Shenzhen to relieve 4.4B yuan for enterprises

The Shenzhen Municipal Human Resources and Social Security Bureau will relieve the enterprises’ burden by around 4.4 billion yuan (US$691.4 million) and delay social security payments of 6.8 billion yuan in 2022 through delayed payments, refunds, fee reduction and subsidies to enterprises.

“The delayed payment will help us save around 3.5 million yuan a month and will greatly relieve our burden,” said a manager surnamed Chen from Shenzhen Donghai Airlines.

In March, the airlines’ business was basically halted and the company, which has 2,000 employees, faced operation cost challenges.

“We are now able to delay the payments for insurance for three months, so we can temporarily allot around 10 million yuan to our operation,” Chen said.

Nanfang International Talents Science and Technology Co. Ltd. was seriously affected by the pandemic with its nearly 2,000 contracted workers working at schools and hospitals. The company has paid out of its own pocket nearly 3 million yuan to the employees’ salaries because the schools and hospitals delayed their payments.

“Our cash flow is under strain and the delayed social insurance payment is timely support for our enterprise,” said a manager surnamed Liu from the company.

For enterprises retaining their employees, the bureau offered them unemployment insurance refunds, lower unemployment insurance and on-the-job injury insurance rates and reduced the taxation burden for the manufacturing industry.

According to the rule, employers listed in medium and high-risk areas in 2022 or were locked down can apply for delayed payments for their employees’ social insurance, unemployment insurance and on-the-job injury insurance for at least three months. Shenzhen will refund unemployment insurance at 30% of large enterprises’ actual payments for the previous year and 90% of small and micro-sized enterprises’ actual payment for the previous year. The policy will benefit over 800,000 firms and the city will further reduce the payment rates for unemployment insurance and on-the-job injury insurance, as well as implement a floating rate mechanism.

The two measures are expected to relieve enterprises’ burdens by 1.95 billion yuan. The city will also offer certain subsidy amounts to the pension programs of small-sized manufacturing enterprises.