The general office of the state council has issued a comprehensive plan to reduce social insurance premium rates (hereinafter referred to as the plan) in order to reduce the burden on enterprises, improve the business environment and improve the social insurance system. Officials from the ministry of human resources and social security, the ministry of finance, the state administration of taxation and the state health insurance administration answered questions on the plan.
Q: please brief us on the background of the plan.
A: the party central committee and the state council attach great importance to reducing social security premium rates and reducing enterprise payment burden. Since 2015, social security premium rates have been lowered or phased down five times, involving basic old-age insurance, unemployment insurance, industrial injury insurance and maternity insurance for enterprise employees. It is estimated that the implementation of the current phased rate reduction policy will expire from 2015 to April 30 this year, which will reduce the social security premium burden of enterprises by nearly 500 billion yuan. With the emergence of a series of new situations and new circumstances in China's economic development, the party central committee and the state council have made new demands on enterprises to further reduce the social security rate. In November 2018, xi jinping, general secretary of the communist party of China (CPC) central committee, stressed at a forum for private enterprises that the nominal rate of social security contributions should be lowered in line with actual conditions, and the way of payment should be stabilized to ensure that the actual burden of social security contributions on enterprises should be substantially reduced. Premier li keqiang has repeatedly discussed and proposed lowering social security premium rates. In this year's government work report, he explicitly proposed that local governments could reduce the contribution rate of pension insurance units to 16 percent. In accordance with the decisions and arrangements of the CPC central committee and the state council, the four departments drafted the plan on the basis of in-depth research and demonstration and extensive listening to the opinions of all parties. The plan was deliberated and adopted at the 42nd executive meeting of the state council on March 26, and has been officially issued by the general office of the state council. On April 3, vice premier han zheng and vice premier hu chunhua attended the work conference on lowering social insurance rates and made arrangements for the implementation of the work, calling for the reduction of social insurance rates to be implemented and done well.
Q: what are the overall considerations of the programme? What does it include?
Answer: "plan" overall consideration is, consider to reduce social insurance rate as a whole, perfect social insurance system, promote social insurance premium to collect system reform steadily, implement a plan integratedly, ensure enterprise social insurance expends actual burden to have substantial decline actually, ensure each social insurance pay is paid on time full forehead.
The plan is divided into eight parts, including: first, to reduce the contribution rate of basic old-age insurance units for urban workers to 16% in provinces higher than 16%. Second, we will continue to reduce the premium rates for unemployment insurance and industrial injury insurance on a phased basis, and extend the current policy to April 30, 2020. Third, we will adjust the base policy for social security contributions. The average wage of urban non-private sector and urban private sector employment staff weighted calculation of the average wage of full-caliber urban unit employment staff as the check and approval of workers pay the basic limit of the index, individual industrial and commercial households and flexible employment staff in a certain range of voluntary choice of appropriate pay the base. Fourth, we will accelerate the pooling of old-age insurance at the provincial level, gradually unify old-age insurance policies, and realize unified collection and expenditure of funds at the provincial level by the end of 2020. Fifth, we will increase the central allocation of pension funds to 3.5 percent this year. Sixth, steady progress was made in reforming the system for collecting social security premiums. Each danger plant of enterprise worker is planted in principle temporarily press active collect system to continue to collect, "mature a province, hand over a province". In the process of the reform of the collection system, enterprises shall not be allowed to collect the historical arrears by themselves, and they shall not take any measures to increase the actual payment burden of small and micro enterprises. Seven is to establish work coordination mechanism. At the level of the state council and governments at or above the county level, a coordination mechanism shall be established, led by relevant responsible comrades of the government and attended by relevant departments. Eighth, we will earnestly organize and implement the work.
After the implementation of the plan, it is expected to reduce the burden of social security contributions by more than 300 billion yuan in 2019.
Q: according to the plan, the contribution rate of basic old-age insurance for urban workers will be reduced to 16%. What effect will this measure have?
A: at present, all provinces (including the xinjiang production and construction corps) do not have the same proportion of enterprise payment. In the higher provinces, the proportion is 20%, while in most provinces it is reduced to 19% by stage, and in some provinces it is about 14%. Unit pay a fee proportion is higher on the whole, has certain downward space; Moreover, there are large differences between regions, and enterprises in different regions have different payment burdens. The competition is unfair, which is not conducive to the long-term development of the endowment insurance system.
According to the plan, the provincial unit capture to expend scale can be down to 16%, a 4% lower unit capture to expend scale up, do not set conditions, also is not phased policy, but long-term institutional arrangement, policy strength is big, strong universality, alleviating effect is obvious, highlights the central to reduce the financial burden of enterprise social security contributions in attitude and determination. Second, after the rate reduction in various regions, the national rate difference will be narrowed, which is conducive to balancing the payment burden of enterprises, promoting the formation of a fair market competition environment, is also conducive to the gradual unification of the national rate, and promoting the national pooling of endowment insurance. Third, after reducing the rate, the "threshold" of participating in the insurance premium decreases, which is conducive to improving the enthusiasm of enterprises and employees to participate in the insurance, and will bring more employees into the employee endowment insurance system, forming a virtuous cycle of enterprise development and endowment insurance system development.
