Lately, the Ministry of Human Resources and Social Security and the Ministry of Finance have issued the Circular on Relevant Issues concerning the Phased Reduction of Unemployment Insurance Premium Rate (the "Circular").
The Circular contains the following provisions. Firstly, provinces (autonomous regions or municipalities) where the overall unemployment insurance premium rate is 1.5% are allowed to reduce such overall premium rate to 1% from January 1, 2017, and the premium rate reduction shall be in force until April 30, 2018. The respective premium rate applicable to entities and individuals shall be harmonized across the jurisdiction of relevant province (autonomous region or municipality), and the rate at which the premium is paid by individuals shall not be higher than that by entities. Specific plans shall be researched and determined respectively by each province (autonomous region or municipality). Secondly, provinces where the overall unemployment insurance premium rate has already been lowered to 1% shall still be subject to the Circular of the Ministry of Human Resources and Social Security and the Ministry of Finance on Periodically Reducing Social Insurance Payment Rates. Thirdly, all places are required to take into full account impacts on the payment capacity of the fund exerted by certain factors, such as the payment of unemployment insurance benefits in full and on time, raised benefits of unemployment insurance, promotion of reemployment for the unemployed, and implementation of the policy on the employment stabilizing subsidy from the unemployment insurance fund, and make specific plans which shall not be in force until approved by the provincial government and then be submitted to the Ministry of Human Resources and Social Security and the Ministry of Finance for a record.