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I. Job Stabilization Rebate Policy
Enterprises participating in the insurance program are eligible for the job stabilization rebate policy in Shanghai if they have the following conditions:
(i) Participated in unemployment insurance in accordance with the law and paid the required unemployment insurance premiums in FY2023.
(ii) The redundancy rate is no higher than the control target of the national urban survey unemployment rate for the previous year (5.5%), and the redundancy rate for enterprises with 30 or fewer employees is no higher than 20%.
II. Criteria for the Rebate of Unemployment Insurance
For eligible employers, large enterprises will be refunded 30% of the total amount of unemployment insurance premiums actually paid by the enterprise and its employees in FY2023, and employers such as small, medium and micro enterprises will be refunded at 60%.
III. Calculation of Redundancy Rates
(i) For employers with more than one year of social insurance participation and contributions in 2023, the layoff rate = 1 – (number of unemployed insurance participants in December 2023 + number of attrition participants in 2023) / number of unemployed insurance participants in December 2022.
(ii) For employers with less than one year of social insurance participation and contributions in 2023, the layoff rate = 1 – (number of unemployment insurance participants in December 2023 + number of attrition participants in 2023) / number of participants in the first month of 2023 unemployment insurance participation.
Among these, the number of attrition refers to the number of employees who retired or died.
At PHC Advisory, we can offer you full support on matters regarding doing business in China, or any other issues your business may face. If you would like to know more about policies relevant to your business in Italy or Asia, please contact us at info@phcadvisory.com.
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The content of this article is provided for informational purposes only, financial advice must be tailored to the specific circumstances on a case-by-case basis, and the contents of this article do not legally bind PHC Advisory with the reader in any way.
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