The Ministry of Human Resources and Social Security, the Ministry of Finance and the State Taxation Administration recently issued the Circular about Provisional Reduction and Exemption of Corporate Contributions in Social Security.
According to the circular, in provinces other than Hubei, micro, small and medium-sized enterprises will be eligible for a waiver of pension fund, unemployment and workplace safety insurance contributions from February to June 2020. Large companies will see their contributions halved for three months. Companies of all types in Hubei who have participated in these insurance schemes will be exempted from the above contributions from February to June. These policies are estimated to reduce enterprises' cost by about 500 billion yuan.
The circular also said that the central government's reallocation ratio of basic endowment insurance funds will increase to 4% in 2020 to offer stronger support to hard-hit regions.