Three departments, including the Ministry of Human Resources and Social Security (MOHRSS), have jointly released the Circular on Extending the Unemployment Insurance Policies for Supporting Enterprises and Stabilizing Jobs (the "Circular").
The Circular introduces a package of phased and combined unemployment insurance policies and measures to support enterprises and stabilize jobs. It extends the policy of reducing unemployment insurance contribution rate to 1% to the end of 2025, and continuously implements the refund policy for job stabilization by the end of 2024 for enterprises joining the social insurance scheme, provided that they do not lay off their employees or reduce layoffs. According to the Circular, regarding the refund policy for job stabilization, medium, small and micro enterprises shall be refunded no more than 60% of the unemployment insurance premiums actually paid by themselves and their employees in the preceding year, and the refund rate for large enterprises shall be no more than 30%; the use of funds will be expanded from the current four expenditures for job stabilization to cover the expenditures for production and operation cost reduction. The Circular shall be applicable to social groups, foundations, social service agencies, law firms, accounting firms, and individual businesses joining the insurance scheme as enterprise mutatis mutandis.