Henan province has started efforts to mitigate financial burdens by cutting the contributions of both employers and employees to the basic pension insurance and offering more tax cuts and fee reductions as of May 1st.

Among other measures, the corporate contribution rate has fallen to 16 percent from 19 percent. In Nanyang city alone, the moves are expected to save companies and employees by about 350 million yuan ($ 51.61 million) in 2019.

In the past, the base payment of the pension insurance was based on the average salaries of employees in local urban non-private units. Now it is determined based on the average salaries of employees in non-private units and those in the urban private sectors in Henan province.

The move has reasonably cut the base payment for a portion of people and enterprises in the province.