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Are you aware of the latest labour law updates in China? We highlight the essential legal changes you should pay attention to across the key states in China!
For employees in Shanghai who are absent from work due to illness or a non-work-related injury, where the employer and employee have agreed on the method for calculating sick leave pay, such as through the employment contract or company policies, the agreed arrangement should apply.
Where no such arrangement exists, Article 59 of the Opinions of the Ministry of Labor on Several Issues Concerning the Implementation of the Labor Law of the People’s Republic of China (关于贯彻执行〈中华人民共和国劳动法〉若干问题的意见) provides that sick leave pay or sickness relief payments during the statutory medical treatment period may be lower than the local minimum wage, but must not be less than 80% of the local minimum wage.
Employers may also establish internal policies on employee illness and non-work-related injuries based on their operational needs, with reference to Shanghai’s relevant rules on the management of employee sick leave.
For the 2026–2027 heating season, residential heating charges in Changchun will continue to be set at RMB27 per square metre of gross floor area, while the non-residential rate will be RMB31 per square metre.
Changchun Heating Group began collecting heating fees for the 2026–2027 heating season on 14 August 2026. Users with normal heating service, or whose previously suspended heating status remains unchanged, should complete payment by 20 October 2026. Applications to suspend or resume heating service should be submitted by 20 September 2026.
As a professional HR services provider, Links International regularly releases HR compliance insights to help companies stay informed of labour law changes across Asia and the Middle East regions. Subscribe to our blog or follow Links International on WeChat for more labour law insights.
Increase in Minimum Wage
| Location | Effective Date | Minimum Wage per Month (RMB) |
| Kunming, Yunnan Province | September 2026 | 2,270 |
| Taiyuan, Shanxi Province | October 2026 | 2,350 |
| Urumqi, Xinjiang Uygur Autonomous Region | October 2026 | 2,270 |
Increase in the Non-Taxable Housing Fund Contribution Cap
| Location | Effective Date | Non-Taxable Housing Fund Contribution Base Cap (RMB) |
| Kunming, Yunnan Province | January 2026 | 32,543 |
| Yichang, Hubei Province | January 2026 | 26,714.5 |
| Shanghai | July 2026 | 37,731 |
| Huzhou, Zhejiang Province | August 2026 | 31,436 |
| Chongqing | January 2026 | 31,393 |
Updates to Sick Leave and Medical Period Benefits
Shanghai Municipality
For employees in Shanghai who are absent from work due to illness or a non-work-related injury, where the employer and employee have agreed on the method for calculating sick leave pay, such as through the employment contract or company policies, the agreed arrangement should apply.
Where no such arrangement exists, Article 59 of the Opinions of the Ministry of Labor on Several Issues Concerning the Implementation of the Labor Law of the People’s Republic of China (关于贯彻执行〈中华人民共和国劳动法〉若干问题的意见) provides that sick leave pay or sickness relief payments during the statutory medical treatment period may be lower than the local minimum wage, but must not be less than 80% of the local minimum wage.
Employers may also establish internal policies on employee illness and non-work-related injuries based on their operational needs, with reference to Shanghai’s relevant rules on the management of employee sick leave.
Updates to Heating Fee Policies
Changchun City, Jilin Province
For the 2026–2027 heating season, residential heating charges in Changchun will continue to be set at RMB27 per square metre of gross floor area, while the non-residential rate will be RMB31 per square metre.
Changchun Heating Group began collecting heating fees for the 2026–2027 heating season on 14 August 2026. Users with normal heating service, or whose previously suspended heating status remains unchanged, should complete payment by 20 October 2026. Applications to suspend or resume heating service should be submitted by 20 September 2026.
As a professional HR services provider, Links International regularly releases HR compliance insights to help companies stay informed of labour law changes across Asia and the Middle East regions. Subscribe to our blog or follow Links International on WeChat for more labour law insights.