Notice of the Guangdong Provincial People's Government on several policy measures for further promoting employment in Guangdong Province (Yuefu  No.114)
30 November 2018
On 30 November 2018, the Guangdong Provincial People's Government issued the "Several Policy Measures for Further Promoting Employment in Guangdong Province". The main measures include reducing the rate of basic medical insurance contributions for employers, granting employment referral subsidies, subsidizing small and medium-sized enterprises to increase employment, and promoting the construction of the Greater Bay Area as an innovation and entrepreneurship incubator.
The People's Government of Guangdong Province released a circular on "Certain Policy Measures for Further Promoting Employment in Guangdong Province" ("the Measures") on 30 November 2018, which includes 9 measures on promoting employment. The main measures are as follows:
Stability measures to moderately reduce costs such as social security
- The standard unemployment insurance premium rate remains at 1% till the end of 2020.
- After deducting a one-off prepaid medical insurance fee, employers could enjoy a lower premium rate on the accumulated balance of the basic medical insurance pooling fund. The premium rate will be gradually reduced by no less than 0.5% over no less than 9 month-instalments, and is valid up to the end of 2020.
Further reducing enterprise recruitment expenses
- To organise no less than 200 activities per year across the Guangdong province for promoting contact between enterprises and workers.
- To actively nurture the human resources industry, and offering awards of RMB 2 million and RMB 1 million to significant contributors in promoting the employment and entrepreneurship at the national and provincial levels respectively.
Strengthening efforts in key industries
- To organise no less than 200 career fairs per year for key industries across the Guangdong province.
- Offering subsidies of RMB 400 per referral from the employment subsidy fund to human resource agencies who have referred employees to key industry enterprises, provided that those employees have stable employments and have made social security contributions of at least 6 months.
Actively supporting the employment of small and medium enterprises
- Extending the subsidy period to small and medium enterprises for employing higher education graduates to 2 years.
- Offering employment subsidies to small and medium enterprises registered within the first 3 years according to the number of employees recruited.
- Supporting employment in the household management industry, and offering subsidies to employers of up to 50% of their social security contributions made on behalf of employees.
Further encouraging entrepreneurship to drive employment
- Offering up to RMB 300,000 grant loans to eligible entrepreneurs for a maximum of 3 years.
- Partnerships or small enterprises may be offered securitised loans of up to RMB 300,000 and RMB 3 million respectively.
- Offering up to RMB 5 million grant loans to eligible labour-intensive and technological small and medium enterprises.
- Promoting the construction of the Greater Bay Area as an innovation and entrepreneurship incubator.
- Offering one-off subsidies of RMB 100,000 for each base in every city.
Besides, the Measures suggest offering subsidies to higher education graduates, exploring options to implement and promote technical skill training programmes, offering unemployment insurance rebates to enterprises with no or few layoffs, as well as offering employment and temporary living subsidies to those facing employment difficulty.