You Jun, vice-minister of the Ministry of Human Resource and Social Security, said at a news conference on Monday that China will gradually reduce the pension insurance premium rate paid by enterprises, but this will not influence the normal operation of social security fund or people's pensions.

According to You, China has reduced the social insurance premium rate four times over the past three years, with the overall social insurance premium rate reduced from 41 percent to 37.25 percent.

In 2016, China reduced the pension insurance premium rate paid by the enterprises from 20 percent to 19 percent, which was due to expire on April 30. The government has decided to continue to implement this policy up to April 30, 2019. A move that is expected to reduce the burden on enterprises by 54 billion yuan (8.57 billion) in total.

Experts said that reducing the pension insurance premium rate paid by the enterprises is a significant supply side structural reform measure, which is crucial for high-quality development.