Introduction
As of 2022, China's GDP is estimated at US$17.96 trillion. With an average annual rate of 9%, China has experienced remarkable economic growth, successfully establishing itself as one of the world’s leading economies.
Thanks to modernization and the country’s pursuit of high-quality development, numerous companies worldwide are actively seeking opportunities to capitalize on the opportunities the country offers.
However, to successfully expand your business in China, you must be aware of the local rules and regulations around hiring. One crucial aspect of these employment laws is the leave policy in China.
It is governed by rules, including the Labor Law of the People’s Republic of China. They outline the rights and obligations of both employers and employees regarding various types of leave, such as maternity leave, paternity leave, and public holidays.
All these regulations are crucial for maintaining a healthy work-life balance and ensuring the workforce's well-being.
Read on for a detailed overview.
Adoption Leave
- Currently, there is no provision for adoption leave in China.
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Talk to an expertEarned Leave
The ‘Regulation on Paid Annual Leave for Employees' clearly outlines provisions related to earned leave or paid annual leave in China.
- Under this leave policy in China, employees can avail of earned leave if they have provided continuous service for one or more years.
- The total duration of earned leave in China differs based on the length of service of employment.
- The annual leave entitlement is separate from national legal holidays and off days.
- Employees who take annual leave are entitled to receive their regular wages or salary for the duration of their leave period.
Under the leave policy in China, there are certain instances where an employee’s entitlement to annual leave for a given year may be forfeited. It includes,
- If they have utilized winter vacation and summer vacation, resulting in a total leave duration exceeding their annual leave entitlement.
- If they have taken private affairs leave for a cumulative period of 20 days or more, and no deductions have been made from their wages for this purpose.
- If they have been on sick leave for a total duration of two months or more, provided they have worked accumulatively for one to ten years.
- If they have been on sick leave for three months or more, provided they have worked accumulatively for ten to 20 years.
- If they have been on sick leave for four months or more, provided they have worked accumulatively for 20 years or more.
Maternity leave
Provisions related to maternity leave in China are clearly outlined in the Labor Law of the People’s Republic of China.
In 2012, China’s State Council introduced the Special Provisions on Labor Protection of Female Employees. One of the key amendments introduced by the Special Provisions was the extension of maternity leave in China. Some of its crucial aspects include:
- Increasing the standard maternity leave in China to 98 days.
- Of the 98 days of maternity leave, 15 can be taken before childbirth.
- In cases of complications at birth, female employees are entitled to an additional 15 days of leave.
- Similarly, an additional 15 days is granted for each newborn in multiple births, such as twins or triplets.
- Females with maternity insurance coverage are paid by the maternity insurance fund.
- Female employees without maternity insurance are entitled to an allowance paid by the employer directly.
- It is calculated based on the employee’s pre-maternity leave salary.
Parental leave
Parental leave in China is currently not mandated by the labor laws. However, the updated ‘Population and Family Planning Law’ includes specific provisions that indicate the state’s support for establishing childcare/parental leave when conditions are met.
- In certain provinces such as Beijing and Shanghai, employees are granted five days of childcare leave each year until their child reaches three years of age.
- Additionally, according to Beijing’s regulations, the total number of working days of parental leave that a couple can take each year is capped at ten.
- In other areas, such as Qinghai and Shanxi, each parent can take 15 days of parental leave until their child reaches three years of age.
Please note that not all provinces in China mandate childcare leave.
Paternity leave
- There is currently no legal provision that mandates paternity leave in China.
- However, that being said, many areas in China are known to provide a standard paternity leave of 15 days to employees.
Public holidays
The seven public holidays in China are:
Sick leave policy
The Regulations on Medical Treatment provide guidelines for managing leaves due to non-work related injury or illness.
- The duration of paid sick leave in China usually varies from three to 24 months, depending on the worker’s total years of work experience and tenure with the current employer.
- The sickness benefit provided to insured workers varies depending on the duration of the illness.
- Initially, the benefits range from 60% to 100% of the worker’s last monthly wage for up to six months each year.
- Following this, the benefits decrease to 40% to 60% of the worker’s last monthly wage.
Casual leave
- There is currently no provision for casual leave in China.
Unpaid Leave
Unpaid leave can be granted for various reasons, including personal matters, medical reasons, or other circumstances that necessitate time away from work. While unpaid leaves do not provide financial compensation, employees can maintain their employment status and benefits.
Other leaves
Marriage leave
- The current minimum paid marriage leave in China is three days.
- However, certain provinces, such as Gansu and Shanxi, are known to provide 30 days of paid marriage leave to their employees.
Bereavement leave
- Under the labor laws of China, employers are required to provide paid bereavement leave or funeral leave to employees.
- The duration of such leave may differ based on the province or local regulations.
- For example, in Shanghai, employees are entitled to one to three days of bereavement leave.
Sabbatical leave
- There is currently no provision for sabbatical leave under the labor laws of China.
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FAQs
Q1: How many annual leave days in China?
A1: Annual paid leave in China lasts five to fifteen days, depending on the cumulative length of service of the employee.
Q2: What is annual leave in Chinese?
A2: Annual leave, or nianjia, refers to the allocated period of paid time off that employees are entitled to take each year for rest, relaxation, and personal activities.
Q3: How many days of holiday in China?
A3: In China, there are seven statutory public holidays.
Q4: What is the termination period in China?
A4: When an employer initiates the termination of the contract in China, they must provide employees with a notice period of at least 30 days.