contributions in 2020, they may opt to defer their payments. Contributions may resume in 2021, with no break in their contribution history. Monthly contributions not made in 2020 may be made before the end of 2021. The calculating base may be autonomously determined within the upper and lower limits of the local calculating base for individual contributions in 2021.
6.All provinces shall strictly implement the prescribed scope and timeframe for reduction and waivers as well as the classification standards to ensure the accurate implementation of the measures. Provinces may not introduce policies beyond the policy requirements of this Notice that reduce revenue and increase expenditure without due authorization. All provinces shall give comprehensive consideration to the reduction and waiver policies and other relevant factors this year in making adjustments to their estimates of the revenues and expenditures of social insurance funds in 2020 in accordance with procedure.
7.Provincial governments shall conscientiously assume the main responsibility for accelerating the coordination of the three social insurance programs at the provincial level and ensure that revenues and expenditures of basic old-age insurance funds for enterprise employees are coordinated at the provincial level before the end of 2020. Provincial governments shall improve the allocation of funds, ensure adequate funding support, and ensure that all social insurance benefits are timely disbursed in full.
Provinces shall formulate specific implementation measures based on local actualities, which shall be released within 10 days from the issuance of this Notice and filed with theMinistry of Human Resources and Social Security, Ministry of Finance and State Taxation Administration. Provinces shall speed up organization and implementation efforts and further implement policies for the reduction and waiver of contributions to the three social insurance programs by enterprises. The Ministry of Human Resources and Social Security, Ministry of Finance and State Taxation Administration will timely supervise and inspect the implementation of the policies.
Ministry of Human Resources and Social Security
Ministry of Finance
State Taxation Administration
June 22, 2020