China Labour Law Updates: May 2024

Do you know about the recent updates in China labour laws? We’re highlighting the important changes from May 2024 that are crucial for you to be aware of across the main regions in China!

1. New Minimum Wage

LocationEffective DateMinimum Wage per Month (RMB)
Hangzhou, Zhejiang ProvinceJanuary 20242490
Huzhou, Zhejiang ProvinceJanuary 20242260
Xiaoshan, Zhejiang ProvinceJanuary 20242490
Shenyang, Liaoning ProvinceMay 20242100

2. Increase in the Maximum Amount of Taxable Housing Provident Fund

LocationEffective DateMax Amount of Taxable Housing Provident Fund (RMB)
Huaian, Jiangsu ProvinceJanuary 202427200

3. The Work Injury Insurance

Shanghai issued the “Opinions of the Shanghai Municipal Human Resources and Social Security Bureau on Several Issues concerning the Implementation of the Regulation on Work-related Injury Insurance,” effective from May 1, 2024, to April 30, 2029. This opinion aims to effectively resolve practical issues and better protect the legitimate rights and interests of both employees and employers.

Application for Work-Related Injury Determination

If the registered business location differs from the place of production and operation, work-related injury determinations shall be conducted where the insurance was obtained. If the employee is not covered by work-related injury insurance at either location, and the place of production and operation falls within this city’s administrative area, the Human Resources and Social Security Bureau of the district where the production and operation occur will handle the application for work-related injury determination.

Work Injury Insurance Payment and Coverage

Employers are legally required to participate in work-related injury insurance. An employee’s work-related injury insurance coverage becomes effective once the employer completes the insurance registration procedures on their behalf.

  • For work-related injuries that occur during periods when insurance coverage is not in place or premiums are not paid, the employer must cover the expenses as per the relevant regulations.
  • Once the employer enrolls in the insurance and pays the premiums, the costs incurred from any subsequent work-related injuries will be covered by the work-related injury insurance fund.
  • If insurance coverage is reduced due to insufficient premium payments, the employer is responsible for covering the difference.
  • If the employer adjusts the paid wages and pays the full premiums after a work-related injury occurs, any subsequent incurred disability allowances (levels one to four) and death grants will be paid by the work-related injury insurance fund based on the adjusted wages.

The labour dispatch unit assigns employees to entities in Shanghai that do not have a qualified employer. In such cases, the labour dispatch unit is responsible for the floating rate of work-related injury insurance for the dispatched personnel.

If an employer assigns work-injured personnel to a new employer for various reasons, and all three parties agree, the new employer can proceed with the transfer procedures for the work-related injury insurance and assume the original employer’s liability.

Paid Sick Leave

Paid sick leave typically does not exceed 12 months, with the duration determined based on the diagnosis of the work-related injury.

  • Wages
    • During the paid sick leave, the employer shall pay the employees with work-related injuries original salary and welfare benefits on a monthly basis, calculated based on the average salary of the preceding 12 months before the injury. If the employee worked for less than 12 months before the injury, the average salary will be based on the actual number of months worked. The original salary and welfare benefits during the sick leave shall not fall below the minimum monthly wage standard for employees in this city.

  • Extend Due Date –
    • To extend the paid sick leave beyond 12 months due to severe injuries or special circumstances, the employees with work-related injuries must submit a written application and diagnosis certificate to the employer at least 15 days before the period expires. In case of any objection, the employer must file a confirmation application with the Labour Appraisal Committee and provide relevant materials within 7 days of receiving the employee’s application. The district committee will review the application and issue a confirmation opinion. Failure by the employer to submit the application within the specified time will be considered as an agreement to the extension. If an employees with work-related injuries is still within the paid sick leave or the conclusion of the labour ability appraisal has not been made, the employer shall not terminate the employment.

Recurrence of Disability

For the treatment of a recurrence of the original injured part, medical expenses will be reviewed and covered by the Municipal Social Insurance Management Center according to regulations. In the event of a dispute, the district Labour Appraisal Committee will provide an opinion on the confirmation application.

Death Grants

In the event of a work-related fatality, family members meeting any of the following criteria may be entitled to death grants according to regulations:

Family members;

Spouse and parents aged over 60 for males and over 55 for females.

Both parents deceased, with grandparents aged over 60 for males and over 55 for females.

Children under 18 years old or above 18 years old but enrolled full-time in educational institutions (up to undergraduate level).

Children deceased or deemed completely unable to work, with grandchildren under 18 years old or studying full-time in colleges and universities, even if above 18 years old.

Both parents deceased or deemed completely unable to work, with siblings under 18 years old or studying full-time in colleges and universities, despite being over 18 years old.

Employee with work-related injuries who are not yet eligible to receive pensions –

Employees with disabilities level 5 to 10 who have attained the legal retirement age are ineligible to receive basic pensions on a monthly basis within this city. Upon termination of employment with the employer, the work-related injury insurance fund will provide a one-time work-related injury medical subsidy.

If an employee with work-related injuries and reaches the legal retirement age without completing the labour ability appraisal, they will continue to receive work-related injury insurance benefits as per the regulations outlined in the “Implementation Measures” until the conclusion of the appraisal. Following the conclusion, the handling of work-related injury insurance benefits will align with the measures and the provisions mentioned in the preceding paragraph.

Related articles:

  1. China Labour Law Updates: April 2024