There is still room for China to reduce the burden on individuals and enterprises by cutting their payment to the social security funds, Premier Li Keqiang said on March 16 at a press conference after the conclusion of the annual legislative session.
The Premier was referring to the social security package including the pension insurance, occupational injury insurance, medical insurance, birth insurance and unemployment insurance as well as the housing provident funds.
Premier Li said that the State Council had cut the required contribution rate of occupational injury insurance, birth insurance and unemployment insurance last year.
There is still some room to cut the payment requirement to these social security programs as China’s overall social security funds are sufficient, Premier Li said.
He said that more autonomy can be given to local governments to let them appropriately cut the required contribution rate to social security funds in accordance with their own conditions.
“The general principle is to reduce the burden on enterprises and enable the employees to get more cash,” he said.