BEIJING - China will further reduce the burden on individuals and enterprises by cutting their payment to the social security funds, according to a government meeting on Wednesday.

The required contribution rates of the pension insurance, unemployment insurance and housing provident funds will be lowered in a two-year period starting on May 1, said a statement issued after the State Council meeting presided over by Premier Li Keqiang.

The new policy aims to relieve corporate burden and increase workers' cash income.

The government estimated companies across the country can save a total of over 100 billion yuan ($15.48 billion) each year.

Under the policy, enterprises that contribute more than 20 percent of the pension insurance payment can reduce the rate to 20 percent, while those in provinces that see sufficient funds can lower the rate to 19 percent.

In addition, the rate of the unemployment insurance will range between 1 percent and 1.5 percent, down from the current 2 percent, and that of housing provident funds should stay below 12 percent.