The Ministry of Human Resources and Social Security (MOHRSS), in collaboration with the Ministry of Finance and the State Taxation Administration, recently issued the Circular on Extending the Favorable Unemployment Insurance Policies to Support Enterprises in Stabilizing Employment.
According to the Circular, China will extend three key policies aimed at assisting businesses and residents. To alleviate burdens on businesses and stabilize employment, the government will maintain the reduced unemployment insurance premium rate of 1 percent until the end of 2025. Additionally, the policy of refunding unemployment insurance premiums to enterprises that minimize layoffs or avoid them altogether will be extended until the end of 2024. Specifically, small and medium-sized enterprises will be eligible for refunds of up to 60 percent of the unemployment insurance premiums paid by both the enterprises and their employees in the previous year. Large enterprises will be eligible for refunds of up to 30 percent.
The scope of these funds has been broadened to help enterprises reduce production and operational costs. These policies are also applicable to social groups, foundations, social service agencies, law firms, accounting firms, and self-employed businesses participating in social insurance.
To further support enterprises in enhancing employee skills, the government will continue to facilitate the subsidy policy for skill improvement and expand its application. Subsidies will be provided to employees who have participated in the insurance for one year and obtained vocational qualification or technical grade certificates, as well as to those receiving unemployment insurance benefits.
