Facing a provincial aging rate slightly higher than the national average, the Shanxi provincial government has significantly increased fiscal investments to build a high-quality elderly care service system. Through targeted measures, the province aims to bridge the gap between supply and demand, improving both the quality and efficiency of senior care services.
During the "14th Five-Year Plan" period, Shanxi allocated a total of 5.039 billion yuan towards elderly care services and senior welfare, with an average annual growth rate of 53%, surpassing the growth rate of general livelihood expenditures by 48 percentage points, according to Wang Jiping, Vice Governor of the Shanxi Provincial Department of Finance.
By the end of 2025, Shanxi's population aged 60 and above reached 8.059 million, accounting for 23.54% of the province's total resident population. Currently, the province operates 1,214 elderly care institutions, 8,810 daytime care facilities in urban and rural communities, and provides 109,100 care beds. However, there remains a gap between the existing supply of services and the growing demand for elderly care.
To address challenges such as the shortage of high-quality care institutions, operational difficulties in rural daytime care centers, and a lack of professional care workers, Shanxi recently issued the "Several Measures to Deepen the Reform and Development of Elderly Care Services in Shanxi Province." These measures aim to refine the institutional framework for elderly care, enhance the overall service level, and promote high-quality development in the sector.
Financial input is crucial for improving the elderly care system. In 2026, the Shanxi Provincial Department of Finance allocated 311 million yuan in service consumption subsidies for moderately to severely disabled seniors, alleviating their care-related financial burdens. Additionally, 218 million yuan in provincial subsidies was directed towards高龄津贴 (old-age allowances) for 890,000 residents aged 80 and above. A further 9 million yuan was allocated as nursing subsidies for low-income, disabled seniors aged 60 and above, providing 100 yuan per person monthly. To date, Shanxi has redeemed 71,000 consumption vouchers worth 26.14 million yuan, benefiting 45,000 disabled seniors and stimulating 86.61 million yuan in elderly care service consumption, stated Li Jianhong, Party Secretary and Director of the Shanxi Provincial Department of Civil Affairs.
Investment must target both seniors and the care workforce. The measures propose recruiting 1,000 university graduates annually during the "15th Five-Year Plan" period to work in villages and communities, providing "butler-style" elderly services. Graduates who join care institutions after July 1, 2023, and work directly in frontline care roles are eligible for one-time onboarding incentives ranging from 30,000 to 60,000 yuan based on their educational background, encouraging talent retention and development.
Alongside strengthening human resources, Shanxi is also enhancing its physical care infrastructure. Wang Jiping indicated that in 2026, 128 million yuan in provincial funds was allocated for urban and rural "Happiness Projects" for the elderly, supporting the renovation and expansion of 50 community-based care projects and regional service centers to improve living conditions for seniors. Furthermore, 127 million yuan from lottery public welfare funds was directed towards facility construction, maintenance, safety inspections, caregiver training, and employee incentives. An additional 51.63 million yuan in provincial funds was earmarked for the "1251" project supporting community-based home care and subsidies for private care institutions, further incentivizing social participation in the sector.
Enhancing the elderly care system requires concerted efforts from both the government and the market. The measures emphasize increasing policy support, including one-time construction subsidies, operational subsidies, per-bed subsidies, and loan interest discounts for care institutions. Notably, the one-time construction subsidy standard has been raised from 3,000–5,000 yuan to 10,000 yuan per bed. Innovatively, the measures also suggest leveraging high-quality private institutions to establish or expand regional service centers, creating more development opportunities for capable and quality-driven private providers.
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