Government measures in key jurisdictions 3rd edition final - Flipbook - Page 35
Che Hu | cheh@junhe.com | +86 10 8553 7662
Janet Hui | xurr@junhe.com | +86 10 8519 1280
Loans and
financial
support
Has the
government put in
place any new
bank funding
schemes?
Employment
What financial
support is
the government
providing to
individuals on
employment issues?
•
In February, a government policy is announced to strengthen financial support to
enterprises. The central government will subsidize the interest payment of key enterprises
engaged in epidemic containment.
•
Financial institutions are asked to refrain from arbitrary withdrawing, cutting or delaying loans that
are issued to severely affected industries, (e.g., wholesale and retail) and enterprises that are
otherwise performing well but are under temporary difficulties due to the epidemic, and small and
micro enterprises inparticular.
•
For enterprises that cannot repay loans on time due to severe impact by the epidemic, loans can be
extended or renewed. Meanwhile, measures are taken to lower lending rates and increase
unsecured loans and medium and long-term loans to help enterprises handle the impact of the
epidemic.
The Standing Committee of the State Council on February 18, 2020 adopted national policies to reduce
the financial impact of the epidemic on employers as well as to help stabilize employment. Among the
policies are the reduction of employer social insurance contributions and the delay of housing fund
contributions. The policies have gradually been implemented by national and local notices and policies.
On February 20, 2020, the Ministry of Human Resources and Social Security, together with the Ministry of
Finance and the State Taxation Administration announced the following.
•
From February 2020, provinces may exempt small and medium-sized enterprises for up to five months
from paying the employer portion of contributions for pension, unemployment, and occupational
injury insurance.
•
Provinces may reduce by 50% the employer contributions for pension, unemployment, and occupational
injury insurance for large enterprises for up to three months.
•
Hubei province may exempt all employers from paying the employer contributions for pension,
unemployment, and occupational injury insurance for up to five months.
•
All employers that suffer serious difficulties in production and operation due to the outbreak may
apply for deferred payment of contributions for all five types of social insurance for up to six months.
Approved employers would not be liable for late payment fees.
Further employment policies issued relating Covid-19 epidemic.
On June 22, 2020, the Ministry of Human Resources and Social Security, together with the Ministry of
Finance and the State Taxation Administration extended the policy announced on February 20, 2020:
•
Provinces may exempt small and medium-sized enterprises from paying the employer portion of
contributions for pension, unemployment, and occupational injury insurance until the end of December
2020.
•
Provinces may reduce by 50% the employer contributions for pension, unemployment, and
occupational injury insurance for large enterprises till the end of June 2020.
•
All employers that suffer serious difficulties in production and operation due to the outbreak may
apply for deferred payment of contributions for all five types of social insurance until the end of
December 2020. Approved employers would not be liable for late payment fees.
Government measures in key jurisdictions
35