Policy Content

According to the “Announcement on Continuing to Implement Preferential Policies for Disabled Employment Security Fund”, starting from January 1, 2023, until December 31, 2027:

● The graded reduction of the disabled employment security fund will be continued. Specifically, if the ratio of disabled employees arranged by the employer is equal to or above 1%, but below the ratio prescribed by the provincial, autonomous regional, or municipal governments, the employer shall pay 50% of the required amount for the disabled employment security fund. If the ratio of disabled employees arranged by the employer is below 1%, the employer shall pay 90% of the required amount for the disabled employment security fund.

● Enterprises with a workforce of 30 employees or less will continue to be exempt from the disabled employment security fund.

Policy Background

The policy aims to promote the development of small and micro enterprises, further reduce the burden on employers, and improve the disabled employment security fund system.

Collection Policy

The upper limit of the collection standard for the disabled employment security fund is set at twice the local average wage. The local average wage is calculated by weighting the average wages of urban non-private and private employees in the locality.

If an employer accepts disabled employees to work at the employer's premises through labor dispatch in accordance with the law, the number of disabled employees shall be counted as part of the actual number of disabled employees and the number of employees on the payroll of one party after both the labor dispatching unit and the employer agree through negotiation and sign an agreement. The number of disabled employees cannot be counted twice.