Urumqi enacted a regulation in August saying that companies can henceforth stop paying social insurance for retirees who have already paid the insurance for enough years.

The minimum years of payment required are 25 for males and 20 for females.

The adjustment is to lessen companies’ insurance payment burden to support better business development.

An authority of Urumqi’s municipal human resources and social security bureau said that over 10,000 Urumqi companies have carried out the policy. About 170,000 retirees are involved and the companies concerned will save 300 million yuan ($44 million) each year.

By Qiu Guizhen and edited by Peter Nordinger