So far in the PRC, varieties of the policies and schemes are published at both state and local levels for the purpose of stabilizing employment relationships and reducing employers’ labour cost burdens during the COVID-19 crisis.
From the employees’ perspective, the most essential benefit is to guarantee their salary payments during the corresponding period. Employees who are patients, suspected patients or close contacts of COVID-19 and those blocked and unable to return to work because of emergency measures taken by the government enjoy normal salary payments during the corresponding medical treatment period, medical observation period and the blocked period.
From the employers’ perspective, there are some favourable policies at state level concerning social insurance and housing fund contribution as well as other subsidies that are issued by the Government for employers:
- As from February 2020, medium, small and micro-sized companies in all the locations can be exempted from the payment of social insurance premiums payable by the employer for the basic pension, unemployment insurance and work-related injury insurance depending on the impact of the epidemic situation and fund affordability in the location for a period of no more than 5 months. The above-mentioned policies apply to all companies located in Hubei Province regardless of the company scales. In the locations other than Hubei Province, big companies can be exempted from paying 50% of the social insurance premiums payable by the employer for the basic pension, unemployment insurance and work-related injury insurance for a period of no more than 3 months.
- As from February 2020, companies in all locations can be exempted from the payment of 50% of the social insurance premiums payable by the employer for the basic medical insurance depending on the actual situation and fund affordability in the location for a period of no more than 5 months.
- Companies suffering from operational difficulties due to the epidemic can apply for deferred payment of social insurance premiums for no more than 6 months in principle without paying late payment penalties.
- Companies affected by COVID-19 can apply to defer payment of housing fund contributions for 6 months (from January to June) without paying late payment penalties.
- Companies providing either off-line or online occupational trainings to employees during the periods of stopped work and operation resumption can enjoy training subsidies.
- If a company meets some requirements including having duly paid the unemployment insurance premium according to law in the past, and its lay-off rate in the previous year is lower than the urban unemployment rate of the location where the company is located, the company can receive subsidies from the government for stabilizing the employment relationships. The amount of the subsidy varies with location, for example in Shanghai, it is 50% of the unemployment insurance premium paid by the company and the employees in the past year.
The above state policies are applied nationwide while each location may issue their specific implementation measures. In some locations such as Shanghai, Chongqing, Shenzhen, Guangzhou, Wuxi, Hangzhou, etc., further additional favourable policies, such as reducing the contribution rate of social insurance and the housing fund, postponing the adjustment date of the social insurance contribution base, and providing special subsidies, have been introduced for the benefit of employers. The effectiveness terms of such policies are subject to the corresponding local policies.
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