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What does it mean to lower the social security rate?
What does it mean to reduce social insurance premiums? On August 20th, State Taxation Administration of The People's Republic of China, Ministry of Finance, Ministry of Human Resources and Social Security, National Health and Wellness Commission and National Health Insurance Bureau made video conference arrangements to complete the transfer of social insurance premium and the first non-tax revenue collection responsibility before February 10 this year. From June 20 19 19, the tax authorities uniformly collected various social insurance premiums and the first transfer of non-tax income.

Many people are worried that after social insurance belongs to the tax department, enterprises must pay social insurance in full, and the social insurance burden will increase. Then, in order to reduce costs, enterprises may take measures to reduce employees' wages. But now the State Council should study reducing the social insurance rate as soon as possible, so that the company's expenditure cost will drop and the employees' wages will rise instead of falling!

What is the social insurance rate?

Social insurance includes endowment insurance, medical insurance, unemployment insurance, industrial and commercial insurance and maternity insurance.

The social insurance contribution rate refers to the proportion of the total social insurance paid by employees and employers to individual wages, which is usually expressed by percentage points (%) or one thousandth (‰).

What does it mean to reduce social insurance premiums?

Zhang Yinghua, a researcher at the World Social Insurance Research Center of China Academy of Social Sciences, said that over the years, the rates in different regions have varied greatly. With the free flow of labor and the formation of the national market for products, the compulsory social insurance premiums vary greatly, which affects the fairness of market competition. According to Zhang Yinghua's analysis, unified taxation has at least two effects. One effect is to unify the charging rate, that is, the national rate, and the difference in fees in different regions is only reflected in the charging base.

Reduce the burden, always on the road!

Recently, there has been a lot of discussion about social insurance reform and tax adjustment. What everyone is most concerned about is whether the pressure on small and medium-sized enterprises to pay social insurance is increasing and whether the wages of office workers are decreasing. There is a topic circulating on the Internet about recovering social insurance, and many people are very worried.

However, yesterday, the State Council decided to lower the social insurance rate, which is equivalent to giving the public a reassurance that relief is always on the way.