Lately, newly upgraded micro and small enterprises in Jiangbei District (hereinafter referred to as “upgraded” enterprises) got a good news when paying for social insurance premium for their employees, i.e., the social insurance premium for July is to be reduced remarkably, thanks to the temporary social insurance premium ratio-lowering policy for “upgraded” enterprises.

According to statistics, 58 “upgraded” enterprises in Jiangbei District are able to enjoy the very favorable policy this year and to save 2.33 million yuan that is to be reduced. Out of the total reduction of 2.33 million yuan, 1.42 million yuan is reduced from primary endowment insurance, and 910 thousand yuan from basic medical insurance premium for over 3,000 employees. Enterprises that have registered basic social insurance and fulfilled payment obligations according to regulations and certified as micro and small enterprises above designated scale from Year 2015 to Year 2017 by Ningbo Municipal Economic and Information Technology Committee and Ningbo Municipal Statistics Bureau are able to enjoy the policy. Qualified enterprises can enjoy temporary reduction of the proportion of payment and their the annual reduction rate is equivalent to 1 month’s payment of endowment and medical insurances within 3 years’ time after being certified as upgraded for the first time. The reduction would be made by the local social insurance administration institution and local tax bureau and requires no application from enterprises themselves.

It is important to note that this reduction of social insurance is only applicable to the proportion of the payment paid by enterprises. The personal proportion will not be reduced. The application, assessment and certification and the payment procedure remain the same. Enterprises are supposed to operate in accordance with the existing methods, and the social insurance benefits of the insured workers are not affected.