China’s top executive organ, the State Council, announced new measures to further decrease social contribution rates for businesses across the country. Keep reading as we analyze how these policies will be implemented in local jurisdictions and their impact for employers.
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The Comprehensive Plan for Reducing Social Insurance Rates (hereinafter referred to as “the Plan”) was adopted in a high-level meeting earlier this year on March 26. It affects the country’s social security wage base, contributions to the pension fund as well as unemployment and work injury insurance.
The newly announced measures follow President Xi’s pledge at the 2018 Central Economic Work Conference to substantially slash corporate taxes.
Scroll down as we highlight key updates to China’s social contribution system.