What is the meaning of phased fee reduction

The phased reduction of fees is the calculation of workers' compensation insurance premiums by employers based on the total wages of employees in the previous year multiplied by the industry benchmark rate.

The phased reduction of social security fee rates is as follows:

Reduce the proportion of urban workers' basic old-age pension insurance unit contributions, higher than 16% of the provinces, can be reduced to 16%. Continuing the phased reduction of unemployment insurance and industrial injury insurance premium rates, and extending the current phased rate reduction policy for another year to April 30, 2020 after its expiration.

Adjusting the social security contribution base policy. The average salary of employed persons in urban units, weighted by the average salary of employed persons in non-private urban units and private urban units, will be used as an indicator for the upper and lower limits of the approved employee contribution base, and self-employed industrial and commercial households and flexibly employed persons may voluntarily choose an appropriate contribution base within a certain range.

Speeding up the provincial-level coordination of pension insurance, gradually unifying pension insurance policies, and realizing unified fund collection and expenditure at the provincial level by the end of 2020. The central transfer ratio of the pension insurance fund was raised to 3.5 percent this year. Steadily advancing the reform of the social security fee collection system. In principle, the various types of insurance for enterprise employees will continue to be collected in accordance with the current collection system for the time being, and will be "transferred to a province when it is ripe".

Reducing the social security fee rate on our impact:

China's basic social insurance for enterprise employees includes basic social pension insurance, medical insurance, industrial injury insurance, unemployment insurance, maternity insurance. According to statistics, the current rate of the five insurance premiums of China's social insurance totaled 39.25%. Since last year, the State Council has lowered the contribution rate for work injury insurance, unemployment insurance and maternity insurance. Five insurance premiums from the overall point of view there is still room for appropriate adjustment.

Will pensions be less with lower social security rates?

Currently, the pension insurance benefits of retired workers consist of two parts: the basic pension and the personal account pension. According to the basic pension formula, the basic pension is mainly dependent on three factors: the average monthly salary of employees on the job in the previous year when the employee retired, the employee's own average contribution salary and the number of years of contribution, and the enterprise or individual contribution rate is not related to the high and low.