China Labour Law Updates: November 2023

Are you aware of the latest labour law updates in China? We highlight the essential changes that took place in November 2023 that you should pay attention to across the key states in China!

1. New Minimum Wage

LocationEffective Date Minimum Wage per Month (RMB)
Kunming, Yunnan ProvinceOctober 20231,990
Tianjin, TianjinNovember 20232,320
Liuzhou, Guangxi Zhuang Autonomous RegionNovember 20231,990
Nanning, Guangxi Zhuang Autonomous RegionNovember 20231,990
Lanzhou, Gansu ProvinceNovember 20232,020

2. Increase in the Maximum Contribution Base of the Housing Provident Fund

LocationEffective DateMaximum Contribution Base of the Housing Provident Fund
Nantong, Jiangsu ProvinceJuly 202332,500

3. The Work Injury Insurance

Yunnan Province

Yunnan Province recently issued a notice on adjusting the disability allowance, living care allowance and death grant for employees who have had work-related injuries in 2023. Effective 1 January 2023, adjustments have been made to enhance the disability allowances, living care allowances, and death grant for individuals who have suffered work-related injuries in the province.

This adjustment specifically applies to employees or family members currently receiving monthly disability allowances, living care allowances, and death grants as per existing regulations before December 31, 2022. Additionally, it includes the employees who have had Grade 1 to 4 work-related injuries and are receiving the basic retirement pension adjustment amount in 2023 that is lower than the adjustment amount of disability allowance in 2023.

1. Minimum Disability Allowances

  • Disability Grade 1 increased by RMB280 per month
  • Disability Grade 2 increased by RMB260 per month
  • Disability Grade 3 increased by RMB230 per month
  • Disability Grade 4 increased by RMB210 per month

After the adjustment, amounts that are below the minimum wage standard in the first category of regions in Yunnan province will be supplemented. For employees who have had Grade 1 to 4 work-related injuries and are receiving retirement pensions according to regulations, if the increase in their individual basic pension in 2023 is lower than the increase in disability allowance for the same year, the shortfall will be supplemented by the work-related injury insurance fund.

2. Living Care Allowances

  • An individual who is entirely unable of self-care will receive an additional RMB460 per month.
  • An individual who has limited ability of self-care will receive an additional RMB340 per month.
  • An individual who is partially unable to self-care will receive an additional RMB220 per month.

3. Death grant increased by RMB54 per person per month.

4. For employees who have had Grade 6 to 7 work-related injuries and struggle to have work arranged for them, the employers should increase the disability allowance synchronously based on the average salary growth rate of in-service employees in the unit and ensure that the amount is not lower than the minimum wage standard in the region. Even if the average salary experiences negative growth, the disability allowance will not be reduced.

Xinjiang Uygur Autonomous Region

The Xinjiang Uygur Autonomous Region has issued a notice regarding the adjustment of work-related injury insurances and benefits for the years 2022 and 2023. The scope of benefit adjustments for 2022 includes employees or family members who have been receiving disability allowances, living care allowances, and the death grant monthly before December 31, 2021. The scope of benefit adjustments for 2023 includes employees who have been receiving work-related injury insurance benefits monthly before December 31, 2022.

The adjustment standards are as follows:

1. Minimum Disability Allowances

Grade of DisabilityMonthly increment for employee who is eligible for 2022 benefits (RMB)Monthly increment for employee who is eligible for 2023 benefits (RMB)
Grade 1233224
Grade 2199199
Grade 3189188
Grade 4179178
Grade 5157155
Grade 6152150

For disability allowances grade 1 to 4, if the actual amount received is lower than the local minimum wage standard, it should be adjusted first in accordance with the relevant provisions of the “Work Injury Insurance Regulations.” After the shortfall is supplemented by the work injury insurance fund, the benefits should then be adjusted according to the current adjustment standards.

2. Living Care Allowances

Grade of DisabilityMonthly increment for employee who is eligible for 2022 benefits (RMB)Monthly increment for employee who is eligible for 2023 benefits (RMB)
Unable to independently care for oneself279261
Limited ability to take care of oneself221210
Partially unable to take care of oneself177163

3. Death Grant

DependantMonthly increment for employee who is eligible for 2022 benefits (RMB)Monthly increment for employee who is eligible for 2023 benefits (RMB)
Spouse9494
Other family members7572
Elderly widows or orphansAdditional mark up 10% upon above incrementAdditional mark up 10% upon above increment

Henan Province

Henan Province recently issued a notice regarding the adjustment of work-related injury insurance benefits for 2023, which have taken effect from 1 January 2023 – including disability allowances. The scope of this adjustment includes employees who started receiving disability allowances, living care allowances, and death grants before December 31, 2022. The adjustment standards are as follows:

1. Minimum Disability Allowances

  • Disability Grade 1 increased by RMB150 per month
  • Disability Grade 2 increased by RMB140 per month
  • Disability Grade 3 increased by RMB130 per month
  • Disability Grade 4 increased by RMB120 per month
  • Disability Grade 5 increased by RMB110 per month
  • Disability Grade 6 increased by RMB100 per month

2. Living Care Allowances

Grade of DisabilityMonthly Living Care Allowance (RMB)
Unable to independently care for oneself3,287.50
Limited ability to take care of oneself2,630
Partially unable to take care of oneself1,972.50

3. Death Grant

The death grant will be uniformly adjusted across the cities, with an adjustment amount of RMB50, while elderly widows or orphans will receive RMB70.

