Update: Retroactive Period for Periodical Deferral of Social Insurancerussonxiao
Previously on 13th June 2022, the Shanghai Municipal Bureau of Human Resources and Social Security and five other departments issued a Notice to expand the scope and extend the period of implementation of the deferred payment policy. You may find the details in our article: https://www.serviceonnewgrounds.com/social-insurance-periodical-deferral-2022/
On 3rd November 2022, according to the relevant national regulations, the Shanghai Municipal Bureau of Human Resources and Social Security, and five other departments jointly issued another notice, named «Notice on Further Improving the Implementation of the City’s Phased Moratorium on Social Insurance Premiums Policy», adjusting the retroactive period for the social insurance that has been deferred by employers. This notice shall take effect from this date and shall be valid until 31st December 2023.
The Notice specifies that employers who have deferred the payment of social insurance in accordance with the relevant provisions of the State and the City may make up the deferred social insurance, either in installments (full months) or on a monthly basis, by the end of 2023 after the expiration of the deferred payment period. In accordance with the relevant policies of medical insurance, the employer who has deferred payment of basic medical insurance (including maternity insurance) for employees in the form of a no-application-as-you-go basis, the period of retroactive payment of contribution shall be implemented with the same standard.
Proof of payment
The Notice requires that the social security agencies in providing social insurances query, issuing proof of payment, the employer in accordance with the policy provisions of the deferred payment, and the period of retroactive payment is recognized as normal payment status.
During the period of deferred payment, the employer fulfills the obligation of withholding and paying the employees’ individual contributions in accordance with the law, and the status of the employees’ individual contributions is recognized as normal contributions.
At the same time, social insurance should take the initiative to cooperate with relevant departments to properly deal with the issue of policy convergence with the employee’s settlement, house purchase, car purchase and children’s school eligibility.
Continuous of application
The Notice stipulates that during the deferment period, eligible employers may continue to apply for deferment of social insurance in accordance with the regulations, and the months prior to the application will no longer be retroactive.
Such a policy, based on the implementation of a phased suspension of social insurance policies, can promote the protection of market players and further safeguard employment and people’s livelihood.
However, no specific operational procedures have been introduced yet, and the Social Security Bureau has been mostly cross-checked by the Tax Bureau. If you have applied for a deferment, please stay tuned for further information.
Should you have any questions, please feel free to contact us.
Notice on Further Improving the Implementation of the City’s Phased Moratorium on Social Insurance Premiums Policy