Global Compliance – China
China: Increases Statutory Paid Leave for Employees
Effective January 1, 2025, the Chinese government is enhancing employee benefits by adding two more days of paid statutory holidays per year. This increase is outlined in the recent Order of the State Council of the People’s Republic of China.
Currently the employees are entitled to 11 paid leaves which are as follows:
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- New Year’s Day: 1 day off (January 1)
- Spring Festival (Chinese New Year): 3 days off (the first three days of the first lunar month)
- Qingming Festival: 1 day off (the day of the Qingming Festival in the lunar calendar)
- Labor Day: 1 day off (May 1)
- Dragon Boat Festival: 1 day off (the day of the Dragon Boat Festival in the lunar calendar)
- Mid-Autumn Festival: 1 day off (the day of the Mid-Autumn Festival in the lunar calendar)
- National Day: 3-day holiday (October 1 to 3)
Changes Effective from 2025
In an order issued on November 12, 2024, the State Council announced the following amendments to the paid statutory holiday structure wherein the following days shall be added to the list of statutory holidays:
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- Spring Festival: The leave will be extended from three to four days, now including Chinese New Year’s Eve as a paid holiday.
- Labor Day: An additional day will be added, making it a two-day holiday (May 1 and May 2).
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Take away- Employers must take proactive steps to comply with the amendment and must review and revise their policies at the earliest in order to align with the upcoming changes to the existing statutory leave requirements.
