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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.

This content appears as a courtesy of Horizons Corporate Advisory, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit