Payroll and Benefits Guide China

Annual Leave (vacation)

Paid leave in China is set in the employment contract and is dependent upon the years of employment. Paid leave is in addition to all public holidays.

For an employee within the first year of employment, there is no entitlement for paid annual leave. However, after completing the first year up to the tenth year, the employee is entitled to 5 days of paid leave. This increases to 10 days for employees within 10 to 20 years of service and a maximum of 15 days paid leave for employees who have completed 20 years’ service or more.

PTO carryover

Employers cannot forfeit accrued statutory leave by policy.

Note:

• For TalentBank EOR, unused PTO can either be carried over to the next year or paid

Public Holidays

There are 13 yearly public holidays, however, some regions have additional holidays.

Working on public holidays is uncommon in China, but if an employee is required to work the overtime payment is generally paid at 300% of the hourly rate. The hourly rate is calculated by using the monthly salary rate for the employee divided by 174 (average number of working hours in a month).

Working on standard holidays is paid at 200%.

Public holidays falling on weekends or other days might be moved to create an extended holiday period.

Sick Days

Sick pay in China is outlined in the employment contract and depends on the years of employment, the actual amount of sick leave, and the provision of a professional medical certificate. Some of the regulations regarding the calculation for sick pay are made at a local level, e.g., there are differences between Shanghai and Beijing. However, in general, the process is as follows:

The amount of paid sick leave entitlement is based on the number of years of service.

• Less than five years entitles the employee to 3 months of sick leave
• 5 – 10 years’ service entitles the employee to between 6 to 9 months of sick leave (region-specific)
• 10 – 15 years’ service entitles the employee to between 12 to 18 months of sick leave (region-specific)
• 15 – 20 years’ service entitles the employee to 18 months, and more than 20 years of service entitles the employee to up to 24 months of sick leave

The entitlement for sick pay is also based on the number of years’ service; for sick leave of fewer than six months, the calculation is as follows:

• Less than two years of employment – 60.00% of the regular wages
• 2-4 years of employment – 70.00% of the regular wages
• 4-6 years of employment – 80.00% of the regular wages
• 6-8 years of employment – 90.00% of the regular wages
• 8+ years of employment – 100.00% of the regular wages

The entitlement for sick pay is also based on the number of years of service for sick leave of more than six months in length; the calculation is as follows:

• Less than 1 year of employment – 40.00% of the regular wages
• 1-3 years of employment – 50.00% of the regular wages
• 3+ years of employment – 60.00% of the regular wages

Maternity Leave

Female employees are entitled to basic Maternity leave of 98 days, which can be taken from 15 days prior to the expected date of childbirth. Each individual province also has entitlement to extended maternity leave, up to a total maternity leave period of:

• Chongqing, Guangdong – 178 days
•  Tianjin – 128 days
• Henan, Hainan – 190 days
• Jiangxi, Hebei (for the third child), Zhejiang (for the third child) – 188 days
• Gansu, Heilongjiang, Fujian – 180 days
• Guangxi – 148 days
• Jiangsu – 128 days:
• Other regions (including Beijing) – 158 days

The calculation of the maternity payment is made by the Social Security Bureau (where the employee is registered) and is typically based on the average monthly salary across the year preceding the due date, or 3x the minimum wage, whichever is greater. However, calculation of basic and extended maternity leave can vary per province regulations.

Additional leave entitlement is also in place as follows:

• Prenatal examination includes doctor visits during the first 12 weeks.
• Difficult delivery – leave days of natural delivery + 15 days
• Multiple deliveries – leave days of natural delivery + 15 days + 15 days extra per baby
• Prenatal leave: After 7th month of pregnancy can avail 1-hour day break. May also avail 2.5 months prenatal leave upon employer approval.
• Breastfeeding leave: For a child less than a year old, female employees may have up to two feeding periods per day (30 minutes per baby). Travel time for the same period shall be counted as working time. Alternatively, after childbirth, female employees may also apply for leave of 6.5 months upon employer approval. With maternity insurance (a part of Social Security Insurance), the employee is compensated with an allowance rather than her normal salary during maternity leave.
• Abortion or Miscarriage within first 4 months – 15 days
• Abortion or Miscarriage after first 4 months – 42 days

Termination of workers during pregnancy and within 1 year from Childbirth, is not permitted.

Paternity Leave

Male employees requesting paternity leave are, in the plurality of regions, entitled to 15 days. However, this may vary by location. The following are the cities that do not follow the 15-day norm:

• Tianjin, Shandong – 7 days
• Shanghai – 10 days
• Liaoning, Chongqing, Sichuan, Hunan – 20 days
• Ningxia, Guangxi, Inner Mongolia – 25 days
• He’nan, Jiangxi, Anhui, Yunnan, Gansu – 30 days

Leave is paid with regular salary by the employer.

Parental Leave

Parents are entitled to paid Childcare leave, the length of which is determined by each individual province as follows:

• Beijing & Shanghai: 5 days’ childcare leave each year until their child reaches three years old.
• Fujian, Guangxi, Inner Mongolia, Heilongjiang, Liaoning, Hebei, Jiangxi, Jiangsu, Sichuan, Guizhou, Zhejiang, Tianjin, Ningxia, Henan, Hubei, Hunan, Hainan, Xinjiang, Shandong, and Guangdong: 10 days leave each year for couples with children under the age of three years old.
• Anhui: 10 days leave per parent each year until their child is six years old.
• Yunnan: 10 days leave per year can be taken by either parent who has children under the age of three years old. An additional 5 days of leave can be taken per year by parents who have more than two children under the age of three years old.
• Shanxi, Qinghai & Gansu: 15 days leave each year to couples with children under the age of three years old.
• Chongqing: Two options on how to use this leave (1) After the Maternity/Paternity leave expires either parent can take childcare leave until the child reaches one year old; or (2) both parents can take 5 to 10 days of leave each year until the child reaches six years old.

Other Leave

• Bereavement Leave – in the event of the death of an immediate family member, an employee is entitled to up to 3 days of paid leave, depending on the employment contract and region.
• Marriage Leave – in the event of an employee’s marriage, the employee is entitled to between 3-10 days’ leave, depending on the employment contract and region.