Guangdong province has introduced several subsidy policies recently in a move to encourage employers to recruit fresh graduates. These include: qualified enterprises employing university graduates and which have duly paid social insurance premiums in full amount according to regulations may, within the first 15 days of a quarter, apply for subsidy on the social insurance premiums already paid for the previous quarter.

It is understood that the beneficiary of these subsidy policies includes various types of enterprises. Large and medium-sized state-owned enterprises which have recruited college graduates the number of which has exceeded that in 2008, have signed labour contracts of one year or more with them, and have paid social insurance premiums, may be entitled to enterprise social insurance subsidy for the number of employees exceeding that of the previous year. The maximum period of entitlement to subsidy is capped at six months in the Pearl River Delta region but is extended to one year in the eastern, western and northern regions of Guangdong.

Small and medium-sized enterprises (SMEs) and non-public enterprises which have recruited college graduates, have signed labour contracts of one year or more with them, and have paid social insurance premiums, may be granted enterprise social insurance subsidy according to the actual number of graduates recruited.

SMEs organising college graduates to participate in pre-appointment training may be granted pre-appointment training subsidy of Rmb200 per person per month for a period of not more than three months, as well as one-off vocational skills accreditation subsidy of Rmb300 per person, provided that the attendees are awarded the relevant vocational qualification certificates.

Qualified enterprises operating in difficulty which do not resort to laying off college graduates who are core technical staff may be granted social insurance subsidy and employment subsidy for a period of not more than six months according to the actual number of graduate core technical staff insured.

Enterprises established by fresh graduates which recruit local fresh college graduates, sign labour contracts of one year or more with them, and pay social insurance premiums, may be granted social insurance subsidy and job post subsidy according to the actual number of graduates recruited within the corresponding periods, the maximum period of entitlement to subsidy is up to three years.

All types of private employment agencies, which have successfully referred fresh college graduates to jobs with the employers signing labour contracts with the recruits, may be entitled to job referral subsidy.

The amount of enterprise social insurance subsidy is the sum of the premiums on pension, medical care, unemployment, work-related injury and maternity insurance paid by enterprises on behalf of the fresh graduates recruited. As for the part payable by the individual, it is borne by the individual concerned.