Employment Details
Annual Leave Result
How China statutory annual leave works
Pro-rata rule: in the year you join an employer, leave is prorated by remaining calendar days in the year ÷ 365 × annual days; in the year you leave, by elapsed calendar days ÷ 365 × annual days. Fractions below one full day are not counted.
Unused leave payout: where the employer fails to arrange statutory annual leave and the employee does not waive it in writing, untaken days are commonly settled at 300% of daily wage — this includes the normal 100% pay, so the extra premium is 200%. On termination, untaken statutory days are generally settled in the final payroll.
Exceptions: no statutory leave accrues before 1 year of cumulative service, and long paid sick leave or long paid personal leave in a year can reduce or cancel that year's entitlement.
Legal basis and entitlement
Statutory annual leave in China is governed by the Regulation on Paid Annual Leave for Employees (2008) and its implementing measures. The entitlement is based on the employee's total cumulative working years across all employers, not just the current one:
- 1 to 10 years of cumulative service: 5 days of annual leave per year
- 10 to 20 years of cumulative service: 10 days per year
- 20 years or more of cumulative service: 15 days per year
National statutory holidays and rest days are not counted as annual leave days.
How cumulative working years are counted
Working years include employment periods verified through employment contracts, social insurance records, personnel files, or other legally recognized evidence. Self-employment periods generally do not count unless documented through formal employment relationships. New employees must provide evidence of prior service to qualify for the higher entitlement tiers.
Prorated leave for mid-year entries and exits
When an employee starts or ends employment mid-year, the annual leave entitlement is prorated based on the number of completed calendar months at the current employer:
- Entitlement = (Full annual days ÷ 12) × Number of completed months
- Fractions are rounded down to the nearest whole day
- For example, an employee entitled to 10 days who starts in March (10 months remaining) gets 10 ÷ 12 × 10 = 8 days
When annual leave can be denied or forfeited
Employers may require employees to take annual leave at specific times based on operational needs, with reasonable notice. However, employers cannot unilaterally cancel accrued leave. If an employee does not take their annual leave due to work reasons, the employer must either arrange leave in the following year or pay compensation at 300% of the daily wage for unused days (including the normal 100% already paid).
Employees who take more than a certain amount of sick leave (2 months for those with under 10 years service, 3 months for 10-20 years, 4 months for 20+ years) in a year may lose their annual leave entitlement for that year.
Disputes and enforcement
Employees should keep records of their cumulative working years and annual leave usage. If an employer refuses to grant statutory annual leave or fails to pay the 300% compensation for unused leave, the employee can file a complaint with the local labor inspection bureau or pursue labor arbitration within 1 year.