China Labour Law Updates: February 2026

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

Effective January 2026, the following cities has increased the minimum wages to:

Updates to Work-Related Injury Insurance Benefits

• Guangdong Province

Guangdong Province has issued a notice announcing adjustments to the 2025 work-related injury insurance benefits. Effective 1 January 2025, the revised benefits apply to those receiving disability allowances, living care expenses, survivor’s pensions, and disability subsidies before 31 December 2024, as well as those who continue to receive such benefits after 1 January 2025. The specific adjustment plan is as follows:

• Disability Allowance Adjustment Standards
  • Disability Grade 1 increased by RMB45 per month
  • Disability Grade 2 increased by RMB40 per month
  • Disability Grade 3 increased by RMB35 per month
  • Disability Grade 4 increased by RMB30 per month

After the adjustment, the monthly disability allowance will be topped up to RMB 5,155 where it would otherwise fall below this amount. For employees newly assessed as having a Grade 1 to 4 work-related injury between 1 January and 31 December 2025, where the calculated monthly disability allowance is below RMB 5,155, the allowance will be paid at RMB 5,155 from the month the benefit is first granted.

• Living Care Allowances

The living care allowance is adjusted based on the assessed level of self-care impairment, as follows:

• Level 1 care: 60% of the calculation base
• Level 2 care: 50% of the calculation base
• Level 3 care: 40% of the calculation base
• Level 4 care: 30% of the calculation base

Special circumstances:

Where the adjusted standard would result in a benefit lower than the employee’s current entitlement, the adjustment will not be applied temporarily. Instead, the original allowance will remain in place, with the following monthly increments added:

• Level 1 to receive an additional RMB60 per month
• Level 2 to receive an additional RMB55 per month
• Level 3 to receive an additional RMB50 per month
• Level 4 to receive an additional RMB45 per month

Where the general adjustment standard is higher than the special adjustment standard set out above, the individual will be included under the general adjustment and the allowance will be paid in accordance with the unified standard.

• Survivor Pensions For Dependent Relatives
  • Each dependent will receive an additional RMB10 per month.
  • Spouse, elderly living alone or orphans will receive an additional RMB20 per month.
  • Where the spouse is also an elderly person living alone, he/she will receive an additional RMB30 per month.

If, after applying the above adjustments, the survivor pension remains below the local minimum living standard for urban residents in 2025 (where multiple standards apply, the highest standard will be used, the same below), the pension will be topped up to that level from January 2025.

For survivor pensions first determined between 1 January and 31 December 2025, where the determined amount is below the applicable local minimum living standard, it will be topped up to that level from the month the benefit is first paid.

• Other Adjustments
  • For workers with Grade 5 and 6 work-related injuries, adjustments to their disability allowances may be made in accordance with the relevant provisions of this notice. Specifically:
    • Grade 5: The monthly disability allowance increase shall be no less than RMB 25.
    • Grade 6: The monthly disability allowance increase shall be no less than RMB 20.
  • For workers with Grade 1 to 4 work-related injuries who have retired in accordance with Article 35 of the Regulations on Work-Related Injury Insurance and are receiving basic pension insurance benefits, if the pension amount is lower than the applicable disability allowance standard, the work-related injury insurance fund will cover the shortfall.
  • The 2025 compensation amount shall be calculated as the difference between the adjusted disability allowance standard and the adjusted basic pension insurance benefit standard for the same period.

As a leading HR services provider, Links International regularly releases exclusive insights to empower companies with an in-depth understanding of labour laws across Asia regions. Have more questions regarding labour laws in China? Get in touch with one of our representatives today!