Recently, the Ministry of Human Resources and Social Security, Ministry of Finance and State Taxation Administration of the PRC have jointly issued the Circular on the Extension of Unemployment Insurance Supporting Policies. The main contents of the circular are as follows:
Reduction of Unemployment Insurance Contribution Rate
The reduction of unemployment insurance contribution rate to 1% is extended for one year, which shall be implemented to 31 December 2025.
Refund of Unemployment Insurance
2.1
Requirements
(1) Have participated in the unemployment insurance schedules and paid up the unemployment insurance premiums in full for at least a 12-month period.
(2) There is no layoff or the layoff rate in the previous year is not higher than the control goal of the national survey unemployment rate of the previous year.
(3) The layoff rate of the enterprise with 30 or less employees shall not exceed 20% of the total number of insured employees.
2.2
Criterion
(1) For Micro Small and Medium Sized Enterprise: Refund no more than 60% of the actual unemployment insurance premiums paid by the enterprise and their employees in the previous year.
(2) For Large Enterprise: Refund no more than 30% of the actual unemployment insurance premiums paid by the enterprise and their employees in the previous year.
2.3
Usage
The refunded unemployment insurance can be used as stable employment expenses such as employees living allowance, payment of social insurance premiums, job transfer training, skill enhancement training, and be used for reducing production and operation costs.
2.4
Implementation Period
The above unemployment insurance refund policy shall be implemented to 31 December 2024.
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