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Economy to good 'stumbling block.' For a large number of SMEs, high pension rates make them caught in a dilemma - evasion is illegal, we are unable to explain to employees; if the required payment, the high labor costs that they can not bear its burden . From the current situation, due to the deterioration of the situation of many provinces pension payments, reduced rates will inevitably exacerbate imbalances Fund. Pension rates under highly difficult living roots of outstanding government restructuring costs and system maintenance rate soared, the next step if it were allocated to state-owned assets, a strong national pension reforms and other co-ordination, reduced pension rates fear falter . 'Five dangerous' rates nearly forty percent of total wages Chinese social security system is mainly composed of 'insurance policy' component. Among them, the total rate of pension of 28% (unit pay 20% of individual contributions of 8%), medical insurance 8% (6% contribution units, individual contributions of 2%), unemployment insurance rate of 2% (the proportion of individual units from the provinces set ), work injury insurance and maternity insurance contributions by the individual units do not pay, work injury insurance the average rate was 0.75% and the average rate of maternity insurance is not more than 0.5%. This calculation, in most of the country, 'five insurance' total corporate rate has reached 39.25% of total wages. Among them, the burden on enterprises was 28.25%, the personal burden of 11%. System costly, hindering private enterprise and technology business innovation. In recent years, entrepreneurs reflect the problem of high rates of social security to decision-making through different channels. New Oriental Michael Yu, chairman of the proposal 'two sessions' during this year pointed out that China's current social security contributions benchmark too high, and the payment reference rigid growth throughout the year more than 10%, more than most corporate earnings growth. Mr Yu is recommended to reduce corporate and individual social security rates, in particular, accounted for a 'big' endowment insurance rates should be moderately reduced as soon as possible, to prevent the payment standard is too high lead to 'Banded' phenomenon. TCL chairman Li Dongsheng three numbers during the two sessions this year given on wages: workers pretax wage of 3,000 yuan, 2550 yuan actual hand, and their actual pay is 3800 yuan. It is counted, the rest to pay the 'insurance policy.' This means that companies pay a dollar each, workers only