China: Shanghai: Issued Circular on Implementing Social Insurance Subsidies for Employers During Maternity Leave and Additional Childcare Leave for Female Employees
On August 8, five departments including the Shanghai Municipal Human Resources and Social Security Bureau officially issued the Circular on Implementing Social Insurance Subsidies for Employers During Maternity Leave and Additional Childcare Leave for Female Employees (the “Circular”) introducing a significant new policy to support childbirth.
The policy aims to establish a cost-sharing mechanism for childbirth expenses involving the government, society, and employers, further reinforcing the value orientation of “fertility-friendly.” Through the coordinated policies of “Fertility-Friendly Positions” and “Social Insurance Subsidies for Maternity Leave” the Circular seeks to eliminate barriers to women’s employment to the greatest extent and promote high-quality, full employment for women.
According to the Circular, effective January 1, 2025, employers become eligible to apply for social insurance subsidies during maternity and childcare leave if their female employees give birth while employed, provided the employers have lawfully granted the required leave and maintained social insurance contributions. The subsidy will cover 50% of the employer’s actual contributions to the employee’s basic pension insurance, basic medical insurance (including maternity insurance), unemployment insurance, and work-related injury insurance during the leave period, and will be disbursed for six consecutive months starting from the month of childbirth.
Key Action Points
The Circular aims to establish a mechanism for sharing childbearing costs involving the government, society, and enterprises, so as to change the previous situation where enterprises alone bore most of the costs, and reduce the burden of childbearing costs on enterprises. The policy is conducive to stabilizing women’s employment and creating a more equitable employment environment for women. For employers, the subsidy funds can, to a certain extent, make up for the increased costs caused by employees’ leave and ease their financial pressure. At the same time, the policy requires employers to truthfully pay social insurance premiums and strictly manage the distribution of subsidy funds, aiming to standardize enterprises’ employment practices and urge them to attach greater importance to the implementation of labour laws and regulations such as social insurance payment. In addition, the policy encourages employers to set up “Fertility-Friendly Positions” for female employees returning to work after childbirth. If employers can actively respond to the policy, it can enhance their social reputation and attraction to talent.
