Let’s face it: Everyone needs a break sometimes. If you’re managing a team in China, here’s what you need to know about annual leave policies.
In China, the longer you’ve worked, the more vacation days you get. This is separate from public holidays and weekends, which have their own rules.
How much annual leave an employer needs to give depends on the employee’s total work history:
| Total Years Worked | Annual Leave Entitlement (Per Year) |
|---|---|
| Less than 1 year | No days |
| 1-10 years | 5 days |
| 10-20 years | 10 days |
| Over 20 years | 15 days |
It’s important to note that annual leave is based on an employee’s total work experience across all jobs, not just their time with your company.
For example, if you hire someone with five years of total experience, you must give them five days of leave, and if you hire someone with over 20 years of total experience, you must provide 15 days of leave.
Paying for Annual Leave
When employees take their annual leave, you must pay them their full salary.
If your team member has leftover vacation days at the end of the year:
- You can offer to let them carry the days over to next year.
- If they say no to carrying days over, you’ll need to pay extra.
For each unused vacation day:
- Pay double their daily wage
- This is on top of their regular salary
Therefore, we recommend encouraging your team to actually use their vacation days. This approach saves on bonus payments and is better for their well-being and productivity in the long run.
If you provide additional annual leave beyond the minimum requirement, you can set your own rules for how to handle extra unused days.
Special Cases
There are some exceptions to these rules:
Probationary Period
- New employees in their first month (probationary period) don’t get annual leave.
Long-Term Leave Impact
- Employees that take extended sick or personal leave might not be eligible for annual leave for that year.
Do Part-Time Workers Receive Annual Leave?
- Part-time or flexible workers may not get annual leave. However, the rules regarding this are complex and vary across China.
Summer/Winter Holidays
- Some jobs offer extended summer or winter breaks.
- If these breaks are longer than the standard annual leave, employees typically don’t get additional annual leave.
- For example, if an employee is entitled to five days of annual leave but get a 10-day winter break, they’ll only get the longer winter break.
- Jobs that often have summer or winter breaks include:
- Teachers and other education professionals
- University staff and researchers
- Some government employees
- Certain roles in the tourism and hospitality industry
- Some positions in international companies that follow Western holiday schedules
Offering Extra Annual Leave
Many foreign companies offer additional vacation days. To do this:
- Put the extra vacation days in your company rules or handbook.
- You can choose how to handle these extra days (like paying them out or letting them carry over).
But remember: Once it’s in writing, you must give employees these extra days off.
Need Help?
Need help with handling annual leave for your China team? Let us handle the complexities of employment regulations while you focus on growing your business.
Book a quick chat with us to discover how our expert employment services can streamline your operations in China.
