Policy Content

According to the “Notice from the Ministry of Human Resources and Social Security, Ministry of Finance, and State Taxation Administration on Issues Related to the Phased Reduction of Unemployment Insurance and Work Injury Insurance Rates”, starting from May 1, 2023, the policy of continuing to implement the phased reduction of the unemployment insurance rate to 1% will be extended until the end of 2024.

Policy Background

The policy of phased reduction of unemployment insurance and work injury insurance rates has a strong policy orientation and a high degree of social attention.

Scope of Policy Application

Units participating in unemployment insurance and work injury insurance.

Specific Policy Contents:

According to the current policy of phased reduction of rates, the total unemployment insurance rate is 1%. Within the administrative region of provinces (regions, cities), the rates of units and individuals should be unified, and the individual rate should not exceed the unit rate. The specific local rates are determined by each province (region, city). The accumulative payment period of the work injury insurance fund can be reduced by 20% based on the current rate in the comprehensive areas where the accumulative payment period that can be paid with the fund balance ranges from 18 to 23 months, and can be reduced by 50% based on the current rate in the comprehensive areas where the accumulative payment period that can be paid with the fund balance is more than 24 months.

Policy Implementation

1. Since 2015, the unemployment insurance rate has been "lowered three times and extended five times," with the total rate reduced from 3% to 1%; starting from 2018, the work-related injury insurance began to reduce fees, with the rate lowered by a certain percentage according to the number of months that can be paid. This time, both types of insurance will continue to be implemented, and the extension period has been extended from the original 12 months to 20 months.

The Ministry of Human Resources and Social Security will strengthen tracking and effectiveness assessment, continue to pay attention to the implementation effect of the policy, ensure that both enterprises and workers benefit, and guarantee the stable, safe, and sustainable operation of the system.