China Labour Law Updates: February 2023

Marking the end of a long three-year wait, China has finally opened its doors to the world once more as of early 2023. This major event is slated to boost the growth of industries around the world and the Chinese economy, as a priority. A key player in the global economy and ranking at #31 in the World Bank’s 2019 Ease of Doing Business rankings reports, China has always been a large market carrying a strong spending power. With the GDP targeted to return to more than 5% post reopening of borders and the recent resumption of visa issuance for foreigners, China is ready to restore its economy.

Are you aware of the latest labour law updates in China? We’ve highlighted some major China Law changes for you to keep a note off across key states in the country!

1. New Minimum Wage – Certain cities in China have introduced a new Minimum Wage as of this year.

LocationEffective DateMinimum Wage per Hour (RMB)
Xingtai City, HebeiJanuary 202318

LocationEffective DateMinimum Wage per Month (RMB)
Guiyang City, GuizhouFebruary 20231,890
Zunyi City, GuizhouFebruary 20231,890
Xining City, QinghaiFebruary 20231,880

2. Ethnic Minorities’ 2023 Public Holidays

Urumqi, Xinjiang Uygur Autonomous Region: As of 25 December 2022, the public holiday schedule and working arrangement in the winter and summer are as follows:

FestivalsStatutory Holidays
New Year’s DayFrom December 31, 2022, to January 2, 2023, there will be a holiday for 3 days.
Spring FestivalFrom January 21st to 27th, there will be a seven-day holiday. Work will resume on Saturday, January 28 and Sunday, January 29.
Ching Ming FestivalClosed on April 5, a total of 1 day.
Rouzi FestivalApril 22 is the Rouzi Festival, and April 21 is a holiday for one day.
LabourFrom April 29 to May 3, there will be a five-day holiday. Work will resume on Sunday, April 23 and Saturday, May 6.
Dragon Boat FestivalFrom June 22 to 24, there will be a holiday of 3 days. Work will resume on Sunday, June 25.
Eid al-AdhaJune 28-30 is a three-day holiday.
Mid-Autumn Festival, National DayFrom September 29 to October 6, there will be a holiday of 8 days. Work will resume on Saturday, October 7 and Sunday, October 8.

Yinchuan, Ningxia Hui Autonomous Region – As of 30 December 2022, the public holiday schedule and working arrangement are as follows:

FestivalsStatutory Holidays
New Year’s DayFrom December 31, 2022, to January 2, 2023, there will be a holiday for 3 days.
Spring FestivalFrom January 21st to 27th, there will be a seven-day holiday. Work will resume on Saturday, January 28 and Sunday, January 29.
Ching Ming FestivalClosed on April 5, a total of 1 day.
Eid al-FitrApril 22 (Saturday) will be closed normally. April 23 (Sunday) will be implemented in accordance with the Labour Day holiday arrangement, and work will be carried out normally.
Labour DayFrom April 29 to May 3, there will be a five-day holiday. Work will resume on Sunday, April 23 and Saturday, May 6.
Dragon Boat FestivalFrom June 22 to 24, there will be a holiday of 3 days. Work will resume on Sunday, June 25.
Eid al-AdhaJune 29-30 is a holiday of 2 days.
Mid-Autumn Festival, National DayFrom September 29 to October 6, there will be a holiday of 8 days. Work will resume on Saturday, October 7 and Sunday, October 8.

3. Increase in Maximum Amount of Taxable Housing Provident Fund

The Shiyan Housing Provident Fund Management Center in Hubei Province announced that the maximum amount of the taxable housing provident fund will be increased from ¥19,792 to ¥21,366 effective 1 January 2023.

4. Increase in Maximum Amount of Severance Payments

LocationEffective DateMaximum Amount of Severance Payments (RMB)
Xining City, QinghaiJanuary 2023339,462
Yueyang City, HunanJanuary 2023219,648

5. The Standard Contract for Cross-border Transfers of Personal Information

As of 1 June 2023, the Cyberspace Administration of China will implement measures to protect the rights and interests of personal information.

To transfer personal information out of the Mainland, Personal Data Processors (enterprises or organisations) shall enter a standard contract and fulfil the following conditions:

  • not an operator of critical information infrastructure.
  • processes personal information not more than one million persons (in aggregate).
  • cumulatively made outbound transfers of personal information of not more than 100,000 persons (in aggregate) since 1 January of the preceding year.
  • cumulatively made outbound transfers of sensitive personal information of not more than 10,000 persons since 1 January of the preceding year

Before transferring the personal information, the personal data processor shall duly undergo a security assessment and file it and the contract with the local cyberspace administration authority at the provincial level within 10 working days of the effective date of the contract.

A 6-month grace period up to 29 November 2023 is given to the organisation to follow up non-compliance cross-border personal information transfers carried out before the Measures’ effective date.

Have more questions regarding labour laws in China? Get in touch with one of our representatives today!

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2. Does China’s Reopening of Borders Mean Businesses Can Hire More?

3. How Much Should You Earn? – 2023 Asia Pacific Salary Guide