Shenzhen has recently announced the deferral of social insurance premium payments for more businesses impacted by the COVID-19 pandemic, as part of the city’s efforts to further alleviate the financial burden on certain industries, Shenzhen Special Zone Daily reported.
Companies in 22 pandemic-stricken sectors will be able to defer payments of the three basic social insurance premiums: pension insurance, unemployment insurance, and work-related injury insurance.
Shenzhen authorities unveiled a raft of 30 relief measures March 24. The policy related to the deferred payment of social insurance premiums has been implemented for companies in five sectors that have been more exposed to the pandemic, namely catering, retail, tourism, civil aviation, and road, water and railway transportation.
The newly released measure will be expanded to an additional 17 pandemic-hit industries, covering general equipment manufacturing, automotive manufacturing, pharmaceutical manufacturing, and apparatus and measuring instrument manufacturing, among others.
Firms in the five sectors that have been more seriously affected can defer pension insurance contributions between April and December this year, while their payments for unemployment and work-related injury insurance between April 2022 and March 2023 can be deferred.
Companies in the additional 17 COVID-affected industries can benefit from the deferred payments starting this month.
Eligible employers can make an application via the “深i企” platform, as well as the online service system and offline service centers of the Shenzhen Municipal Human Resources and Social Security Bureau. The due date is Dec. 31 this year for the application of pension insurance, and March 31, 2023 for the unemployment and work-related injury insurances.
All pension insurances must be paid by June 30, 2023 and the payment deadline for unemployment and work-related injury insurances is April 30, 2023, according to the bureau.
During the payment extension period, late payment penalties will be waived and unfavorable personal benefit records will be exempted.
Official data showed that over 80,000 enterprises in Shenzhen applied to defer paying social security contributions since the policy was introduced at the end of April. The policy is expected to relieve their cash flow pressure by over 5 billion yuan (US$763.7 million).