Ask: each province town worker basic endowment insurance fund balance case is differ, fund of some provinces is more than close, how to reduce endowment insurance rate?
Answer: according to "plan", town worker expends the province of proportion of pay cost of unit of primary endowment insurance 16%, can reduce scale of pay cost of unit of endowment insurance 16%. The specific reduction rate is proposed by the provinces, which is consistent with the main responsibility of provincial governments to ensure pension payment. At present, there are some structural problems in the distribution of pension fund balance in China. Affected by different system dependency ratio and other factors, there are regional differences in endowment insurance fund balance, and different provinces face different pressure to reduce the rate. Generally speaking, regions with high dependency ratio have more optimistic fund balance and less difficulty in reducing the rate. And raising than low region, fund balance pressure, drop rate faces certain practical difficulties, the central will by continuing to increase the intensity of financial aid, improve enterprise worker is basic endowment insurance fund measures to give support, such as the central dispensing proportion to help these areas after the drop rate can ensure annuities on time full specified amount extends, create conditions for formation of fair market competition environment, promote enterprise development and the virtuous cycle of endowment insurance system construction.
Q: "plan" put forward to extend period to reduce rate of unemployed insurance and inductrial injury insurance, how to consider?
A: in March 2015, the state council decided to reduce the total unemployment insurance premium rate from 3% to 2%. In May 2016, the state council decided to cut it from 2% to 1%-1.5%. In January 2017, the state council decided to cut the total rate to 1 percent for one year in provinces with 1.5 percent. In April 2018, the state council extended the policy to April 30, 2019. From 2015 to 2018, about 300 billion yuan was cut from unemployment insurance funds by lowering unemployment insurance rates. At present, we have a strong reserve capacity for unemployment insurance funds, and are able to continue to implement the policy of reducing fees in stages. Local governments can ensure the implementation of the policy of reducing unemployment insurance rates. While reducing the burden on enterprises, we can ensure that unemployment insurance benefits are not lowered and that they are paid in full and on time, thus ensuring the smooth operation of unemployment insurance funds. The plan explicitly extends the policy of reducing unemployment insurance premium rate by stages until April 30, 2020.
China's industrial injury insurance industry differences and units floating rate system. 2015, according to the central about "properly reduce social insurance rates" requirements, human resources and social security ministry, the ministry of finance jointly issued the notice about adjusting rate of inductrial injury insurance policy (people club department is sent [2015] no. 71), on the basis of the overall level of lower rates of inductrial injury insurance, adjust improve the original rate of inductrial injury insurance policies, the benchmark rate divided by the three types of risk by the original industry refining into eight classes. In order to reduce the cost of social security contributions, the ministry of human resources and social security and the ministry of finance jointly issued the circular on continued phased reduction of social insurance premium rates (no. 25 [2018] issued by the ministry of human resources and social security) in 2018, stipulating that the industrial injury insurance premium rates will be lowered periodically from May 2018 to April 2019. To further reduce the cost of enterprise social security contributions, the state council decided to inductrial injury insurance phased extended JiangFei policy execution for one year, namely since May 1, 2019, extending stage to lower rates of inductrial injury insurance deadline to April 30, 2020, accumulated balance fund of inductrial injury insurance to pay for months as a whole the area between 18 and 23 months can be based on current rate by 20%, the cumulative balance to pay for months in the 24 months or more as a whole the area can be lowered by 50% on the basis of current rate.
Q: the scheme has also adjusted the contribution base policy. What is the change compared with the previous policy?
Answer: pay cost base also is the important parameter that affects enterprise and individual social security to pay cost burden. According to the plan, the policy of contribution base should also be adjusted. First, it is clear that the average wage of urban non-private sector employees and urban private sector employees is weighted and calculated as the index of the upper and lower limits of the contribution base of employees. 2 it is individual and industrial and commercial door and personnel of flexible obtain employment attend endowment insurance, can choose appropriate capture to expend base to be in the range of 60% to 300% of average salary of personnel of unit of employment of whole caliber town.
