Recently, the General Office of the Ministry of Human Resources and Social Security ("MOHRSS") and the General Office of the Ministry of Finance ("MOF") have jointly issued the Circular on Lowering the Rate of the Basic Endowment Insurance Contributions Borne by Beijing-based Central State Organs and Public Institutions (the "Circular").
The Circular reads that according to the guidelines stated in the Circular of the General Office of the State Council on Issuing the Overall Plan for the Reduction of Social Insurance Contribution Rates, clarity is hereby provided for matters in relation to the reduction of the basic endowment insurance contributions borne by Beijing-based central state organs and public institutions. First, the rate of contributions made by entities to the basic endowment insurance will be reduced. To be more specific, the rate of the basic endowment insurance contributions made by central state organs and public institutions in Beijing will be lowered to 16% from May 1, 2019. Second, a smooth transition from the previous insurance contribution policy to the latest one shall be ensured. When such organ or public institution settles the amount of basic endowment insurance contributions it has made before April 30, 2019, after the reduced basic endowment insurance contribution rate has taken effect, the previous policy still applies to such settlement.