Those injured will also receive compensation, local government officials said.
At least 36 people were killed and 49 injured after panic broke out 25 minutes before midnight on New Year’s Eve at a crowded square along the city’s famed Huangpu River waterfront.
Many were crushed when crowds trying to move up a staircase clashed with others trying to move down it, city officials said.
“We are greatly grieved, feel very guilty and in deep self-accusation,” Shanghai deputy mayor Zhou Bo said at a press conference.
Family members told the South China Morning Post they believe high-level city officials should be held responsible for the incident that could have been avoided with better policing and contingency planning.
Four Huangpu district officials were fired after a city government investigation found they were largely responsible for the tragedy.
No senior municipal government officials have been punished so far.
The investigation report revealed that that 771 police and 180 security guards were deployed for the new year event monitoring a crowd which had reached 310,000 by 11 pm that evening.
At Chen Yi square, where the stampede broke out, there were only 60 officers, the report said.
“Police failed to expect the number of people for this event,” Shanghai’s Huangpu branch police Deputy Commander Cai Lixin was quoted as saying this month by the China News Service.