On November 10, 2024, the PRC State Council announced amendments to the Measures for National Public Holidays and Memorial Days, set to take effect from January 1, 2025. The amendment introduces two additional public holidays, increasing the total number of annual public holidays from 11 to 13 days.
Under the revised schedule:
Chinese Lunar New Year’s Eve will now be a designated public holiday.
An additional public holiday will be added to International Labor Day on May 2.
This adjustment aligns with existing traditional holiday arrangements to provide employees with uninterrupted time for travel and family visits, a hallmark of Chinese public holiday practices.
The new holiday arrangement is as follows:
Holiday | Dates | Days |
New Year’s Day | 1 January | 1 day |
Spring Festival | Chinese Lunar New Year’s Eve and the 1st to 3rd day of the first lunar month | 4 days |
Tomb Sweeping Day | Either 4, 5, or 6 April (based on solar terms) | 1 day |
International Labor Day | 1 to 2 May | 2 days |
Dragon Boat Festival | 5th day of the fifth lunar month (according to the Chinese Lunar Calendar) | 1 day |
Mid-Autumn Festival | 15th day of the eighth lunar month (according to the Chinese Lunar Calendar) | 1 day |
National Day | 1 to 3 October | 3 days |
Adjustments to Public Holiday Practices
To maintain the tradition of extended holidays for travel and family visits, the Chinese government will continue to adjust working days and rest days around public holidays. However, starting in 2025:
Consecutive working days around holidays will generally not exceed 6 days.
No adjustments will be made if a one-day public holiday falls on a Wednesday.
Companies can choose whether to follow these adjustments but may face operational challenges if they diverge from the government schedule, as most businesses and government offices will adhere to the adjusted calendar.
Impact on Working Hours and Payroll
Changes in Annual and Monthly Working Days
With the increase in public holidays, the annual working days for employees in China will reduce from 250 days to 248 days, resulting in the following changes:
Monthly working days for standard hour calculations decrease from 20.83 days to 20.67 days.
Quarterly and annual working hours for employees under a comprehensive working time system reduce accordingly:
Quarterly hours: From 500 to 496 hours.
Annual hours: From 2,000 to 1,984 hours.
Overtime Payment Adjustments
Employees working on the new public holidays (Lunar New Year’s Eve or May 2) are entitled to 300% of their daily salary for overtime, as per PRC law.
For companies using the comprehensive working time system, more overtime payments may be required if standard working hours are exceeded.
No Change to Payroll Calculations
Despite the increase in public holidays, the monthly payroll days remain at 21.75 days, as PRC law mandates full salary payment for public holidays. Consequently, there are no changes to salary calculations for sick leave or untaken annual leave.
Key Takeaways for HR Management
Minimal Policy Updates RequiredCompanies do not need to update employee handbooks or HR policies solely to reflect the increase in public holidays.
Focus on Comprehensive Time SystemEmployers using comprehensive working time systems should adjust their overtime calculations to account for the reduced standard working hours.
Monitor Official AnnouncementsBusinesses should continue monitoring government announcements regarding public holiday adjustments each year to manage staffing and holiday schedules effectively.
Broader Implications of the New Holiday Policy
The increase in public holidays reflects a broader effort by the Chinese government to support work-life balance and promote domestic travel and consumption. By ensuring consecutive working days do not exceed six and simplifying mid-week holiday adjustments, the policy aims to enhance employee well-being without significantly disrupting business operations.
Companies that proactively align their HR practices with these changes can ensure compliance while maintaining employee satisfaction and operational efficiency.
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