(Yicai Global) March 31 -- China is keeping the rates on unemployment insurance and employment injury insurance low in order to cut costs for all businesses and help them out of their current difficulties, particularly individual-run and smaller companies, an official at the Ministry of Human Resources and Social Security said today.

By extending the current low rates, which had been due to expire at the end of April, China will save businesses an estimated CNY180 billion (USD23 billion) in insurance costs as year, said Gui Zhen, head of the MHRSS’ unemployment insurance division.

China has trimmed unemployment insurance premiums to 1 percent of an employee’s monthly salary from 3 percent since 2015. Local governments are also allowed to lower the employment injury insurance premium depending on their annual budgets.

There will still be adequate funds to cover any claims on the country’s unemployment and injury insurances, Gui said. Even though the rates are staying low, governments at all levels should ensure that the jobless and the injured receive full compensation, she said.

China saved a total of CNY8.2 trillion (USD1.2 trillion) in taxes and fees over the past five years thanks to tax waivers, reductions and refunds, according to data from State Taxation Administration.

The State Council extended the low premiums until the end of 2024 at a meeting on March 24, and has said that the country will keep working on preferential tax policies this year.

Editors: Dou Shicong, Kim Taylor