The social security rate has dropped again, and all employees of the enterprise have benefited.
CCTV News:On April 4th, the Comprehensive Plan for Reducing Social Insurance Rate was released. The plan will be implemented on May 1st. It is expected to reduce the burden on enterprises by 300 billion yuan this year. How to reduce the social insurance rate? Who benefits more? If the rate is lowered, the income of the fund will inevitably decrease. How can the pension be paid in full and on time?
News background:
According to the plan, the proportion of urban workers’ basic old-age insurance (including enterprises, institutions and institutions) paid by units above 16% will be reduced to 16%. Compared with the current rate of 20% or 19% in most provinces, this rate is reduced by 3— 4 percentage points, equivalent to a reduction of 1/5.
Zheng Bingwen: All employees of enterprises benefit from reducing the rate and ensuring growth.
Zheng Bingwen, director of the World Social Security Research Center of China Academy of Social Sciences: Employment is the foundation of people’s livelihood. Stable employment will help the development of enterprises and really reduce the burden on enterprises. This time, measures to reduce the social security tax rate will support enterprises, which will stabilize employment. The threshold for enterprises to participate in insurance has been lowered, which will not only enhance the vitality and development potential of enterprises, but also help improve the enthusiasm of enterprises and employees to participate in insurance, and bring more employees into the old-age insurance system, forming a virtuous circle of enterprise development and old-age insurance system development.
Crown: To reduce the burden on enterprises is to empower the market.
Wang Guan, commentator of Yangguang Finance and Economics: To reduce the burden on enterprises is to empower the market. Recently, the value-added tax has been greatly reduced, including the further reduction of social security rates. In this year’s government work report, it is proposed that as long as employment is stable and income increases, there will be confidence. Now, there are about 110 million market players.
This time, the efforts to reduce the social security rate are unprecedented. For many enterprises, one of the resources saved is to expand production capacity, and after the expansion of production capacity, new jobs will be recruited, which is the increase in employment. At the same time, many enterprises will seize the time to innovate and invest in research and development. This will greatly improve our future wealth growth and creation efficiency.
News link:
In response to the increasing pressure on fund income and expenditure after the fee reduction, the financial department and the human and social departments have formulated countermeasures to ensure that pensions are paid in full and on time.
— Increase financial subsidies at all levels. In 2019, the central government allocated 528.5 billion yuan in subsidies for basic old-age insurance for enterprise employees, a year-on-year increase of 9.4%. Local finance will also arrange corresponding subsidy funds.
Two, improve the central adjustment fund in solution ratio. This year, the basic pension in upper solution ratio of each province is planned to increase from 3% in 2018 to 3.5%. It is estimated that the scale of the central adjustment fund will reach about 600 billion yuan in 2019, and the benefit scale of the beneficiary provinces will reach about 160 billion yuan.
Third, compact the main responsibility of the provincial government.
Zheng Bingwen: The comprehensive management of pension funds has achieved results.
Zheng Bingwen, Director of the World Social Security Research Center of China Academy of Social Sciences: The World Social Security Research Center of China Academy of Social Sciences will release an actuarial report, covering the 30-year forecast period from now to 2050. I can give you a description of the approximate curve of our estimated results in the next 30 years. From this year until 2027, our annual pension income and expenditure are balanced, and there is a slight balance every year. From this year, the accumulated balance of the basic endowment insurance fund for urban enterprise employees nationwide will increase to about 7 trillion yuan in 2027. Since 2028, the pressure of balance of payments has increased, but it can still be paid for 14 months, and there is no problem in the next decade. Its pressure comes from the long term. In the long term, we need to plan ahead and take various measures to comprehensively manage it, so as to enhance the sustainability of our social security fund.
Crown: the pension level will not be reduced if more measures are taken at the same time
Wang Guan, commentator of Yangguang Finance and Economics: This year, the Ministry of Human Resources and Social Security will continue to actively and steadily promote the investment and operation of the endowment insurance fund, and promote the implementation of the implementation plan for transferring some state-owned capital to enrich the social security fund and enhance the support capacity of the social security fund.
According to estimates, after reducing the rate, the fund can still ensure that the income exceeds the expenditure on the whole, and the accumulated balance of China’s enterprise pension insurance fund is 4.78 trillion yuan. In addition, the national social security fund has a strategic reserve of about 2 trillion yuan, which can ensure the normal payment of pensions on time and in full.
Zheng Bingwen: China’s social security system should explore the China model
Zheng Bingwen, director of the World Social Security Research Center of China Academy of Social Sciences: China’s social security system should explore the China model. Why do you say that?
You Jun, Vice Minister of Ministry of Human Resources and Social Security, said that this round of social security rate reduction is a long-term institutional arrangement. In the future, under the downward pressure of the economy, we should explore a social security system with China characteristics, which is how to keep the level of pension benefits unchanged at a relatively low rate. This is a direction that our reform needs to work hard.
Crown: the dividend of tax reduction and fee reduction helps the growth of the real economy
Wang Guan, a commentator of Yangguang Finance and Economics: On the one hand, enterprises are more competitive in the market by reducing taxes and fees, on the other hand, every enterprise and everyone has to set up their sleeves and work hard. With the dividend of tax reduction and fee reduction, the real economy will be further strengthened and new economic vitality will be released.