The circular of the General Office of the State Council on printing and issuing a comprehensive plan for reducing social insurance rates will reduce the proportion of basic old-age insurance for urban workers (including basic old-age insurance for enterprises and government organs and institutions) from May 1, 2019. If the proportion of old-age insurance contributions of provinces, autonomous regions, municipalities directly under the Central Government and Xinjiang production and Construction Corps (hereinafter collectively referred to as provinces) is higher than 16%, it may be reduced to 16%; at present, if it is less than 16%, transitional measures should be studied and proposed. The specific adjustment or transition plan of each province shall be submitted to the Ministry of Human Resources and Social Security and the Ministry of Finance for the record before April 15, 2019.

Comprehensive programme for reducing social insurance rates

This plan is formulated in order to implement the decision-making arrangements of the CPC Central Committee and the State Council, reduce the social insurance (hereinafter referred to as social security) rates, improve the social security system, and steadily promote the reform of the social insurance premium collection system.

I. reducing the proportion of contributions made by old-age insurance units

Starting from May 1, 2019, we will reduce the proportion of basic old-age insurance for urban workers (including basic old-age insurance for enterprises and government organs and institutions, hereinafter referred to as old-age insurance). If the proportion of old-age insurance contributions of provinces, autonomous regions, municipalities directly under the Central Government and Xinjiang production and Construction Corps (hereinafter collectively referred to as provinces) is higher than 16%, it may be reduced to 16%; at present, if it is less than 16%, transitional measures should be studied and proposed. The specific adjustment or transition plan of each province shall be submitted to the Ministry of Human Resources and Social Security and the Ministry of Finance for the record before April 15, 2019.

II. Continue to reduce unemployment insurance and industrial injury insurance premium rates in stages

Starting from May 1, 2019, provinces that implement the total unemployment insurance rate of 1% will extend the period of periodic reduction of unemployment insurance rate until April 30, 2020. Starting from May 1, 2019, the period of periodic reduction of industrial injury insurance rates will be extended to April 30, 2020. The accumulated balance of the industrial injury insurance fund can be paid for 18 to 23 months. The overall planning area with a cumulative balance of 18 to 23 months may be reduced by 20% on the basis of the current rate. The overall planning area whose cumulative balance can be paid for more than 24 months can be reduced by 50% based on the current rate.

III. Adjust the policy of social security contribution base

Adjust the calculation caliber of the average wage of employed personnel. Each province shall determine the upper and lower limits of the social security individual contribution base based on the weighted calculation of the average wages of employees in non-private units in cities and towns and the average wages of employees in urban private units, and reasonably reduce the base of social security contributions of some insured personnel and enterprises. After adjusting the calculation caliber of the average salary of employed personnel, all provinces should formulate transitional measures for the calculation and distribution of basic pensions to ensure a smooth convergence of the treatment level of retirees.

We will improve the policy on the payment base for individual industrial and commercial households and flexible employees. If individual industrial and commercial households and flexible employees participate in the basic old-age insurance for enterprise employees, they can choose an appropriate contribution base between 60% and 300% of the average salary of employees in full-caliber urban units in the province.

IV. Speed up the overall planning of endowment insurance at the provincial level

All provinces should speed up the overall planning of basic old-age insurance for enterprise workers at the provincial level in the light of measures such as reducing the proportion of old-age insurance units and adjusting the social insurance base, gradually unify policies such as endowment insurance contributions, and measures for verifying the base of unit and individual contributions, and achieve provincial-level unified collection and expenditure of basic old-age insurance funds for enterprise workers by the end of 2020.

V. to increase the proportion of central allocation of pension funds.

We will increase the central allocation of basic old-age insurance funds for enterprise workers, increase the proportion of central transfers to 3.5 percent in 2019, further balance the burden of old-age insurance funds among provinces, and ensure that basic pensions for enterprise retirees are paid in full and on time.

VI. Steadily promote the reform of the collection system of social security fees

In principle, the payment of basic old-age insurance for enterprise workers and other types of insurance will continue to be collected according to the current collection system, and the mode of payment will be stable, "one province will be mature and one province will be handed over." the responsibilities for the collection and management of social security premiums for government organs and institutions and for urban and rural residents are transferred as scheduled. The departments of human resources, social security, taxation, finance, and medical insurance should step up efforts to promote the construction of an information sharing platform, earnestly strengthen information sharing, and ensure the orderly convergence of collection work.Properly handle the problem of historical arrears of enterprises, do not centrally settle the historical arrears of enterprises in the process of the reform of the collection system, and shall not adopt any practice of increasing the actual payment burden of small and micro enterprises, so as to avoid difficulties in the production and operation of enterprises.At the same time, we will rationally adjust the income budget of the social security fund in 2019.

VII. Establish a work coordination mechanism

The State Council shall establish a work coordination mechanism to coordinate and coordinate the work related to the reduction of social security rates and the reform of the collection system of social security premiums. Local governments at or above the county level should establish a work coordination mechanism led by government responsible persons and with the participation of human resources, social security, finance, taxation, and medical insurance departments, coordinate the reduction of social security rates and the convergence of work during the transitional period of the reform of the collection system, and put forward specific arrangements to ensure the smooth progress of all work.

VIII. Conscientiously do a good job in organizing and implementing the work

All localities and relevant departments should strengthen their leadership and meticulously organize and implement them. The Ministry of Human Resources and Social Security, the Ministry of Finance, the State Administration of Taxation, and National Healthcare Security Administration should strengthen guidance, supervision and inspection, study and solve problems encountered in their work in a timely manner, and ensure that various policies and measures are implemented.