Companies can delay contributions to pension funds and reduce the rates of various kinds of employee insurance, the government said yesterday, in a bid to stem mounting job losses across various sectors as the global downturn bites into the Chinese economy.

"Companies are expected to pay hundreds of billions of yuan less in insurance and pension payments while tens of millions of jobs can be secured," three key ministries said in a statement yesterday, without providing detailed figures.

"The rates of basic medical, unemployment, workplace injury and maternity insurance for urban residents can be reduced (in some areas) by a proper margin for a maximum of 12 months" next year, they said.