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Statutory Paid Annual Leave in China

Statutory Paid Annual Leave in China

In China, an employee who has been working for a consecutive period of one year or more shall be entitled to statutory paid annual leave. During annual leave, the employee shall be paid just the same as normal working days.

1.       How long the annual leave should be?

The days of annual leave which may be taken by an employee shall be determined according to the employee’s accumulative working time which shall cover the working time in the current employer or previous employers. The detailed rules are as follows:

Working Time


Days of Leave


Less than 1 year


No leave


1 year or more but less than 10 years


5 days


10 years or more but less than 20 years


10 days


20 years or more


15 days



2.       How to calculate the days of annual leave for newly hired employees?

The days of annual leave that new employee is entitled to shall be calculated in accordance with the following formula:

The days of annual leave = (the remaining calendar days during the calendar year the employee started his/her employment ?365) x the statutory days of annual leave the employee is entitled to if he/she works for the current employer for one year

If the result is less than one day he/she shall not enjoy annul leave for the current year.

3.       Under what circumstances paid annual leave are not available?

The employee who is under any of the following circumstances shall not enjoy the annual holiday of the that year:
(1)  
The employee legally enjoys the winter and summer holidays, and the days of the said holidays are longer than the annual leave;
(2)
The employee has accumulatively takes personal leave for 20 days or more and his/her salary has not been deducted in accordance with the regulations of the employer;
(3)
The employee who has worked for 1 year or more accumulatively but less than 10 years, takes sick leave that amounts to 2 months or more;
(4)
The employee who has worked for 10 years or more accumulatively but less than 20 years, takes sick leave that amounts to 3 months or more;
(5)
The employee who has worked for 20 years or more accumulatively, takes sick leave that amounts to 4 months or more.

4.       How to deal with the untaken annual leave of the employees?

The employer is required to make arrangement for employees to take their annual leave each year. An employer who does not allow an employee to take annual leave shall pay that employee 300% of his or her daily wages for each day of entitled but untaken annual leave.

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.



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