The social security contribution rate of enterprises in China decreased from 20% to 16%. What is the significance of reducing the social security contribution rate?

The social security contribution rate of enterprises in China decreased from 20% to 16%. The significance of reducing the social security contribution rate is as follows:

First of all, it can help some enterprises reduce the burden and pressure. In fact, for many enterprises now, the pressure to pay employees five insurances and one gold is very great. After all, the average employee's five insurances and one gold every month are hundreds or even thousands of dollars. If a company has dozens or even hundreds of employees, the cost of paying social security is still quite huge. Now that the enterprise social security contribution rate is lowered, it means that the social security fee paid by enterprises to employees will drop a little.

Although it seems that it has only dropped by 4 points, it is a very good welfare for medium and large enterprises. For example, the social security fee paid by a company to employees every month is 10w, and 4 points can save 4,000 yuan. If the social insurance premium paid reaches millions, then the enterprise can also leave tens of thousands of yuan, so reducing the social insurance premium payment rate is definitely beneficial to the enterprise and the country? Let profit? The behavior of.

Second, enterprises can be urged to voluntarily insure their employees. Many employers are unwilling to insure their employees, especially some private enterprises and small and micro enterprises. Because of their limited operating income and profits, the bosses of these companies will not accept formal employment contracts. Basically, recruiting people is also very casual. As long as the salary is negotiated, you can go to work. There is no company treaty. Therefore, these employers are basically reluctant to insure their employees. They will make an agreement with employees in advance, compensate for certain expenses, and then not pay social security.

Although some employees don't want to, but people under the eaves, how can they not bow their heads and can only promise. For enterprises, it is because the social security payment rate is too high that many employers are unwilling to pay. Now that the social security payment rate has been adjusted, it is easier for employers to accept it. This makes some private enterprises more willing to consciously join the standardized company management system.

This is also a good thing for the employees of the company, so that some self-employed or small business employees can enjoy the same welfare benefits as regular companies, which is a policy that helps to standardize all enterprises. From the company's point of view, the state can reduce the burden and pressure of the company, which can encourage enterprises to voluntarily insure their employees. Therefore, this matter can increase the fairness of competition among enterprises and also allow employees to enjoy better treatment. This is a win-win situation, and employees have more employment options.