Social security fee is expected to exceed 380 billion

On the morning of October 21, at the third quarter press conference of the Ministry of human resources and social security, Nie Mingjun, director of the Department of endowment insurance, said that the social security payment base in most provinces had a certain decline, generally about 10%. It is conservatively estimated that the annual cost reduction should exceed 380 billion yuan. According to him, all provinces with pension insurance unit rates higher than 16% have dropped to 16%, and a few provinces with rates lower than 16%. This year, no adjustment will be made, and the transition will be gradually completed later. Since the comprehensive scheme of reducing social insurance rate was officially implemented on May 1 this year, the social insurance fee reduction has been implemented for nearly half a year.

From the perspective of policy implementation, the social security fee reduction is very rapid, smooth and powerful, and the response of enterprises is generally good. It is estimated that the total cost reduction of the whole year will exceed 380 billion yuan. This is a big red envelope for benefiting enterprises and the people, and it will also be an excellent report card. The reduction of social security fees has actually reduced the burden of enterprises. Although only a few percentage points of adjustment, but the impact on enterprises is very large. For many enterprises, high human cost has already become a heavy burden. Especially in the context of rising labor costs and overcapacity, many traditional enterprises have low profits and rising costs, which cause great business pressure. The social security cost reduction is an effective way to solve the problem of labor cost growth, improve the quality of business operation, and enhance the anti risk ability of the real economy.

Social security reduction is not only to reduce the cost, but also to help enterprises to put on the fight with light clothes, which has multiple effects. "Some enterprises use the reduced payment to develop production, some enterprises use it to set up innovation fund, which stimulates innovation vitality," director Nie Mingjun said at the conference. Previously, the media also reported that some enterprises spend more money on cutting edge after social security reduces fees. Some enterprises choose to buy new equipment and expand production lines; some expand the enrollment of new graduates to make enough talent reserves; some take the opportunity of reducing fees to promote enterprise annuity, improve employee welfare, attract and retain talents. In other words, the money saved from social security will be converted into the expected profits of the enterprise, which will be used as the reinvestment of innovation and development and expand the new profit space of the enterprise. At the same time, with the improvement of corporate profits and active expansion, social security fee reduction indirectly creates more employment opportunities and attracts more employees, which leads to the further expansion of social security payers.

Take Shaanxi as an example, according to the data released by the Department of human resources and social security of Western Shaanxi, by the end of August this year, the number of basic endowment insurance participants of enterprise employees in the province had reached 8.2875 million, an increase of 177200 compared with the end of last year. Although the amount of enterprise contributions has declined, by comprehensive calculation, the income of endowment insurance so far this year is roughly the same as that of the same period last year. This model of "releasing water to raise fish" is conducive to the formation of a virtuous cycle of social security revenue and expenditure and creates better conditions for the sustainable development of social security. It's a good deal to subtract government revenue in exchange for the addition of enterprise benefits and market vitality. On the surface, it is estimated that the annual social security fee reduction will exceed 380 billion yuan this year, but the economic and social benefits behind it may be far higher than that. Social security will help the people, keep more income and money in the hands of enterprises and people. It will stimulate the power of innovation and development, tap the potential of consumption growth, and release new economic momentum. As a matter of fact, social security fee reduction is only a part of tax reduction. According to this year's government work report, in 2019, China will reduce the burden of corporate tax and social security payment by nearly 2 trillion yuan. From the perspective of social security fee reduction, we can see the whole picture. The effect of tax reduction is being released in an all-round way. Enterprises reduce costs, the market increases vitality, and individuals get benefits. Policy dividends are gradually transformed into development dividends. In the long run, these measures will also lay a solid foundation for high-quality economic development and further deepening reform in an all-round way.