China Labour Law Updates: January 2025

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

Increase in Minimum Wage

Updates In the Work Injury Compensations

Shanxi Province has announced an adjustment to the 2024 work-related injury insurance benefits. This adjustment applies to all injured employees receiving monthly disability allowances and living care allowances as of 31 December 2023, as well as to the dependent relatives of employees entitled to survivor pensions for dependent relatives. The adjustment details are as follows:

• Disability Allowance Adjustment Standards
  1. Disability Grade 1 increased by RMB115 per month
  2. Disability Grade 2 increased by RMB105 per month
  3. Disability Grade 3 increased by RMB95 per month
  4. Disability Grade 4 increased by RMB85 per month
  5. Disability Grade 5 increased by RMB75 per month
  6. Disability Grade 6 increased by RMB65 per month

For employees who sustained work-related disabilities before 1 October 1996:

• Employees who have completely lost their ability to work will receive an additional RMB100 per month.
• Employees who have lost most of their ability to work will receive an additional RMB70 per month.

Additionally, for employees with Grade 1 to 4 disabilities who have completely lost their ability to work, if their monthly disability allowance remains below RMB3,287 yuan after the above adjustments, it will be aligned with the standards.

• Survivor Pensions For Dependent Relatives
  • The spouse will receive an additional RMB52 per month.
  • Other relatives will receive an additional RMB42 per month.

• Living Care Allowances
  • Person who is unable to independently care for oneself will receive an additional RMB107 per month
  • Person who has limited ability to take care of oneself will receive an additional RMB86 per month
  • Person who is partially unable to take care of oneself will receive an additional RMB64 per month

Employees whose living care expenses fall below the standard will receive supplements: RMB3,428 for those fully dependent, RMB2,855 for those mostly dependent, and RMB2,057 for those partially dependent.

• Basic Pensions

For retirees with Grade 1 to 4 work-related disabilities and a complete loss of working ability, if their monthly basic pension (including the supplement from work-related injury insurance) remains below RMB3,287 after adjustment, the shortfall will be covered by the work-related injury insurance fund. Employers must apply for the compensation through the local work-related injury insurance agency, and payments will be made monthly upon approval.

Xinjiang Uygur Autonomous Region

The Xinjiang Uygur Autonomous Region has announced adjustments to work-related injury insurance benefits for employees injured or deceased in 2024. This adjustment applies to injured workers and the dependents of deceased workers who receive monthly disability allowances, living care allowances, and survivor pensions for dependent relatives. The adjustments take effect from 1 January 2024, with the following standards:

• Disability Allowance Adjustment Standards
  • Disability Grade 1 increased by RMB159 per month
  • Disability Grade 2 increased by RMB158 per month
  • Disability Grade 3 increased by RMB8142 per month
  • Disability Grade 4 increased by RMB130 per month

For employees with Grade 5 and 6 disabilities who maintain an employment relationship but face difficulties in job placement, the monthly disability allowance will increase by RMB107 for Grade 5 and RMB99 for Grade 6.

Additionally, if the allowance for employees with Grade 1 to 4 disabilities falls below the minimum wage, the shortfall will be covered by the work injury insurance fund as per regulations, before applying the above adjustments.

• Survivor Pensions For Dependent Relatives
  • The spouse will receive an additional RMB69 per month
  • Other relatives will receive an additional RMB56 per month.
  • Elderly widows or orphans will receive an additional 10% on top of the above-mentioned adjustment.

• Living Care Allowances
  • Person who is unable to independently care for oneself will receive an additional RMB306 per month
  • Person who has limited ability to take care of oneself will receive an additional RMB249 per month
  • Person who is partially unable to take care of oneself will receive an additional RMB195 per month

Fujian Province

Fujian Province has announced an adjustment to the work-related injury insurance, effective 1 January 2024. This adjustment applies to individuals who, as of 31 December 2023, receive disability allowances (excluding those already receiving basic pension benefits), living care allowances and survivor pensions for dependent relatives. The adjustments are as follows:

• Disability Allowance Adjustment Standards
  • Disability Grade 1 increased by RMB157 per month
  • Disability Grade 2 increased by RMB151 per month
  • Disability Grade 3 increased by RMB143 per month
  • Disability Grade 4 increased by RMB134 per month

After the above adjustments, if the disability allowance remains below RMB3,325 per month, the shortfall will be covered and paid.

• Survivor Pensions For Dependent Relatives

The survivor pensions for dependent relatives will be increased by RMB40 per person per month. Elderly windows or orphans will receive an additional RMB50 on top of the above standard.

• Living Care Allowances
  • Person who is unable to independently care for oneself will receive an additional RMB215 per month. If the adjusted amount is still below RMB3,795 per month, it will be raised to this standard.
  • Person who has limited ability to take care of oneself will receive an additional RMB172 per month. If the adjusted amount is still below RMB3,036 per month, it will be raised to this standard.
  • Person who is partially unable to take care of oneself will receive an additional RMB129 per month. If the adjusted amount is still below RMB2,277 per month, it will be raised to this standard.

