The contribution rate for social security has been lowered, does it have any effect on the average employee? Is it good or bad?

Our personal social security contribution ratio is about 8% for pension insurance, 2% for medical insurance, 0.5% for unemployment insurance, and then 0.5% for work injury insurance and maternity insurance, which we don't need to bear. Then as a business unit needs to bear the proportion of social security, about 20% of the pension insurance needs to bear, medical insurance needs to bear 60% of the unemployment insurance needs to bear 0.5%, industrial injury insurance needs to bear 0.5%, maternity insurance needs to bear 0.4%.

So the proportion of social security contributions from individuals and organizations can reach almost 40%, which is a relatively high proportion of contributions in the world. But the proposed reduction of the social security fee rate, mainly for the enterprise to bear the proportion of the pension insurance is too high to reduce a certain proportion of contributions, from three years ago has been implemented to reduce the social security fee rate. And many areas have been reduced from 20% to 19%, and even some areas to 18% of the pension insurance such a payment, so to say that this is also our business units to bear the rate of social security premiums, to reduce the burden of certain enterprises, played a certain role. Then the pressure of labor costs of enterprises to reduce, in fact, for the enterprise operating profit improvement made a good pavement .

Of course there is a big change in social security in 2019, that is, the social security tax reform, then the future of social security by the tax began to collect, so that requires the garden where the business unit in accordance with a total number of employees and the employee's own salary standard to buy social security, in fact, such a reform has invariably increased the pressure on the enterprise's contribution, because many businesses are not in accordance with the employee's total number and the employee's own salary standard to buy social security. The unit he previously did not according to the employee's own salary standard to pay social security,then this way, if you want to pay according to the employee's own salary to pay social security, then increase the direction of the enterprise and the employee to buy a social security fee rate. Then accordingly, if we increase the personal contribution, the actual hand wages not only will not increase, but also will be reduced.