On 12 November 2024, China issued a revision to the Regulation on Public Holidays for National Annual Festivals and Memorial Days. The amendment increases the total public holiday entitlement from 11 days to 13 days, set to take effect on 1 January 2025.
Included in the roster of newly added public holidays are Chinese Lunar New Year’s Eve and the 2nd of May for Labour Day festivities. In other words, the Spring Festival holiday period has been extended from three to four days, while an extra day has been added to the Labour Day holiday.
It is common practice to arrange annual leave in such a way that it coincides with weekends and national public holidays, thereby allowing employees to extend their holiday without using up additional leave days. Typically, the number of consecutive working days around public holidays is capped at six.
In light of the above-mentioned change to employees’ public holiday entitlement, employers are well advised to take careful note of the following considerations:
- Relevant amendments reflecting the change will have to be made to the employee handbook or any documentation delineating public holiday entitlements.
- Overtime compensation for work performed on Chinese Lunar New Year’s Eve and the 2nd of May shall be calculated at three times the employee’s regular daily pay. This provision pertains to employees working under the standard as well as the special working hours regimes in designated cities and provinces.
- As a result of the increase in public holiday entitlement, the average number of working days in a specific month will be correspondingly less. Therefore, calculations that factor in the average number of working days will need to be adjusted accordingly.
