Shanghai unveils subsidies to boost employment

08 Jun 2022

Shanghai has unveiled steps to ease the financial burden on seven industries severely impacted by the pandemic, in an attempt to boost employment stability.

The following sectors will benefit from employment-related subsidies, providing they haven’t laid off staff over the last year: catering, retail, tourism, transportation, culture and entertainment, hospitality and the exhibition industries.

Those businesses that have maintained their employment layoff rate at 5.5% - China’s target for unemployment rate control in 2021 – can apply for 600 yuan (US$90) of subsidies per employee. Every company can receive as much as 3 million yuan.

Businesses can submit their application for the subsidies at employment service organisations before the end of the year. An online application platform is set to be launched imminently, reports Shine News.

In addition, businesses and social organisations are eligible to receive grants for employing people who have been registered as unemployed for over three months, as well as college graduates.

Indeed, certain organisations can benefit from tax subsidies of up to $1,170 for every graduate they employ within a year, from the universities of Shanghai, within a period of three years.

They are entitled to a subsidy of 2,000 yuan for signing a contract with each new member of staff who qualifies within the initiative, as long as they are employed for a minimum of 12 months and the company pays their social security premiums. Authorities will verify the social security and employment data and pay the subsidies to the eligible firms.

In addition, Shanghai is urging district governments to provide subsidies for other businesses and people impacted by the Covid crisis in their area.