Source: CCTV.com

12-22-2008 09:10

Special Report:   Global Financial Crisis

China's Ministry of Labor and Social Security, the Ministry of Finance and the State Administration of Taxation have jointly issued measures to deal with the impact of the global financial downturn on the country's employment. The five measures issued on Sunday aim to reduce the burdens of companies nationwide and foster employment. They include delaying social security payments and lowering some kinds of insurance rate for a certain period of time.

Five measures to deal with the impact of the global financial downturn on China's employment were jointly issued.

 

The new measures allow troubled enterprises to delay payment of social security funds in 2009, with the deferment period less than six months. The delay must be authorized by the provincial governments. The measures also stipulate that the insurance rates for medical treatment, work injury, unemployment and maternity will be allowed to temporarily cut back next year in some regions after authorization from the provincial governments. But the pension insurance rate should not be lowered.

It's estimated that the measures can reduce the burden on enterprises by more than one hundred billion yuan and protect over ten million jobs.

Wang Xi, Company Manager, Beijing said "Our company has 23 employees, that is to say the social security fund for half a year is around 120,000 yuan."

Experts say the new measures will not adversely affect healthcare for employees.

Zheng Bingwen, Researcher of Chinese Academy of Social Sciences said "The social security fund nationwide has a surplus of 1.1 trillion yuan this year. And this sum can ensure the treatment of insurance buyers next year."  

The measures also encourage troubled companies to conduct in-company training for employees and to apply necessary financial support from local governments.

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Editor:Xiong Qu