China: Further National Relief for Enterprise on Social Security in times of the Coronavirus

published on 25 February 2020

 
China is continuing to take measures to contain the coronavirus. In addition to the tax-related incentives, China has recently further published a series of national-wide policies regarding social insurance in an attempt to alleviate the burdens caused by the epidemic on enterprises.

• Pension, unemployment insurance and employment injury insurance »

• Health insurance »

• Housing fund »

The policies are summarised as follows, which will be effective from February 2020:

Pension, unemployment insurance and employment injury insurance

• Small and medium sized enterprises (SMEs) outside Hubei Province and all enterprises inside Hubei Province: The employer’s contribution is fully exempted. The exemption period shall not exceed five months (i.e. from February 2020 to June 2020 at latest).
• Larger enterprises outside Hubei Province: The employer’s contribution is 50 per cent exempted. The exemption period shall not exceed three months (i.e. from February 2020 to April 2020 at latest).

Health insurance

• All enterprises: The employer's contribution is 50 per cent exempted. The exemption period shall not exceed five months (i.e. from February 2020 to June 2020 at latest).

Housing fund

• All enterprises: Postponing contribution to housing fund before 30 June 2020 by application

The latest definition of SMEs could be found in our previous tax article ».

It is to note that the above policies are published at national level as general guidance. The implementation may vary in different provinces. It is suggested that enterprises pay attention to the local implementation in order to optimise the usage of the measures.