China's cabinet on Wednesday decided to cut certain insurance rates to ease the financial burden on employers and create jobs.

From Oct. 1, the average insurance rate for employment injuries will go down from 1 percent to 0.75 percent, said a statement released after an executive meeting of the State Council, presided over by Premier Li Keqiang.

The top rate for birth insurance will go down from 1 percent to 0.5 percent.

The measures are expected to save 27 billion yuan (4.43 billion U.S. dollars) for employers, the statement said.

The cabinet announced it would establish a "China insurance investment fund" to bolster the real economy.

The fund, which will be around 300 billion yuan, will mainly use capital from insurance institutions to support strategic projects like substandard housing renovation, urban infrastructure, water conservation projects, traffic measures in central and western China, and the Belt and Road initiative.