(Yicai Global) May 1 -- China has reduced social insurance premiums that employers need to pay for their employees to lessen companies' financial burdens and offer stimulus to the slowing economy.
The government has decreased urban workers' basic pension premiums to 16 percent from the earlier rate between 19 percent and 20 percent, following the cabinet's plan, state-backed Xinhua News Agency reported.
The rate cut can help companies to save around CNY190 billion (USD28.2 billion) each year, You Jun, vice minister of the Ministry of Human Resources and Social Security, wrote in the report.
The nation's policy of employers' lowered contributions, aimed to cover employees against unemployment and work injuries, was extended until April 30, 2020.
Editor: Emmi Laine