New incentives to get people hired
SHANGHAI government has raised subsidies for enterprises to encourage them to hire people who want to work but who have been unable to find a job for at least six months.
Besides the disabled, families where no one is employed, former prisoners and ex-drug abusers, three more categories were added to "people with employment difficulties" recognized by the human resources and social security bureau.
These are for members of families containing several disabled people, women aged over 40 and men over 45, whose land has been requisitioned, and people younger than 35, who have been unemployed for more than a year despite being recommended to employers by public employment service organizations.
Previously, an employer received 16,000 yuan (US$2,320) a year for hiring people with employment difficulties. From now, the subsidies will include 50 percent of the city's lowest pay level set by the government and part of the social security fees the company is required to pay the employee.
According to the current local pay level, the employer will get 19,800 yuan a year for hiring each citizen with employment difficulties.
Subsidies will be adjusted as the lowest pay level and social security fee standards change.
People recognized as having difficulties in finding work will also receive subsidies for social security fees.
Unemployed people outside those in the employment difficulties category can also apply for a special program if they are willing to work in designated sectors, such as greenery, property management and senior citizen caring. This year, mail and delivery service, as well as maintenance of river, pipelines and road are also included in the program.
Employers in these sectors can receive 50 percent of the lowest pay for hiring each person included in the program.
As the current lowest pay level set by the government is 2,190 yuan a month, the new subsidy is much higher than the original level that was set at 800 yuan per month.
The subsidies are provided for three years in total per person.
Authorities said they were not afraid that companies might fire the "difficult"employees after three years as many people on the programs had proved their worth to their employers, who wanted to keep them on as a result.