Social Insurance and Housing Fund: Latest Updates
From the perspective of not increasing the burden on enterprises, helping enterprises to tide over the difficulties of the epidemic, and conducive to economic recovery, in accordance with the “Law of the People’s Republic of China on the Protection of Disabled Persons” and relevant regulations and implementation measures, relevant departments in Shanghai revised on 18th of August, 2020 of the ” Implementation Measures for the Administration of the Collection and Use of the Disabled Employment Fund in Shanghai”.
What is the “Disable Employment Fund”?
To ensure the rights and interests of the disabled and improve the employment of the disabled, enterprises without the arrangement for the disabled should pay relevant Disabled Employment Fund (hereinafter as Fund).
Why should enterprises pay such Fund?
The Disabled are a special group in need of care and assistance from society as a whole. The Fund is to enable employers to fulfill their due responsibilities and obligations equally. The purpose of the funds is to guide, encourage, and urge employers to recruit more disabled persons, so as to better protect the rights and interests of them.
Who can be exempted from the Fund?
According to the implementation measures, below are the policies and new standards:
1. The payable Fund in the current year is based on the statistical data of the previous calendar year and payment for once a year.
2. The validation for the new standards is valid from three years: September 1st, 2020 to August 31st, 2023.
3. For small and micro enterprises with a total of 30 employees or less (inclusive) in the previous calendar year, the fund is temporarily exempted.
4. For small and micro enterprises with a total of 30 employees and above in the previous calendar year, the calculation of the Fund is:
- If the Ratio[1] is over (equals to) 1%, then
Fund = Base[2] * (1.5% – Ratio) * 50%
- If the Ratio is below 1%, then
Fund = Base * (1.5% – Ratio) * 90%
i.e. The more disabled employees recruited, the less Fund shall be paid.
5. The upper limit of the Fund is 2 times the society average wage[3] in Shanghai in the previous calendar year.
Remember to submit an application to the Service Center for the Disabled if any recruitment happened in the previous calendar year.
Please enter the official website http://www.shdpf.org.cn/xbjyzx/xbjyzx/ for more information.
[1] The Ratio refers to the ratio of the average number of disabled employees arranged by the enterprises to the average employees of the enterprises, in the previous calendar year.
[2] The Base refers to the total amount of employees’ social contribution base, in the previous calendar year.
[3] The society average wage in Shanghai for YR 2019 is CNY 9580/Month.
