CHINA Law and Practice Contributed by: Linda Liang, Piao Liu, Chutian Wang and Xiangbo Lv, King & Wood Mallesons
entitled to overtime pay of not less than 300% of their normal daily or hourly wage. If an employer does not make overtime payment for its employee’s overtime work, the competent labour authorities have the right to order the employer to make such payment within a limited period; if the employer fails to comply with such order, it will be required to pay 150–200% of the outstanding over - time pay. 1.4 Compensation There is no nationwide minimum wage. The local gov - ernment of each region sets its local minimum wage, which is normally updated at least every two years and applies to all employees, regardless of their age, position and experience. The minimum wage gener - ally includes a monthly minimum wage and an hourly minimum wage. The monthly minimum wage applies to all full-time employees, while the hourly minimum wage applies to all part-time employees. It is not statutorily required for employers to provide bonuses on top of basic salaries; however, it is com - mon to see employers reward employees through var - ious bonuses – eg, the 13th month’s salary, year-end bonus, commission, performance bonus. Generally, the issuance of bonuses is solely at the employer’s discretion. If the employment contract or the employ - er’s internal policies stipulate the provision of a certain bonus to the employee, the employer shall be bound by those stipulations. Apart from the minimum wage requirements, there are no mandatory requirements on salary increase (the local government of each region generally issues a salary increase guideline every year, but it is only a ref - erence document to guide enterprises to reasonably determine salary increases and is not mandatory). Sal - ary deduction can only be made upon the employee’s consent, unless it is done on certain statutory grounds (eg, sick leave period). 1.5 Other Employment Terms Holidays According to the newly updated Regulation on Public Holidays for National Annual Festivals and Memorial Days (effective on 1 January 2025), holidays in China
include 13 days of statutory holiday for all employ - ees (New Year’s Day, Spring Festival, Labour Day, Mid-Autumn Festival, National Day, etc), as well as holidays for certain groups of people (eg, a half-day’s leave for female employees on Women’s Day, and a half-day’s leave for 14 to 28-year-old employees on Youth Day). Leaves All employees shall be entitled to fully paid statutory annual leave, sick leave and other leaves (maternity leave, childcare leave, etc) in accordance with the PRC laws and the employer’s internal policies. The main categories of leave include the following. Statutory annual leave Any employee whose accumulated service years (including all the prior service years with current and former employers) is more than one year shall be entitled to paid statutory annual leave. The number of days of statutory annual leave shall be calculat - ed based on the accumulated service years of the employee as follows:
• one to ten years ‒ five days; • ten to 20 years ‒ ten days; and • more than 20 years ‒ 15 days.
If the employer fails to arrange the statutory annual leave for an employee due to its operational needs, such statutory annual leave does not need to be arranged by the employer (with the consent of the employee), but the employer shall pay the employee 300% of the wage (the 100% normal wage and an additional 200%) on a daily basis for the unused statu - tory annual leave. Sick leave An employee who suffers from illness or a non-work- related injury has the right to take sick leave to recover from the illness or injury. The minimum salary stand - ard during sick leave required by laws and regulations may be different among provinces and cities, and the commonly used standard is 80% of the local minimum wage. There are also provinces and cities with differ - ent sick leave pay standards – eg, Shanghai has its own sick leave and sick pay regulations.
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