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Human Resources and Payroll in China 2016-2017 (5th Edition) -
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Sick Leave
Assuming that the employer and employee have been making regular contributions under the
social insurance system, at least some proportion of the hospital costs for any illness or injury will
be covered by medical insurance, while the rest of the burden will fall on the individual.
If an employee takes sick leave, the employer must continue paying a portion of salary. Some of the
regulations stipulating this responsibility are made at a local level. Here, we compare Shanghai and
Beijing, confining our discussion to sickness or injury that is non-work-related.
Shanghai
The recuperation period is the period in which the employer cannot terminate the sick/injured
employee and is responsible for paying a proportion of salary.
Generally, theminimum recuperation period is threemonths plus onemonth for every year of service
to the company from the second year onward, with a maximum of 24 months. Nevertheless, for
employees who have lost their working capability entirely, but are not qualified for retirement, the
recuperation period should be extended subject to the agreement of the employer and employee
.
In addition, if the recuperation period stipulated in the collective labor contract, labor contract or
the company rulebook is longer than the statutory minimum one, the longer recuperation period
shall be applied.
Percentage of Salary Payable for Consecutive Leave
Within a 6-month Period
Continuous working period < 2 years
60% of employee’s salary
2 years ≤ continuous working period < 4 years
70% of employee’s salary
4 years ≤ continuous working period < 6 years
80% of employee’s salary
6 years ≤ continuous working period < 8 years
90% of employee’s salary
8 years > continuous working period
100% of employee’s salary
In Excess of a 6-month Period
Continuous working period < 1 year
40% of employee’s salary
1 year ≤ continuous working period < 3 years
50% of employee’s salary
3 years ≤ continuous working period < 6 years
60% of employee’s salary
Note: The above employee’s salary is defined as employee’s normal salary x 70%