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.
| Location | Effective Date | Minimum Wage per Hour (RMB) |
| Xingtai City, Hebei | January 2023 | 18 |
| Location | Effective Date | Minimum Wage per Month (RMB) |
| Guiyang City, Guizhou | February 2023 | 1890 |
| Zunyi City, Guizhou | February 2023 | 1890 |
| Xining City, Qinghai | February 2023 | 1880 |
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:
| Festivals | Statutory Holidays |
| New Year’s Day | From December 31, 2022, to January 2, 2023, there will be a holiday for 3 days. |
| Spring Festival | From January 21st to 27th, there will be a seven-day holiday. Work will resume on Saturday, January 28 and Sunday, January 29. |
| Ching Ming Festival | Closed on April 5, a total of 1 day. |
| Rouzi Festival | April 22 is the Rouzi Festival, and April 21 is a holiday for one day. |
| Labor | From 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 Festival | From June 22 to 24, there will be a holiday of 3 days. Work will resume on Sunday, June 25. |
| Eid al-Adha | June 28-30 is a three-day holiday. |
| Mid-Autumn Festival, National Day | From 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:
| Festivals | Statutory Holidays |
| New Year’s Day | From December 31, 2022, to January 2, 2023, there will be a holiday for 3 days. |
| Spring Festival | From January 21st to 27th, there will be a seven-day holiday. Work will resume on Saturday, January 28 and Sunday, January 29. |
| Ching Ming Festival | Closed on April 5, a total of 1 day. |
| Eid al-Fitr | April 22 (Saturday) will be closed normally. April 23 (Sunday) will be implemented in accordance with the Labor Day holiday arrangement, and work will be carried out normally. |
| Labor | From April 29 to May 3, there will be a five-day holiday. We will start work on Sunday, April 23 and Saturday, May 6. |
| Dragon Boat Festival | From June 22 to 24, there will be a holiday of 3 days. Work will resume on Sunday, June 25. |
| Eid al-Adha | June 29-30 is a holiday of 2 days. |
| Mid-Autumn Festival, National Day | From 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 notice issued by the Hubei Shiyan Housing Provident Fund Center stated that from January 1, 2023, the upper limit of the housing provident fund contribution base in 2023 will be increased from 19,792 yuan to 2,1366 yuan.
- The Shiyan Housing Provident Fund Management Center in Hubei Province revealed that the maximum amount of the taxable housing provident fund will be increased from 19,792 yuan to 21,366 yuan effective 1 January 2023.
4. Increase in Maximum Amount of Severance Payments
| Location | Effective Date | Maximum Amount of Severance Payments (RMB) |
| Xining City, Qinghai | January 2023 | 339462 |
| Yueyang City, Hunan | January 2023 | 219648 |
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:
- Non-critical information infrastructure operators; not an operator of critical information infrastructure
- Where less than 1 million people have handled personal information; Processes personal information not more than one million persons (in aggregate)
- Where less than 100,000 people have provided personal information overseas in aggregate since January 1 of the previous year; Cumulatively made outbound transfers of personal information of not more than 100,000 persons (in aggregate) since 1 January of the preceding year.
- Where less than 10,000 people have cumulatively provided sensitive personal information overseas since January 1 of the previous 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 organization to follow up non-compliance cross-border personal information transfers carried out before the Measures’ effective date.
Have more questions regarding labor laws in China? Get in touch with one of our representatives today!
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Angie is a Director for HR Outsourcing at Links International based in Shanghai. With over 10 years of experience in global HR services, she is tasked with delivering our Payroll Outsourcing, PEO/EOR/Secondment, Work Visas, and Social Insurance services across 70+ cities in China. Wing is our Payroll Manager at Links International who is also based in Shanghai. She has over 10 years of experience as an expert on China individual income tax, labour law, and social security administration, as well as a strong familiarity with legal entity setup procedure.
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