I. National Social Security Contribution Reduction Policy

The State Council executive meeting held on February 18 decided to temporarily reduce or waive corporate contributions to endowment insurance, unemployment insurance, and work-related injury insurance to alleviate the impact of the epidemic on enterprises, especially small and medium-sized enterprises, and to provide a buffer period for enterprises to resume production.

1. Phased reduction and exemption of corporate contributions to endowment insurance, unemployment insurance, and work-related injury insurance. Except for Hubei Province, all provinces can exempt small and micro enterprises from the above three expenses from February to June, and large enterprises can reduce the levy by half from February to April; Hubei Province can implement exemptions for all types of insured enterprises from February to June.

2. Classification criteria for small and micro enterprises

The 'Small and Medium-sized Enterprise Promotion Law of the People's Republic of China' stipulates that small and medium-sized enterprises refer to enterprises established in accordance with the law within the territory of the People's Republic of China with relatively small personnel and business scales, including medium-sized enterprises, small enterprises, and micro-enterprises. The classification standards for medium-sized enterprises, small enterprises, and micro-enterprises shall be formulated by the department responsible for the comprehensive management of SME promotion under the State Council, together with the relevant departments of the State Council, based on indicators such as the number of employees, operating income, and total assets of the enterprise, combined with industry characteristics, and submitted to the State Council for approval. According to the 'Provisions on the Standards for the Classification of Small and Medium-sized Enterprises' (MIIT [2011] No. 300), the enterprise classification standards for each industry are as follows:

II. Unemployment Insurance Stability Support Policy

The state: The 'Opinions of the Ministry of Human Resources and Social Security, All-China Federation of Trade Unions, China Enterprise Confederation/China Entrepreneur Association, and All-China Federation of Industry and Commerce on Stabilizing Labor Relations and Supporting Enterprises in Resuming Work and Production during the Prevention and Control of Pneumonia Epidemic Caused by Novel Coronavirus Infection' (Ministry of Human Resources and Social Security [2020] No. 8) pointed out that the cost of stabilizing employment should be reasonably shared. The policy of returning unemployment insurance contributions to stabilize employment should be used well, and the standard of layoff rate can be relaxed for small and micro enterprises that do not lay off employees or lay off fewer employees due to the impact of the epidemic, so that more enterprises can benefit.

Guangxi: The 'Notice of the General Office of the People's Government of Guangxi Zhuang Autonomous Region on Issuing Several Measures to Support Winning the Battle against Epidemic Prevention and Control and Promoting Stable Economic Operation' (Guizhengbanfa [2020] No. 6) stipulates that efforts should be made to strengthen support for enterprises to stabilize employment and employment security, and support enterprises that have difficulties in production and operation due to the impact of the epidemic to take measures such as adjusting salaries, rotating shifts, shortening working hours, and waiting for jobs to stabilize jobs. 50% of the unemployment insurance premiums actually paid in the previous year will be returned to small and medium-sized enterprises.

Some cities in Guangxi have issued documents to support small and medium-sized enterprises in maintaining operations and stabilizing development, clarifying measures for returning unemployment insurance contributions to stabilize employment. Such as:

It is worth noting that enterprises that can enjoy the return of unemployment insurance contributions to stabilize employment are small and micro enterprises that do not lay off employees or lay off employees. As local policies vary slightly, please consult the local competent authority.