Reducing the enterprise pension insurance premium rate is an important part of the “tax reduction” policy. China launched the policy of “Comprehensive Program for Reducing Social Insurance Premium Rates” in 2019, and this paper examines the impact of the implementation of this policy on the employment scale of enterprises through the double-difference model based on the data of A-share listed companies in 2014-2022. It is found that the fee reduction policy has a significant positive impact on the employment scale of enterprises in general, which increases the employment scale of enterprises by 2. 6%, and this result still holds after the robustness test and endogeneity discussion. In addition, the policy effect of this fee reduction shows significant firm heterogeneity, which is more conducive to the expansion of the employment scale of manufacturing firms as well as non-state-owned firms. The analysis of the impact mechanism shows that the pension insurance premium reduction policy affects the employment scale of enterprises through the cash flow effect and the factor substitution effect.