Beijing companies can cut social security, freeze minimum wages

Companies in Beijing will be allowed to cut their contributions to employee social insurance funds in 2009, and the minimum salary will not be increased.

According to an official government news portal, the Ministry of Human Resources and Social Security has told Beijing that companies there should suspend minimum wage adjustments from early in 2009. The Beijing Bureau of Labor and Social Security has also announced that employer and employee contribution rates for funds including medical insurance, unemployment insurance and work-related injury insurance will be reduced.