The country’s latest social security reduction and exemption policy will be introduced in 2022 and implemented in 2022.

It is mainly aimed at companies’ reduction and exemption policies for three items: pension insurance, unemployment insurance and work-related injury insurance.

While medical insurance is levied at half the rate, maternity insurance is not included in the exemption.

So now medical insurance and maternity insurance still need to declare and pay fees.

At the same time, the social security reduction and exemption policy also stipulates that provident fund payments can be applied for extension until the end of June, but cannot be reduced or reduced.

Service industry: The policy of phased reduction of unemployment insurance and work-related injury insurance premium rates will continue to be implemented in 2022.

For companies that do not lay off employees or have few layoffs, they will continue to implement the inclusive unemployment insurance and job stabilization return policy, and in 2022, the return ratio for small, medium and micro enterprises will be increased from 60% to a maximum of 90%.

Qualified service industry market entities can enjoy it.

Catering industry, retail industry, tourism industry: Provinces with large balances in unemployment insurance and work-related injury insurance funds are allowed to implement a phased-in deferred payment policy for unemployment insurance and work-related injury insurance premiums for catering enterprises. The specific measures will be determined by the provincial people's government.

Qualified catering enterprises can apply to defer payment for a period of no more than one year upon approval by the people's government of the participating places. Late payment fees will be waived during the deferment period.

It is clarified that after the policy of phased reduction of unemployment insurance and work-related injury insurance premium rates expires at the end of April 2021, it will be extended for one year to April 30, 2022.

According to the stipulated conditions for phased reduction of work-related injury insurance premium rates and combined with the cumulative balance of the city’s work-related injury insurance fund, the policy of phased reduction of work-related injury insurance premium rates will not be continued after its expiration on April 30, 2021.

The work-related injury insurance premiums for employers in Category I to Category VIII industries in this city are collected normally according to the current rates. When the social insurance agency approves the floating rates for employers, the adjusted rates shall be used.

Legal basis: Article 1 of the "Notice on Phased Reduction and Exemption of Enterprise Social Insurance Premiums" will exempt small, medium and micro enterprises from the payment of three social insurance units for a period of 5 months starting from February 2020; for large enterprises,

Private non-enterprise units, social groups and other insured units (excluding government agencies and institutions) will have their contributions paid at half the rate for three months.