China: Period for Reduction and Exemption of Employers’ Social Insurance Contributions Extended

On 22 June 2020, three departments, including the Ministry of Human Resources and Social Security (the “MOHRSS”), issued the Circular on Extending the Period for Implementing Provisional Reduction and Exemption of Employers’ Social Insurance Contributions (the “Circular”).  The Circular specifies that each province, autonomous region, municipality directly under the central government, and the Xinjiang Production and Construction Corps may extend the period for implementing the policies that exempt small-and medium-sized enterprises (SMEs) and micro firms from contributions to three types of social insurance, till the end of December 2020.  Each province (except Hubei Province) may extend the period for implementing the policies that exempt large companies and other insured entities from half of the contributions to three types of social insurance, until the end of June 2020.  Meanwhile, Hubei Province may also extend the period to the end of June 2020, for implementing the policies that exempt large companies and other insured entities from making contributions to three types of social insurance. The Circular is believed to further relieve employers’ social insurance burdens during the coronavirus pandemic.

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For more information please contact Joseph Granato, Communications Manager at L&E Global at joseph.granato@leglobal.org.