Changes to social security insurance policies have been issued to stabilise companies impacted by the recent COVID outbreaks. Namely the policies impact employment and support cash flow difficulties by reducing the financial stress for smaller employers. We highlight the main social security insurance policies changes below.
Lowered percentages
Effective from the 27 March till the 31 December 2022, the percentage related to two types of social security have been lowered.
- Unemployment insurance has been lowered from 1% to 0.5% for both employer and employee
- The benchmark rate for industrial injury insurance of employers will continue to be lowered by 20%, based on the state established industry rate
Deferred payment
Qualifying companies can defer the employer’s payments related to basic pension insurance, unemployment insurance, and work-related injury insurance. Eligible enterprises, industrial and commercial households include those in catering, retail, tourism, civil aviation, and road, water, and railway transport.
- Deferral period for basic pension insurance premiums is from April to June 2022
- Deferral period for the payment of unemployment insurance and work-related injury insurance premiums is from April 2022 to March 2023.
Enterprises who have already paid the premiums for April 2022 can apply for a deferral from May onwards or apply for a refund for premiums paid in April.
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