China: Annual Leave Policy

Article author
Shirley Tsai
  • Updated

Statutory Minimum Entitlement

Employment Period Entitlement (Days)
0 - 11 months 0
1 - 9 years 5
10 - 19 years 10
20 years above 15

Note
Under Chinese labor law, an employee's statutory annual leave entitlement is determined strictly based on their cumulative work experience (total career working years in China), rather than their tenure with their current company alone. Consequently, employees must provide official supporting documentation to verify their total career history and accurately establish their leave entitlement. 

Supporting documents

  • During the onboarding, please provide social security contribution records
  • Employee may also provide previous employment certificates or labor contracts as a further confirmation

Proration Calculation

Annual leave entitlement / 12 x (number of complete months worked)

Carryover Policy - employer to select from either option:

1.
  • Unused accrued leaves from current annual leave year can be carried over to the next annual leave year and needs to be used by end of next annual leave year
2.
  • If the company cannot schedule employee’s annual leave due to work demands and employee also agree not to take it, the company must pay you for the unused days.
  • The compensation is calculated at 300% of daily wage. This 300% includes your normal salary.
  • The formula is: (Monthly Average Salary ÷ 21.75 days) × 300% × Number of Unused Days
  • Monthly Average Salary is your average monthly salary from the 12 months prior to the compensation payment, excluding any overtime pay. If employee have worked for less than 12 months, the calculation will be based on actual working period.
  • 21.75 days is the legally stipulated average number of working days per month.
  • If the company has offered employee the opportunity to take leave, but employee indicated in writing stating not to take it, the company only needs to pay you your normal daily wage for those days. They do not need to pay the 300% compensation.

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