Study On Social Insurance Contribution Rates In China

In recent years, China’s economy has developed rapidly, but the enterprises, especially the private enterprises have become increasingly difficult. In some areas, a number of enterprises closed down, others are struggling. As the economic entities, with the rapid development of the economy, enterprises should also be in a period of rapid growth. While the unprecedented predicament the enterprises are facing worth pondering and analysis.According to the survey reported by National Federation of Enterprises, finance, raw material prices and labor costs are thought to be the major difficulties the enterprises are facing, and social insurance premiums is the cost must be devoted. China’s social insurance contribute rate level has been reported to be the highest in the world. So, what is the current situation of our social insurance contribute rate? How to reduce the cost of social insurance contribute rate?This paper attempts to analysis from an international comparative perspective, the level of social insurance contributions and affordable rate perspective, demonstrate that China’s current rate of social insurance is too high, has already affected the survival and development of labor-intensive enterprises, restricted the enterprises enhance competitiveness, affected the sustainability of the social insurance system; make efforts to explain theoretically, how to determine the appropriate rate of social insurance, try to make a reasonable mathematical model; try to make some policy recommendations.