China Labour Law Updates: December 2024

Are you aware of the latest labour law updates in China? We highlight the essential legal changes you should pay attention to across the key states in China!

Increase in Minimum Wage

Increase In the Contribution Base Cap of Non-Taxable Housing Fund

Updates In the Work Injury Compensations

Yunnan Province

Yunnan Province has issued a notice detailing the adjustments to work-related injury insurance in 2024. This adjustment applies to employees or dependent relatives who have been receiving related benefits before 31 December 2023. The adjustment details are as follows:

• Disability Allowance Adjustment Standards –
  • Disability Grade 1 increased by RMB180 per month
  • Disability Grade 2 increased by RMB150 per month
  • Disability Grade 3 increased by RMB120 per month
  • Disability Grade 4 increased by RMB90 per month

If the adjusted allowance falls below the minimum wage standard for first-class regions in the Yunnan Province, it will be supplemented to meet the minimum wage standard. For employees with grade 5 to 6 work-related injuries who are unable to work, the employer must increase their disability allowance based on the unit’s average employee wage in 2023.

This disability allowance must not be lower than the regional minimum wage standard. If the unit’s average employee wage experiences negative growth in 2023, the disability allowance amount shall remain unchanged and cannot be reduced.

For retired employees with grade 1 to 4 work-related injuries who are receiving pensions, if the pension increase for 2024 is lower than the disability allowance increase for the same year, the difference will be compensated by the work-related injury insurance fund.

• Survivor Pension for Dependent Relatives – The pension is increased by RMB40.

• Living Care Allowances –
  • Person who is unable to independently care for oneself will receive an additional RMB180 per month
  • Person who has limited ability to take care of oneself will receive an additional RMB130 per month
  • Person who is partially unable to take care of oneself will receive an additional RMB90 per month

Ningxia Hui Autonomous Region

The Ningxia Hui Autonomous Region has issued a notice regarding adjustments to work-related injury insurance. This adjustment applies to employees who were receiving disability allowance benefits before 31 December 2023 (excluding retired individuals receiving pensions), as well as dependents receiving survivor’s benefits. The adjustment standards are as follows:

• Disability Allowance Adjustment Standards –
  • Disability Grade 1 increased by RMB95 per month
  • Disability Grade 2 increased by RMB90 per month
  • Disability Grade 3 increased by RMB85 per month
  • Disability Grade 4 increased by RMB80 per month

For employees with grade 5 or 6 work-related injuries who cannot be assigned to work, the employer must provide a monthly disability allowance. The allowance will increase by RMB75 per month for grade 5 disability and RMB70 per month for grade 6 disability.

• Survivor Pensions for Dependent Relatives – The pension is increased by RMB25.

Jiangxi Province

Jiangxi Province has issued a notice on adjusting the disability allowance and other benefits for employees who had suffered work-related disabilities, effective 1 January 2024. This adjustment applies to employees who had suffered work-related disabilities and has been receiving disability allowances and living care expenses before 31 December 2023, as well as dependent relatives who have enjoyed death grants. The adjustment standards are as follows:

• Disability Allowance Adjustment Standards –
  • Disability Grade 1 increased by RMB124 per month
  • Disability Grade 2 increased by RMB117 per month
  • Disability Grade 3 increased by RMB110 per month
  • Disability Grade 4 increased by RMB103 per month
  • Disability Grade 5 increased by RMB96 per month
  • Disability Grade 6 increased by RMB83 per month

After the adjustment, the grade 1 disability allowance below RMB3,455, grade 2 below RMB3,263, grade 3 below RMB3,071, and grade 4 below RMB2,879 will be increased to the standard amounts.

Disability allowances for employees with grade 5 and grade 6 disabilities will be paid monthly by the employer. If the grade 5 allowance is below RMB2,687 and grade 6 below RMB2,303, they will be adjusted to RMB2,687 and RMB2,303, respectively.

• Living Care Allowances –
  • Person who is unable to independently care for oneself will receive RMB3948 per month.
  • Person who has limited ability to take care of oneself will receive RMB3158 per month.
  • Person who is partially unable to take care of oneself will receive RMB2369 per month.

• Survivor Pension for Dependent Relatives –
  • The spouse will receive an additional RMB 55 per month.
  • Other relatives will receive an additional RMB 41 per month.
  • Elderly widows or orphans will receive an additional RMB14 per month, on top of the RMB41.

If the deceased worker has multiple dependent relatives, the total additional pension will not exceed RMB 137.5 per month. After the adjustment, the spouse’s pension below RMB1,536, the other relatives’ pension below RMB1,152, and the elderly widows or orphans’ grant below RMB 1,536, will be increased to the standard amounts.

• Retirees –

For individuals who retire early due to work-related injuries, if their adjusted pension falls below RMB 2,879 in 2024, it will be supplemented to RMB2,879. This includes any difference covered by the work-related injury insurance fund from previous years.

Guizhou Province

Guizhou Province has issued a notice on adjusting the employee work-related injury insurance, effective 1 January 2024. The adjustment applies to employees who had suffered work-related injuries or dependent relatives who have enjoyed relevant benefits before 31 December 2023. The adjustment standards are as follows:

• Disability Allowance Adjustment Standards –
  • Disability Grade 1 increased by RMB350 per month
  • Disability Grade 2 increased by RMB330 per month
  • Disability Grade 3 increased by RMB310 per month
  • Disability Grade 4 increased by RMB290 per month
  • Disability Grade 5 increased by RMB270 per month
  • Disability Grade 6 increased by RMB250 per month

• Death Grant –
  • The spouse will receive an additional RMB 130 per month.
  • Other relatives will receive an additional RMB110 per month.
  • Elderly widows or orphans will receive an additional RMB20 per month, on top of the increase mentioned above.

Qinghai Province

Qinghai Province has issued a notice on adjusting the employee work-related injury insurance, enhancing the work-related injury insurance benefits for 13 consecutive years. From 1 January 2024, the standards for disability allowances, living care expenses, and dependents’ pensions will be increased. The adjustment standards are as follows:

• Disability Allowance Adjustment Standards –
  • Disability Grade 1 increased by RMB258 per month
  • Disability Grade 2 increased by RMB241 per month
  • Disability Grade 3 increased by RMB229 per month
  • Disability Grade 4 increased by RMB221 per month

The adjustment of disability allowances for workers with grade 5 to 6 work-related injuries shall be carried out in accordance with the adjustment standards for disability allowances for workers with grade 4 work-related injuries.

• Living Care Allowances –
  • Person who is unable to independently care for oneself will receive RMB4015 per month
  • Person who has limited ability to take care of oneself will receive RMB3212 per month
  • Person who is partially unable to take care of oneself will receive RMB2409 per month
  • The pension for dependents of workers who passed away due to work-related incidents will be increased by RMB108 per person per month, based on the current standard. If the adjusted amount remains below RMB1,445, it will be raised to RMB1,445 per person per month.

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