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!
Adjustment to Tax-Exempt Threshold for Severance Payments
| Location | Effective Date | Tax-Exempt Threshold for Severance Payment (RMB) |
| Hefei, Anhui Province | June 2026 | 378777 |
| Wuhu, Anhui Province | June 2026 | 323892 |
Updates to Work-Related Injury Insurance Benefits
Hainan Province
Hainan Province has issued a notice on adjustments to work-related injury disability allowances and survivor pensions for dependent relatives, effective 1 January 2026. The adjustment applies to individuals who were already receiving work-related injury disability allowances or survivor pensions for dependent relatives before 31 December 2025.
- Disability Allowance
- Disability allowance will increase by RMB 21.85 per person per month, with an additional increase of 0.72% based on the individual’s disability allowance in December 2025.
- Where the adjusted disability allowance is lower than the local minimum wage standard, it will be supplemented up to the applicable local minimum wage level.
- Where the basic pension is lower than the disability allowance, the shortfall will be supplemented in accordance with the Work-Related Injury Insurance Regulations.
- Survivor Pensions for Dependent Relatives
Survivor pensions for dependent relatives will increase by RMB 15.05 per person per month. The adjusted increase and any retroactive payment should be paid by the end of July 2026.
Updates to Overtime Pay Rules
Jiangsu Province
Jiangsu Province has published the amended Jiangsu Provincial Wage Payment Regulations. Key HR and payroll-related requirements include the need for employers to clearly define wage payment items, payment cycles, overtime wage calculation standards, and leave pay standards in their wage payment policies.
- Overtime Pay: Employers arranging overtime work should pay overtime wages based on the following standards:
- Overtime on a working day: no less than 150% of the employee’s wage;
- Work on a rest day where equivalent compensatory rest cannot be arranged within six months: no less than 200% of the employee’s wage;
- Work on a statutory holiday: no less than 300% of the employee’s wage.
For overtime on working days and statutory holidays, the payment cycle must not exceed one month from the date of overtime. For rest day overtime, the payment cycle must not exceed six months from the date of overtime. Where the remaining term of the employment contract is less than six months, the overtime wage must be paid before the contract ends.
- Comprehensive Working Hours: For employees under an approved comprehensive working hours system, any working hours exceeding the total statutory working hours within the calculation cycle will be treated as extended working hours and should be paid accordingly. Work performed on statutory holidays should be paid at the statutory holiday overtime rate.
Updates to Leave Pay Requirements
Jiangsu Province
Under the amended Jiangsu Provincial Wage Payment Regulations, employers must treat several types of statutory leave and special periods as normal attendance and continue to pay wages. These include statutory holidays, annual leave, home leave, marriage and bereavement leave, family planning surgery leave, prenatal checkups, maternity leave, breastfeeding time during the lactation period, paternity leave, parental leave, only-child parental care leave, and paid work-related injury leave.
Employers should review attendance, leave management, and payroll calculation processes to ensure the above leave periods are not incorrectly treated as absence, personal leave, or unpaid leave, and that wages are paid in accordance with the regulations.
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 and Middle East regions. Have more questions regarding labour laws in China? Get in touch with one of our representatives today!