The General Office of the State Council of the PRC released a circular (Guobanfa [2023] No.11) recently, clarifying that China will continue to implement the unemployment insurance refund policy in 2023.

Enterprises entitled to the unemployment insurance refund shall meet the following requirements:

1. Participate in unemployment insurance in accordance with the law and pay full unemployment insurance premiums;
2. Have not laid off employees in the previous year or the layoff rate is not higher than the control target of the surveyed urban jobless rate in the previous year;
3. The layoff rate of an enterprise with 30 or less employees is not higher than 20% of the total number of insured employees.

The refund rates for 2023 are as follows:

1. Small, Medium and Micro Enterprises: up to 60% of the actual unemployment insurance premiums paid by both the employer and employees in the previous year.
2. Large Enterprises: up to 30% of the actual unemployment insurance premiums paid by both the employer and employees in the previous year.

Social groups, foundations, social service agencies, law firms, accounting firms, and self-employed households that participate unemployment insurance may enjoy the unemployment insurance refund policy with reference to the above rules.

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