For the purpose of giving scope to the functions of social insurance, easing the burden of enterprises, stabilising the employment situation and actively coping with the global financial crisis, the social security bureau, labour bureau, finance bureau and local taxation bureau of Dongguan jointly issued a circular on certain questions concerning bringing the functions of social insurance into play, supporting enterprises in their development and actively coping with the global financial crisis. The following are the main points of this circular: 

I. Lower the rate of social insurance premiums

(1) Lower the rate of work injury insurance premiums. From 1 March 2009 to 31 December 2009, the premium rate of all kinds of work injury insurance will be slashed by 20% across the board.

(2) Lower the rate of medical insurance premiums. From 1 March 2009 to 31 December 2009, the premium rate of units employing urban workers who have joined social basic medical insurance programmes will be slashed by 5% across the board. 

II. Allow enterprises in difficulty to defer payment of social insurance premiums for a certain period of time

Enterprises deemed to be in difficulty and cannot pay social insurance premiums for the time being will be permitted to defer payment of social insurance premiums for a certain period of time. The implementation period for deferring payment is between January and June 2009 when the premiums are due, and payment may not be deferred for more than six months. 

III. Expand the scope of using unemployment insurance fund to help enterprises in difficulty save jobs

For enterprises in difficulty that took measures to reassure their staff of stable employment and promise not to lay off workers or to cut fewer jobs, the unemployment insurance fund will pay social insurance premium subsidies, job post subsidies and on-the-job skill training subsidies on their behalf.

(1) The standard for social insurance premium subsidies shall be calculated on the basis of the sum of the pension, unemployment, medical and work injury insurance premiums paid by enterprises for their workers;

(2) Standard job post subsidies are paid at Rmb165 per person; and

(3) On-the-job skill training subsidies amount to 50% of workers' training expenses.