Main consideration, the whole caliber unit employment staff average wages in cities and towns, compared to the original rules of the private sector to on-the-job worker average wage, can better reflect the actual average wage level ginseng protect personnel, approved by individual pay cost base on the lower limit, the low level of wages of worker pay expends base can be reduced, pay cost burden. In some enterprises, especially small and micro enterprises or labor-intensive enterprises, many employees will pay their fees in accordance with the lower limit of the base for payment. For example, suppose that the average salary of the non-private employees in a certain region is 6000 yuan, then the lower limit of the original individual contribution base is 3600 yuan. Calculating diameter after adjustment, the whole caliber unit employment in cities and towns the average salary is 5000 yuan, the base of individual pay cost lower down to 3000 yuan, corresponding to the worker can be calculated at 3000 yuan payment amount, before and after contrast, expends base to reduce 600 yuan per month, individual pay cost 8%, monthly pay cost burden corresponding relieve 48 yuan, as an individual in the enterprise expends base the sum determine unit capture expends base, the enterprise expends base correspondingly to reduce 600 yuan per month, payment can further reduce the burden. For individual industrial and commercial households and flexible employment personnel, after the policy adjustment, not only the average wage calibre is adjusted and the standard is reduced, but also the range of choice is enlarged. Those with a low base can further reduce the payment burden, while those with a higher income can also choose a higher base to improve their pension after retirement. For instance, press above example, if be personnel of flexible obtain employment, monthly capture expends base to be able to change from 6000 yuan to expend with 3000 yuan lower limit, criterion monthly capture expends base to reduce 3000 yuan, expend by 20% scale capture, monthly capture expends burden to reduce 600 yuan correspondingly.
Q: at present, how about the work progress of endowment insurance provincial pooling? What are the requirements of the programme?
Answer: of social insurance fund centralized as a whole adjust use is to develop the core that system of social insurance ensures a function, raise social insurance to plan as a whole the imbedal requirement that the level is social insurance system, fund plans as a whole as a whole the level is higher, be helpful for dispersing risk more, enhance fund to safeguard ability. The 19th national congress of the communist party of China (CPC) explicitly called for the national pooling of old-age insurance as soon as possible. At present, the provinces (including the xinjiang production and construction corps) has been preliminarily established a provincial enterprise worker is basic endowment insurance to plan as a whole system, but progress around the imbalance, some provinces have been implemented unified collection at the provincial level endowment insurance fund expenditure, most provinces is a provincial dispensing system, endowment insurance fund fund as a whole in all aid role play is not enough. Additional, individual province still exists policy of province endowment insurance is not unified wait for a problem, need to unify standard gradually.
The CPC central committee and the state council attach great importance to accelerating the pooling of old-age insurance at the provincial level. Both the central economic work conference held at the end of last year and the government work report this year have put forward requirements for accelerating the pooling of old-age insurance at the provincial level. Accelerating the provincial pooling is the inevitable requirement of perfecting the endowment insurance system and the basis of realizing the national pooling of endowment insurance. To this end, the plan requires all provinces to accelerate the provincial pooling, gradually unify the endowment insurance policy, and realize the provincial pooling of funds by the end of 2020, laying a solid foundation for the national pooling of endowment insurance.
Q: what progress has been made in promoting the central adjustment system of basic old-age insurance funds for enterprise employees? What is the programme's arrangement for this year's central allocation of funds?
Answer: the system of central adjustment of fund of primary endowment insurance of enterprise worker is the first step that endowment insurance countrywide plans as a whole, build since July 1, 2018 carry out. Last year, the central government allocated 3 percent of the total funds. The total amount of half-year central government funds was over 240 billion yuan. Seven eastern provinces received 61 billion yuan in net transfers, and 22 central and western regions and provinces with old industrial bases benefited. "The plan" clear funds central dispensing would rise to 3.5% in 2019, expected the fund to adjust the scale is about more than 6000 one hundred million yuan, benefiting provinces ShouYiE will reach 160 billion yuan, regulate strength significantly increased compared with that in 2018, will further equilibrium between the provinces burden of endowment insurance fund, provide strong support for the implementation of lower rate of social security work.
Q: how will social security premiums be collected after the implementation of the plan?
Answer: according to "plan", company worker is primary endowment insurance and company worker are other danger plant capture expends, in principle temporarily by active collect system to continue to collect, namely, collect by social security formerly, collect by tax formerly continue to collect by tax, stable capture cost means, "mature one province, hand over one province". The duties of collecting and administering social insurance premiums of government offices, public institutions and urban and rural residents were transferred to tax authorities as scheduled.
Q: will the timely and full payment of pensions be affected by the reduction of the premium rate?
A: reduce the endowment insurance rate in effectively at the same time, to reduce the financial burden of enterprise social security contributions will indeed reduce the endowment insurance fund income, increase the fund balance of pressure, but the national pension fund as a whole is greater than, cumulative balance continues to increase, will not result in overall pension payment risk, will not affect annuities on time full specified amount extends. According to the latest annual report, in 2018, the basic pension fund for enterprise employees received 3.7 trillion yuan in revenue and spent 3.2 trillion yuan. The accumulated balance of the fund at the end of 2018 was about 4.8 trillion yuan, which has a strong supporting capacity. It is estimated that after the fee reduction, the current balance of income and expenditure can still be maintained for a period of time in the future. At the same time, with the development of economy and society, the state will continue to raise the level of pension for retirees. At present, the ministry of human resources and social security and the ministry of finance are implementing the annual adjustment of basic pension in 2019 in accordance with the state council's plan. This is the 15th consecutive year that the basic pension of enterprise retirees has been raised. This year, the overall increase rate will be 5%.
Q: after the fee reduction, some regions may face more serious conflicts between fund revenues and expenditures. What are your countermeasures?
A: structurally, most provinces are cutting fees