A burden-reducing policy has led to a reduction of 43 percent in employees' personal pensions
Introduction: Recently, a certain region in China has implemented a policy aimed at reducing the burden on enterprises, but it has caused the problem of a significant reduction in the personal pension of employees. This article will provide an analysis of this policy, the reasons and implications behind it, and what can be done about it.
1. Policy background.
In order to reduce the burden on enterprises, a certain region in China has launched a policy of reducing or exempting social insurance premiums for enterprises in stages. According to the policy, micro, small and medium-sized enterprises are exempted from the basic pension, unemployment, and work-related injury insurance premiums for the part of the unit contribution from February to June 2020 (5 months). Individually-owned industrial and commercial households that participate in the insurance in the form of units shall be implemented with reference to small, medium and micro enterprises. In addition, the basic pension, unemployment, and work-related injury insurance premiums paid by units from February to April 2020 (3 months) will be halved for large enterprises and other insured units (excluding government agencies and institutions). For enterprises (excluding government agencies and institutions), the unit contribution of basic medical insurance from February to June (5 months) will be halved.
Second, policy implications.
1.Reducing the burden on enterprises: After the implementation of the policy, the burden on enterprises, especially small and medium-sized enterprises, has been reduced to a certain extent, which will help enterprises tide over difficulties.
2.Reduction of employees' personal pensions: However, this policy has led to a reduction in employees' personal pensions. According to the policy, the social security fees reduced or exempted by enterprises should have been borne jointly by enterprises and employees. Nowadays, enterprises are partially exempted, and the part that employees have to bear has increased accordingly. As a result, the actual burden of employees' personal pensions increases, resulting in lower pensions.
3.Increased pressure on social security**: During the implementation of the policy, the income of social security ** decreased, but the expenditure did not decrease. This will increase the operational pressure of social security and have a certain impact on the formulation and adjustment of social security policies in the future.
3. Countermeasures.
1.Adjustment policy: In view of the reduction of employees' personal pensions, the department should consider adjusting the policy to ensure that the legitimate rights and interests of employees are not affected. For example, a certain subsidy will be given to the part of the social security expenses borne by the employee to reduce his or her burden.
2.Improve the social security system: In the long run, it is necessary to improve the social security system to ensure the sustainable development of social security. This includes increasing the rate of social security premiums, expanding social security coverage, and strengthening the management of social security**.
3.Strengthen policy publicity and interpretation: ** The department should strengthen policy publicity and interpretation, so that the majority of employees can fully understand the content of the policy and its impact, and improve the awareness of employees' rights and interests.
4.Corporate social responsibility: Enterprises should actively fulfill their social responsibilities and pay attention to the well-being of employees. Within the scope permitted by the policy, enterprises can make up for the reduction of pensions caused by the social security reduction and exemption policy by increasing the wages of employees and improving welfare benefits.
Summary. Although the policy of reducing or reducing the social insurance premiums of enterprises in stages implemented in a certain region has reduced the burden on enterprises to a certain extent, it has led to the reduction of personal pensions of employees. **Departments and enterprises should work together to ensure that the legitimate rights and interests of employees are protected by adjusting policies, improving the social security system, and strengthening policy publicity and interpretation. At the same time, enterprises should also actively fulfill their social responsibilities and pay attention to the well-being of employees.