SME Unemployment Insurance Refund

To ensure the operation and reduce the burden of SMEs during the outbreak period, Shanghai Government implements the policy of returning unemployment insurance to eligible SMEs. The application system for returning unemployment insurance has been officially opened to the public.

According to the notice from the local government in Shanghai, Insured enterprises with zero or low layoffs are entitled to refund of at least 50% of the unemployment insurance premiums they paid for the previous one year, Year 2019 from Jan to Dec, upon approval. For small and medium-sized enterprises, the threshold of layoff rate for this policy is extended to “not higher than the target of the unemployment rate control of the national urban survey in the previous year (i.e. 5.5%)”. If there are less than 30 insured employees in an enterprise, the layoff threshold will be extended to “not more than 20% of the total number of employees in the enterprise”.

If your company meets the above requirements, you could apply for the refund from March to December 2020 by yourself or the agent who handles the social insurance. The application of the refund can be submitted on-site or on-line: Once the application is submitted, the refund may reach the company account in one month.