Shanghai rolls out subsidies to help industries retain staff

Measures are being taken to lend all possible support to restart the economy

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Shanghai’s latest Action Plan ensures that companies that bore the brunt of the pandemic, especially those in the hospitality, retail and tourism space, are given subsidies to prevent them from laying off employees.

Retail, transport, tourism, catering and hospitality businesses and those involved in exhibitions and events, will benefit from certain subsidies if they retain their employees or do not lay them off.

An amount of not more than $90 per employee and $450,200 per organisation for this purpose will be granted. The amount will be decided basis the number of urban employees for whom the companies have paid social insurance premiums in the month before the application.

Companies can also avail of a one-time subsidy of $300 per individual they employ who has been jobless for more than three months or has graduated from a Shanghai university in 2022. The companies are required to enter into a minimum one-year labour contract with the employees and also pay social insurance premiums in accordance with the law, to be eligible for the subsidy.

Some organisation can also avail tax subsidies of up to $1,170 for each fresher they employ in a year, from the universities of Shanghai, within three years.

Subsidies will also be given to businesses adversely affected by the pandemic if they offer their employees vocational training relevant to their jobs/business. Employers can receive a subsidy of $90 per employee for training, nor more than thrice in 2022.

All unnecessary restrictions that had been imposed on resumption of work and production will also be lifted. June 2022 onwards, no businesses will need to apply for official or formal approval from the authorities to resume work and production. They can restart operations basis the epidemic situation in their respective areas.

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