Provinces push for paid annual leave

New policies seek to protect workers' rights, boost domestic consumption

At least seven provincial regions in China have recently issued policies to promote the implementation of paid annual leave, part of broader efforts to protect workers' rights and stimulate domestic consumption. 

Yunnan province is the latest to act. On April 30, six provincial departments jointly released a notice on facilitating staggered paid leave for employees to expand domestic demand, boost consumption and sustain stable growth.

The notice emphasizes equal protection of leave rights for all workers, regardless of contract type or position. It encourages employers to establish annual leave management mechanisms, plan leave schedules early in the year and avoid concentrated leave periods that may disrupt operations.

Staggered leave is promoted, allowing workers to combine paid leave with public holidays, school breaks or local traditional festivals to better distribute time off throughout the year.

The notice also calls on government agencies, public institutions and State-owned enterprises to lead by example, with officials encouraged to take their leave first. Private companies are urged to prioritize frontline workers and key personnel.

Eight supporting measures are outlined, including legal protection of leave rights, enhanced supervision and public awareness campaigns. Authorities will monitor implementation in government bodies and public institutions, with reports submitted annually to higher-level authorities.

Since March, provinces including Zhejiang, Guizhou, Anhui, Shaanxi, Shanxi and Hainan have also issued notices or proposals promoting paid leave.

In Zhejiang, labor authorities have integrated annual leave compliance into routine inspections, with a special enforcement campaign targeting small, micro and labor-intensive firms. Shaanxi has incorporated paid leave enforcement into its daily labor supervision checks.

Under existing regulations, employees who have worked for one year but less than 10 years are entitled to five days of paid annual leave. Those with 10 to 20 years of service receive 10 days, while those with more than 20 years are entitled to 15 days. If an employer cannot arrange leave due to work needs — with the employee's consent — unused days must be compensated at 300 percent of the employee's daily wage.

Despite clear legal provisions, enforcement remains weak. Many workers fear retaliation or peer pressure, and some view not taking leave as a sign of dedication.

Shen Jianfeng, head of the academic committee at the Law School of China University of Labor Relations, told China Central Television that some people believe not taking leave equates to making a greater contribution, but that perception should change.

"With technological progress, improving the quality and efficiency of work may be more meaningful than merely logging long hours," Shen said. He added that promoting paid leave is a concrete way of "investing in people", giving workers time to rest, reunite with families — helping address low birthrates and an aging population — and upgrade their skills.

Zhao Zhong, dean of the School of Labor and Human Resources at Renmin University of China, told China Youth Daily that a "culture of shame around taking leave" and the mistaken belief that "overtime equals dedication" contribute to workers' reluctance to take leave.

He urged labor authorities to shift from reactive to proactive oversight, suggesting that paid leave usage rates and compensation compliance be included in local government performance indicators.

Wang Tianyu, a researcher at the Institute of Law of the Chinese Academy of Social Sciences, warned against a one-size-fits-all approach. Small businesses often struggle with the costs of paid leave, and he suggested the government share the burden through tax breaks and subsidies.

Several provinces are aligning paid leave with spring and autumn school breaks. Anhui and Jiangsu included both measures in their 2026 government work reports.

"Connecting parental leave with school holidays addresses a real pain point for families, unleashes consumer demand and helps smooth peak tourism flows," Zhao said.