Notice on Adjustment of Employee Medical Insurance Contribution Rates in Xi‘an (2025-2026)

The Xi’an Municipal Medical Security Bureau, Finance Bureau, and Taxation Bureau have jointly issued Document No. 34 (2025), announcing a phased reduction in the employer contribution rate for the Employee Basic Medical Insurance scheme. This policy aims to lower labor costs for enterprises while ensuring that employee medical insurance benefits remain unaffected. The following is a summary of the key adjustments for reference by corporate managers and HR professionals.

Policy Applicability

• All employers within the jurisdiction of Xi’an City, including enterprises, individually-owned businesses, social organizations, and government institutions.

• Flexible employment personnel participating in the Employee Medical Insurance scheme in Xi’an.

  
  

Details of Contribution Rate Adjustment

1. For Employers

• Employer Contribution: The total contribution rate has been reduced from 8% to 7% (comprising 6% for Employee Basic Medical Insurance and 1% for Maternity Insurance).

• Employee Contribution: Remains unchanged at 2% of the individual’s contribution base.

• Effective Period: From December 1, 2025, to November 30, 2026 (12 months).

2. For Flexible Employment Personnel

• The total contribution rate has been reduced from 9% to 8%.

• Effective Period: From January 1, 2026, to December 31, 2026 (12 months).

  
  

Key Points

• Benefits Unchanged: This adjustment involves only a rate reduction. All medical insurance (including maternity insurance) benefits and reimbursement standards for insured individuals remain unchanged.

• Processing Obligation: Employers must continue to fulfill their legal obligation to withhold and remit employees’ individual medical insurance contributions, ensuring continuity of coverage.

• Policy Reference: It is recommended that relevant personnel consult the official text of Document No. 34 (2025) published on the website of the Xi’an Municipal Medical Security Bureau for complete information.

  
  

Impact on Enterprises

This policy will directly reduce employers’ social security expenditures related to medical insurance, aiding in alleviating operational cost pressures. It is advised that corporate HR and finance departments promptly update their contribution calculation parameters to ensure accurate implementation of the new rates within the specified timeframe.

Should you require further understanding of how this policy applies specifically to your company’s compensation and benefits administration, or seek compliant HR solutions in the Chinese market, we are available to provide professional support.