Shaanxi Province

Shaanxi Province has announced an adjustment to the work-related injury insurance benefits, effective 1 January 2024. This adjustment applies to three groups of individuals who meet the criteria before 31 December 2023: workers who had suffered work-related injuries and has been receiving disability allowances or living care allowances, and those receiving survivor pensions for dependent relatives. However, it does not apply to individuals who have passed away before 31 December 2023, those who have received a one-time long-term benefit, or retired workers with work-related injuries who are already receiving basic pensions. The adjustment are as follows:

• Disability Allowance Adjustment Standards
  • Disability Grade 1 increased by RMB88 per month
  • Disability Grade 2 increased by RMB83 per month
  • Disability Grade 3 increased by RMB78 per month
  • Disability Grade 4 increased by RMB74 per month
  • Disability Grade 5 increased by RMB67 per month
  • Disability Grade 6 increased by RMB56 per month

After the adjustment, the monthly disability allowance for employees with Grade 1 to 4 disabilities that is below RMB3,715.25 will be increased to the standard. Similarly, the monthly disability allowance for employees with Grade 5 to 6 disabilities that is below RMB2,990.50 will also be raised to the standard.

• Survivor Pensions For Dependent Relatives

For individuals receiving a monthly survivor pension for dependent relatives, the average monthly benefit will be increased by RMB36 per person based on the current standard.

• Living Care Allowances
  • Person who is unable to independently care for oneself will receive RMB3847 per month.
  • Person who has limited ability to take care of oneself will receive RMB3087.20 per month.
  • Person who is partially unable to take care of oneself will receive RMB2327.40 per month.

Updates in the Taxable Housing Fund Policy

Hengyang City, Hunan Province

Hengyang City has recently issued a notice on adjusting the payment standards of taxable housing provident fund. The new standards are as follows:

• Payment Ratio

The maximum contribution ratio for both the employer and employee is 12%, with a minimum of 5%. The specific ratio will be determined by the employer.

• Contribution Base

The contribution base is calculated based on the employee’s average monthly salary from the previous year. The maximum base is capped at three times the average salary of employees in the previous year, as per the relevant regulations from the district’s statistical department. Based on the 2023 annual average salary of non-private sector employees in Hengyang, which is RMB84,568, the upper limit for the monthly payment base is RMB21,142.

• Monthly Payment Amount (including employer and employee contributions)
  • Maximum Standard: 1 January 2024, the maximum unilateral monthly contribution is RMB2,538, with the total monthly payment for both employer and employee reaching RMB5,076.
    • Calculation formula: Payment base × (employer ratio + employee ratio)
  • Minimum Standard: Starting 1 January 2025, the minimum contribution base will be RMB1,700 (based on the city’s minimum wage). The minimum monthly contribution is RMB85, with the total contribution for both employer and employee being RMB170.

Updates In the Elder Care Leave Policy

Xi’an City, Shaanxi Province

Xi’an City, Shaanxi Province, has recently issued the “Implementation Measures for Paid Nursing Time for Children of Elderly People During Hospitalization (Trial)”, outlining the specific details of children’s nursing leave. According to the measures, the number of nursing leave days is based on the actual hospitalization period of the employee’s parents, excluding national statutory holidays and rest days. If other holidays overlap with the nursing leave, the employer, through collective consultation or internal regulations, will determine the implementation method.

Nursing leave can be taken multiple times per year. However, the total leave for employees with only one child is capped at 20 days per year, while for those with multiple children, the limit is 10 days per year. Employers must establish the specific implementation methods for nursing leave, in compliance with the law, through collective consultation or internal rules to ensure proper enforcement of the policy.

Nantong City, Jiangsu Province

Nantong City, Jiangsu Province, has issued the “Nantong Elderly Care Services Regulations”, set to take effect on 1 March 2025. The regulations specify that if an elderly person is hospitalized and requires accompaniment and care from their children or others with maintenance obligations, the employer must provide necessary support in terms of work arrangements and time off. Under the regulations, children of hospitalized elderly individuals are entitled to a minimum of 5 days of paid nursing leave per year, and this policy applies to all children, removing the previous restriction that only applied to only-children.

Ethnic Minorities’ Public Holiday for 2025

The public holidays of the following two regions have been adjusted. If employees work on these holidays, they shall be entitled to overtime payments.

Urumqi, Xinjiang Uygur Autonomous Region

The public holiday schedule and working arrangement in winter and summer in the region are as follows:

Yinchuan, Ningxia Hui Autonomous Region

Effective 1 January 2025, the public holiday schedule in the region is as follows:

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