1. Purpose and object of the collection
   
   Disabled employment security fund is a governmental fund collected from employers to support the development of undertakings for people with disabilities. The fund is collected to protect the interests of disabled people and to promote their employment, which shall be paid by the government authorities, organizations, enterprises, public institutions and private non-enterprise organizations who fail to arrange employment for disabled people according to provisions.
   
   
2. Declaration and payment period
   
   

   (1)	Declate and pay annually. Employers shall declare and pay disabled employment security fund from June 1st to 30th every year.
   (2)	Declare and pay quarterly. Employers shall declare and pay disabled employment security fund within 15 days after the end of every quarter (holidays extended). The amount of payment is one quarter of the annual declaration.

   
   Note: Enterprise who has tight cashflow to proceed annual payment can apply to the competent tax authorities for quarterly payment.Note: Enterprise who has tight cashflow to proceed annual payment can apply to the competent tax authorities for quarterly payment.Note: Enterprise who has tight cashflow to proceed annual payment can apply to the competent tax authorities for quarterly payment.
   
   
3. Calculation method
   
   Employers shall pay disabled employment security fund if they fail to employ the disabled according to prescribed proportion, the calculation formula is as follows:
   
   Disabled employment security fund payable = (The number of employees of the last year * corresponding proportion – the actual number of disabled people employed in the previous year) * The total salary for emplyees in last year / the total number of employees in last year
   
   Note: The proportion is varies in different cities, please consult local tax authorities for more detailed information.
   
   
4. Preferential policy
   
   

   (1)	From 1st April 2018, the upper limit of the disabled employment security fund is reduced from three times of local average salary to two times.
   (2)	From 1st January 2020, enterprises with less than 30 employees is exempted from paying the disabled employment security fund.
   (3)	From 1st January 2020 to 31st December 2022, employer shall pay 50% of the fund payable if the employment proportion of the disabled reaches 1% (or above) but under the proportion prescribed by local government of province, autonomous region and municipaltity. Employer shall pay 90% of the fund payable if the proportion of disabled employment is under 1%.

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