The Ministry of Human Resources and Social Security, together with the Ministry of Finance, National Development and Reform Commission and the Ministry of Industry and Information Technology, have produced a circular designed to motivate employers to increase their efforts in social responsibility and to stabilise employment. Under the circular, which was issued in early November 2014, China's unemployment insurance scheme will provide 'post-stabilising subsidies' to enterprises which take effective measures to avoid or reduce redundancy and ensure stable employment. The policy applies to enterprises undertaking mergers and acquisitions, seeking to deal with excess production capacity, shutting down due to insufficient productivity and those approved by the State Council.
The subsidies will be paid at a rate of 50% or less of the unemployment insurance fee actually contributed by the enterprise and its employees in the preceding year to the unemployment insurance fund. The circular will be gradually implemented between now and 2020.