4. For work-related injuries that occurred before September 30, 1996, an additional RMB10 per person per month will be provided for disability allowances and death grants on top of the above standards.

5. During the hospitalisation for the treatment of work-related injuries, a food subsidy will be implemented at a rate of RMB25 per day per person.

Hunan Province

Hunan Province has issued a notice regarding the adjustment of disability allowances for employees who have had work-related injuries and death grants for family members of workers who died due to work-related reasons in 2023. It is specified that starting from January 1, 2023, disability allowances for employees who have had work-related injured and death grants for family members of workers who died due to work-related reasons will be adjusted. The adjustment targets and standards are as follows:

1. Disability Allowances
The adjustment targets are employees who, from the implementation of the “Work Injury Insurance Regulations” (after January 1, 2004) until December 31, 2022, have already received disability allowances according to the provisions of the “Work Injury Insurance Regulations.” For employees who have had work-related injuries and are within the mentioned scope, their disability allowances will increase by RMB114 per person per month. After this adjustment, if the disability allowance is below the first tier of the provincial monthly minimum wage standard, it will be supplemented.

2. Death Grant
The adjustment targets are family members who have been identified as eligible for death grants for workers who died due to work-related reasons before December 31, 2022, and still meet the conditions for receiving monthly death grants for family members. The death grants for family members will increase by RMB46 per person per month.

Shaanxi Province

Shaanxi Province has recently issued a notice regarding the adjustment of the standards for work-related injury insurance benefits, effective from January 1, 2023. The adjustment targets are employees who, before December 31, 2022, were receiving monthly disability allowances, life care fees, and death grants for family members according to regulations. This does not include employees who have already passed away before December 31, 2022 whose work injury insurance was terminated due to the one-time receipt of long-term benefits according to regulations, and retirees who have already received basic pension benefits. The adjustment standards are as follows:

1. Minimum Disability Allowances

  • Disability Grade 1 increased by RMB90 per month
  • Disability Grade 2 increased by RMB85 per month
  • Disability Grade 3 increased by RMB80 per month
  • Disability Grade 4 increased by RMB75 per month

For disability allowances adjusted to grade 1 to 4, if the monthly amount falls below RMB3,634.50, it will be issued at the rate of RMB3,634.50.

  • Disability Grade 5 increases by RMB70 per month
  • Disability Grade 6 increases by RMB60 per month

For disability allowances adjusted to grade 5 and 6, if the monthly amount falls below RMB2,929, it will be issued at the rate of RMB2,929.

2. Living Care Allowances

Grade of DisabilityMonthly Living Care Allowance (RMB)
Unable to independently care for oneself3,839.50
Limited ability to take care of oneself3,081.20
Partially unable to take care of oneself2,322.90

3. The monthly death grants for family members will increase by RMB45 per person.

Shandong Province

Shandong Province has issued a notice on adjusting the disability allowance, living care allowances and death grants for family members of employees with grade 1 to 4 work-related injuries in 2023. Starting from January 1, 2023, for employees with grade 1 to 4 work-related injuries, the standards for employee disability allowances, living care allowances and death grants will be adjusted.

The targets of this adjustment are employees who have had grade 1 to 4 work-related injuries and have been receiving disability allowances and living care allowances in organisations and individual industrial and commercial households before December 31, 2022, as well as family members of workers who died due to work-related reasons and have been receiving death grants. The adjustment standards are as follows:

1. Minimum Disability Allowances

  • Disability Grade 1 increased by RMB175 per month
  • Disability Grade 2 increased by RMB165 per month
  • Disability Grade 3 increased by RMB155 per month
  • Disability Grade 4 increased by RMB145 per month

2. Living Care Allowances

Grade of DisabilityMonthly Living Care Allowance (RMB)
Unable to independently care for oneself3,535
Limited ability to take care of oneself2,828
Partially unable to take care of oneself2,121

3. Death Grant

  • The spouse receives an additional RMB61 per month
  • Other relatives receive an additional RMB46 per person per month
  • Elderly widows or orphans receive an additional RMB15 per person on top of the above-mentioned standards.

Related articles:

1. Labour Law Insider – APAC 2023 Q4 Legislation Update

2. China Labour Law Updates: October

3. China Labour Law Updates: September

4. China Labour Law Updates: August 2023