Shanghai Introduces Shared-Cost Mechanism to Support Maternity and Childbirth Leave

The Shanghai government on August 8, 2025 introduced a significant new policy to combat declining birth rates, an ageing population, and perceived barriers in the workplace for female professionals. The policy aims to benefit employers and their employees to support childbirth and promote a “birth-friendly society” in Shanghai.

The Shanghai Municipal Human Resources and Social Security Bureau announced the release of the Notice to Implement Social Insurance Subsidies for Employers during the Maternity and Childbirth Leave of Female Employees, which aims to establish a cost-sharing mechanism for childbirth expenses among government, society, and enterprises to reinforce the value of being birth-friendly. The initiative seeks to eliminate employment barriers for women to the greatest extent possible and facilitate high-quality, full employment for female workers.

The notice provides that from January 1, 2025, employers may enjoy a social insurance subsidy for female employees who (1) give birth during their employment, (2) receive the statutory maternity and childbirth leave, and (3) were lawfully enrolled in the social insurance system. The subsidy covers 50% of the employer’s actual contributions for basic pension insurance, basic medical insurance (including maternity insurance), unemployment insurance, and work-related injury insurance during the maternity and childbirth leave period, for six months starting from the month of the employee’s childbirth.

Employers may apply for the subsidy within one year from the conclusion of the female employee’s maternity and childbirth leave.

For dispatched workers, the labor dispatch agency is responsible for applying for the subsidy and should then transfer the full amount of the subsidy to the company that actually provides the job and bears the wages and social insurance expenses of such workers.

In addition, the notice encourages employers to establish “birth-friendly positions” for female employees when they return from maternity leave, by implementing flexible management approaches such as flexible working hours, home or remote work options, flexible leave arrangements, and adjusted performance evaluations to facilitate their balance of family and work responsibilities.

Employers in Shanghai should review their maternity leave policies and practices to ensure they can avail themselves of this unique cost-sharing subsidy from the Shanghai municipal government.