More than 10 provincial-level regions have unveiled their social security cut programs, and local governments said lowering the percentage will not affect employee's welfare and benefits, chinanews.com reported.
The report came six weeks after the State Council announced a plan to further reduce the burden on individuals and enterprises by cutting their payment to the social security funds.
The website said more than 10 provincial-level regions have unveiled their social security cut programs, including Shanghai, Chongqing, Sichuan, Xinjiang, Shanxi, Jiangxi, Shaanxi, Tianjin, Hubei, Henan, Shandong and Guangxi.
In terms of pension insurance, Shanghai lowered the rate that enterprises must pay for pension insurance to 20 percent from 21 percent, while Chongqing, Sichuan, Xinjiang, Shanxi, Tianjin, Hubei, Henan, and Guangxi reduced the rate to 19 percent from 20 percent.
In terms of unemployment insurance, Hubei, Shaanxi, Guangxi, Chongqing, Shanxi and Jiangxi cut the amount of money that firms must pay for unemployment insurance to 1 percent, while Henan reduced the rate to 1.5 percent from 2 percent.
Meanwhile, the amount that employees must pay for unemployment insurance was reduced to 0.3 percent of an employee's salary in Hubei and Henan, and 0.5 percent in Guangxi, Tianjin and Chongqing.
Besides pension and unemployment insurance, some local governments, such as Chongqing and Shanghai cut the percentage that enterprises must pay for medical insurance.