Shanghai announces subsidies to help employment

Yang Meiping
Businesses which have contained layoffs or have employed long-term unemployed or fresh college graduates qualify under the scheme to ensure employment stability.
Yang Meiping

Shanghai has announced two measures for alleviating the financial burden on seven key industries seriously affected by the COVID-19 pandemic to ensure employment stability.

Enterprises in catering, retail, tourism, transportation, culture and entertainment, hospitality and the exhibition industries will enjoy employment-related subsidies if they haven't laid off employees or reduced their job cuts last year.

Enterprises that have kept their layoff rate within 5.5 percent, the national target for unemployment rate control last year, can apply for 600 yuan (US$90) of subsidies per employee. Each enterprise can receive up to 3 million yuan.

Applications for the subsidies should be submitted to employment service organizations in the district the enterprises are located in before year-end. An online application platform is being developed and will be launched soon.

Enterprises and social organizations can also receive subsidies for employing people who have registered for unemployment for more than three months, and fresh college graduates.

They can get a 2,000-yuan subsidy for signing a labor contract with each new worker who qualifies under the scheme if they employ them for at least a year and pay their social security premiums.

They don't have to submit applications. The authorities will check the employment and social insurance information and pay the subsidies to the social security accounts of legible enterprises.

The city also encourages district governments to provide subsides for other enterprises and people affected by the pandemic within their area.

Special Reports