As the Chinese New Year (CNY) approaches, businesses operating in China must prepare to navigate the unique challenges this festive period presents. The 2025 Chinese New Year holiday is scheduled from January 28 to February 4, with official workdays on January 26 (Sunday) and February 8 (Saturday) to compensate for the extended break. This extension includes Chinese New Year’s Eve, marking a departure from previous years.
2025 Chinese New Year Holiday Schedule:
Monday | Tuesday | Wednesday | Thursday | Friday | Saturday | Sunday |
Jan 26 – Workday | Jan 27 – Work | Jan 28 – Public Holiday | Jan 29 – Public Holiday | Jan 30 – Public Holiday | Jan 31 – Public Holiday | Feb 1 – Weekend |
Feb 2 – Weekend | Feb 3 – Adjusted Off Day | Feb 4 – Adjusted Off Day | Feb 5 – Work | Feb 6 – Work | Feb 7 – Work | Feb 8 – Workday |
It's important to note that while the official holiday spans eight days, the broader "New Year period" often extends from one to two weeks before the official start and continues for about a week afterwards. This is due to individuals taking additional leave to prolong their break or to avoid peak travel times. In 2025, the Ministry of Transportation estimates that the Spring Festival travel rush will occur from January 14 to February 22, encompassing 40 days.
Overtime Payment Regulations:
Businesses may need certain employees to work during the CNY holiday to maintain operations. It's crucial to adhere to Chinese labor laws regarding overtime compensation:
Public Holidays (Jan 28-31): Employees working on these days are entitled to at least 300% of their standard wage.
Weekends or Adjusted Rest Days (Feb 1-4): If these rest days cannot be rescheduled, employees should receive at least 200% of their regular wage.
Annual Bonuses and Employee Retention:
The period leading up to CNY often sees increased employee turnover, as many workers choose to change jobs after receiving their annual bonuses. To mitigate this, companies might consider:
Structuring Bonuses: Distributing bonuses in installments or setting post-holiday payout dates to encourage retention.
Clear Communication: Outlining bonus structures and payout schedules in employment contracts to ensure transparency and compliance with legal standards.
Financial and Tax Considerations:
Businesses should be mindful of the following financial obligations during the CNY period:
Tax Deadlines: Ensure all tax filings and payments are completed before the holiday to avoid penalties.
Financial Planning: Anticipate potential cash flow disruptions due to extended bank closures and plan accordingly.
Workplace Security and Operational Continuity:
With many businesses closing or operating with reduced staff during CNY, it's essential to implement robust security measures:
Physical Security: Secure premises with appropriate measures, such as surveillance systems and alarm installations.
Data Protection: Ensure all digital assets are backed up, and cybersecurity protocols are in place to protect against potential breaches.
Emergency Contacts: Provide employees with clear instructions on whom to contact in case of emergencies during the holiday period.
Logistics and Supply Chain Management:
The CNY holiday can significantly impact logistics and supply chains due to widespread business closures and increased demand:
Inventory Management: Accurately forecast demand and adjust inventory levels to prevent shortages or overstocking.
Supplier Coordination: Communicate with suppliers to understand their holiday schedules and plan orders accordingly.
Shipping Arrangements: Anticipate potential delays in shipping and adjust timelines to meet customer expectations.
.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.