In order to actively respond to the impact of COVID-19 lockdown measures, which have had an impact on the economic development of the city, Shanghai Municipal Government has made the decision to help enterprises stabilize and promote employment in seven key industries that have been seriously affected by the pandemic.

In relation to employment subsidies granted to employers to cope with the impact of the pandemic, the specific conditions are as follows:

I. Subsidies for employment stabilization for enterprises in industries severely affected by the pandemic

Enterprises in catering, retail, tourism, transportation, culture and entertainment, hospitality and the exhibition industries that haven't laid off employees or kept their layoff rate within the national target for unemployment control rate established last year (5.5 percent), will enjoy employment-related subsidies.

Calculated on the basis of the number of urban employees who should have paid social insurance in the previous month at the time of the enterprise's application, each enterprise can apply for 600 RMB of subsidy per employee and receive up to RMB 3 million.

Applications for the subsidies is limited to one application and should be submitted to employment service organizations in the district the enterprises are located in before December 31^st, 2022.

An online application platform is being developed and will be launched soon. In any case, the application will be examined within 15 working days and the subsidy funds will be allocated to the enterprise's social insurance contribution account or the bank account designated by the enterprise within 10 working days.

II. One-time employment subsidy for employers hiring staff from key groups

From March 1^st to December 31^st, 2022, enterprises and social organizations can also receive subsidies for employing people who have registered for unemployment for more than three months, or fresh college graduates.

They may also receive a 2,000 RMB 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.

For this subsidy, beneficiaries do not have to submit any application; in fact, it is the authorities who will verify the employment information through social security and pay the subsidies into the social security accounts of the enterprises.

The city also encourages district Governments to provide subsidies for other businesses and persons affected by the pandemic in their area.

At PHC Advisory, our team is constantly monitoring the most recent incentives and subsidies accessible to businesses in China. Feel free to reach out to us at info@phcadvisory.com to find out more about the preferential policies in China that your company could benefit from.