Annual Leave & Other Leave Policies in China

Understanding the annual leave policies in China is essential for both employers and employees to ensure compliance with labour laws and to promote a healthy work-life balance. Annual leave is a crucial component of employee benefits, contributing to overall job satisfaction and productivity.

Mandatory Annual Leave Entitlement in China

Year of Service “N”Annual Leave to be Entitled
1 ≤ N < 105 Days
10 ≤ N < 2010 Days
N ≥ 2015 Days
  • Year of service started from employee’s FIRST job
  • Could be prorated for new joiners and leavers
  • Untaken mandatory annual leave must be cash out when termination
  • Overtaken mandatory annual leave CAN’T be deducted from salary income
  • Employer is required to keep leave record, e.g. through leave system
  • The employer can enhance leave usage policy in Employee Handbook if necessary.

 

Regulations and Compliance

Employers must ensure that employees take their entitled annual leave. If the leave is not taken within the year, it may be carried forward to the next year, but specific company policies may apply. Employers should have clear policies in place to manage annual leave accrual and usage and get employees’ acknowledgement on the policies. Non-compliance with these regulations can lead to legal disputes and employee dissatisfaction.

 

Additional Leave Types

In addition to annual leave, employees may be entitled to various other types of leave:

  • Marriage Leave: 3-30 days
  • Maternity Leave: 158-188 days
  • Childcare Leave: 5-20 days
  • Paternity Leave: 10-30 days
  • Eldercare Leave: 5-20 days
  • Funeral Leave: 1-3 days

*This differs in different cities across different provinces.

 

General Public Holidays in China

Public HolidayMonthDuration
New Year’s DayJanuary1 Day
Spring FestivalJanuary / February4 Days
Tomb-Sweeping DayApril1 Day
Labour DayMay2 Days
Dragon Boat FestivalJune1 Day
Mid-Autumn FestivalSeptember / October1 Day
National DayOctober3 Days

Special HolidayApplicableDateDuration
Women’s DayFemaleMar 8th0.5 Day
Youth’s DayYounger than 28May 4th0.5 Day

Minority HolidayApplicableDateDuration
Corban Festival*Xinjiang RegionGovern announce1 Day

If the public holiday meets weekend, shall compensate leave in working days; not suitable for special holidays.

* Example of local rules for national minority group.

 

Sick Leave Payment

Country Level Policy:

Sick leave pay must comply with:

  1. Local wage payment policies (where applicable),
  2. Employers and employees may stipulate terms in employment contracts,
  3. Payments shall not be lower than 80% of the local minimum wage standard.

Province Level Example:

CityContinuity Sick Leaved Less Than 6 MonthsContinuity Sick Leave More Than 6 Months
Shanghai
  • 60% of wages for less than 2 years of continuous service.
  • 70% of wages for 2 to less than 4 years of continuous service.
  • 80% of wages for 4 to less than 6 years of continuous service.
  • 90% of wages for 6 to less than 8 years of continuous service.
  • 100% of wages for 8 or more years of continuous service.
  • 40% of wages for less than 1 year of continuous service.
  • 50% of wages for 1 to less than 3 years of service.
  • 60% of wages for 3 or more years of service.
BeijingNot below 80% of the city’s minimum wage standard.Not below 80% of the city’s minimum wage standard.
Shenzhen, GuangdongNo less than 60% of their regular wages for normal working hours, and not below 80% of the city’s minimum wage standard.No less than 60% of their regular wages for normal working hours, and not below 80% of the city’s minimum wage standard.

 

Importance of Annual Leave

Providing adequate annual leave is important for several reasons:

  • Employee Well-being: Helps reduce stress and burnout. Regular breaks from work improve mental health and job satisfaction.
  • Productivity: Ensures employees return to work refreshed and motivated, leading to increased productivity and creativity.
  • Legal Compliance: Avoids potential legal issues and fines by adhering to labour laws. Compliance with leave regulations also enhances the company’s reputation as a fair employer.

Employers should encourage employees to utilize their annual leave to maintain a healthy work-life balance and improve overall job satisfaction.

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Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of China employment laws and regulations, please visit the official governmental websites.

Updated on: September 2025

 

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