City to determine low-incomer allowance based on consumption
2018-01-05 Source:Hangzhou China

The low-incomer allowance that covers over 80,000 families of the city is set to increase this year, as Hangzhou will take the initiative in Zhejiang Province to cancel previous policy of linking such allowances with lowest starting salary in local labor markets. The new policy will link the allowances with the average consumption of local people in general.

The monthly-paid allowance will be over 30% of the average consumption from January 2018, while it was 40% of the lowest starting salary previously. The previous imperfect policy has led to this adjustment, as many families living on subsistence incomes have certain inevitable expenses. The pegging with consumption make more sense and benefit them more, said Ye Yuanqing, head of disaster & difficulty relief office of Hangzhou Civil Affairs Bureau.  

Hangzhou built its low-incomer allowance system in 1996, offering money to low-incomers and handicapped people. The allowance linking with consumption is also unprecedented among all Zhejiang cities. The city’s districts and counties are permitted to pay such allowances in three levels, according to the new policy. Main urban areas, Xiaoshan, Yuhang and Fuyang will need to pay 100% of the newly calculated allowance; Lin’an will need to pay over 85% of the allowance; Tonglu, Chu’an and Jiande will need to pay over 80% of the allowance. 

The allowance for low-incomers in Shangcheng, Xiacheng, Jianggan, Gongshu, Xihu, Binjiang, Xiaoshan, Yuhang and Xiasha will receive CNY 917 per person per month. The allowance for low-incomers is CNY 917 in Fuyang, CNY 780 in Lin’an, and CNY 734 in Tonglu, Chun’an and Jiande. 

Timeline for low-incomer allowance change:

July 2010, it was raised to CNY 440 from CNY 400,

June 2011, CNY 525,

July 2013, CNY 588,

December 2014, CNY 660,

November 2015, CNY 744,

July 2016, CNY 819,

November 2017, CNY 917

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