China Labour Law Updates: February 2025

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 in February 2025!

Increase in Minimum Wage

Updates to Work-Related Injury Insurance Benefits

Guangdong Province

Guangdong Province has announced an adjustment to the work-related injury insurance benefits in 2024. This adjustment applies to individuals who received disability allowances, living care expenses, or survivor pensions for dependent relatives before 31 December 2023, and continue to meet the eligibility criteria after 1 January 2024. The adjustment details are as follows:

• Disability Allowance Adjustment Standards
  • Disability Grade 1 increased by RMB70 per month
  • Disability Grade 2 increased by RMB65 per month
  • Disability Grade 3 increased by RMB60 per month
  • Disability Grade 4 increased by RMB55 per month

For employees with a grade 1 to 4 disability, if their monthly disability allowance that remains below RMB5,004 after the above adjustment, it will be aligned with the minimum standard. Additionally, for those who begin receiving a disability allowance for the first time between 1 January to 31 December 2024, if their approved amount is below RMB5,004 per month, they will receive a standardised payment of RMB5,004 from their first month of eligibility.

For employees with a grade 5 or 6 work-related disability, the adjustment amount will be at least RMB50 per month for grade 5 and RMB45 per month for grade 6.

• Living Care Allowances

The living care allowance will be adjusted for eligible individuals in each city, including those at the provincial level, as well as for those receiving the allowance for the first time.

• In Guangzhou, Shenzhen, Zhuhai, and at the provincial level, the allowance for self-care disabilities at levels 1 to 4 will be calculated as 60% of RMB13,193, 50% of RMB 14,553, 40% of RMB 11,156, and 30% of RMB 13,193, respectively.
• In other cities, the allowance for self-care disabilities at levels 1 to 4 will be based on RMB11,121, with payments set at 60%, 50%, 40%, and 30%, respectively.
• If the adjusted allowance results in a lower amount than the original standard, no adjustment will be made for now. Instead, individuals will receive a monthly increase of RMB70, RMB65, RMB60, and RMB55 for levels 1 to 4, respectively.
• If the province-wide adjustment standard exceeds these specific adjustments within the same year, the affected individuals will be included in the unified provincial adjustment.
  

• Survivor Pensions For Dependent Relatives
  • Eligible individuals will receive an additional RMB10 per month.
  • Spouses, widowed elderly individuals, and orphans will receive RMB20 per month.
  • For spouses who are also widowed elderly individuals, the additional amount will be RMB30 per month.

After the fixed-rate adjustment, if an eligible person’s pension remains below the local urban residents’ minimum living standard in 2024 (based on the highest applicable standard), it will be increased to meet that standard starting from January 2024. For those receiving the pension for the first time, if the amount determined according to regulations is below the local minimum living standard, it will be adjusted to meet the minimum standard from the first month of entitlement.

• Basic Pensions

For retirees with grade 1 to 4 disabilities who receive pension, if their pension benefits are lower than their original disability allowances, the work-related injury insurance fund will cover the difference. In 2024, this difference will be calculated based on the adjusted disability allowance standard minus the adjusted pension benefits.

Updates on Population and Family Planning Policies

Shandong Province

Shandong Province has issued the Population and Family Planning Regulations (2025 Amendment) to enhance population and family planning efforts. The regulations focus on improving women’s education and employment opportunities, ensuring reproductive health and safety, promoting gender equality, and fostering a fertility-friendly society.

• Elderly Care Leave

For elderly individuals over 60 years who are hospitalised due to illnesses, their children’s employers must provide nursing leave. Only children are entitled to 10 days of nursing leave per year, while non-only children receive 7 days per year. Wages and benefits remain unchanged during this period. The leave must be taken while the parent is hospitalised and can be used in instalments but cannot be carried over to the following year. If the children are deceased or unable to care for their parents, their spouses may take the leave. Adopted children and stepchildren are also eligible for nursing leave when caring for adoptive or stepparents.

• Marriage Leave and Childcare Leave

Individuals who marry legally are entitled to 15 days of marriage leave, with an additional 3 days for those who undergo premarital medical examinations. Couples who meet family planning regulations receive additional parental benefits: female employees are granted 60 extra days of maternity leave, while spouses receive at least 15 days of paternity leave.

Parents of children under three years old are entitled to at least 10 days of childcare leave per year. If a family has two or more children under three, parental leave is typically not cumulative, but employers with the capacity to allow it are encouraged to do so. Childcare leave is allocated based on the child’s age, with each parent receiving 10 days annually for children aged 0-1, 1-2, and 2-3 years old. The leave should ideally be taken at once or in instalments within the respective year but cannot be carried over. Foster parents and stepparents are also eligible for childcare leave when caring for adopted or stepchildren.

National statutory holidays and rest days are included in maternity leave but do not count toward marriage leave, paternity leave, childcare leave, or nursing leave.

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