China has no annual bank of paid sick days. Instead, an employee who is ill or injured outside work has a protected medical treatment period, ordinarily 3 to 24 months, during which certain dismissals are barred and sick pay is due. Nationally, sick pay can be below the minimum wage but not below 80% of it, and cities add their own rules. Shanghai’s changed in August 2026.
This guide is for employers with staff in mainland China.
Checked 29 October 2026 against national rules and the Shanghai, Beijing, Guangzhou and Shenzhen labour authorities.
Sick leave, sick pay and the medical period
Three terms do different jobs. 病假 (sick leave) is the absence itself, supported by medical evidence. 病假工资 (sick pay) is what the employer pays during it, set by city rules, the contract or a collective agreement, above a legal floor. 医疗期 (the medical treatment period) is the window of medically necessary absence during which the job is protected. It isn’t an unpaid period: sick pay or sickness relief is payable during it under the applicable rules (Medical Period Provisions, Article 5).
Mixing these up can lead to the wrong pay or a premature dismissal.
How long the medical period is
The national rule sets the period by two numbers: the employee’s total working years, and their years with the current employer (Medical Period Provisions, Article 3).
| Total working years | Years with current employer | Medical period |
|---|---|---|
| Under 10 | Under 5 | 3 months |
| Under 10 | 5 or more | 6 months |
| 10 or more | Under 5 | 6 months |
| 10 or more | 5 to under 10 | 9 months |
| 10 or more | 10 to under 15 | 12 months |
| 10 or more | 15 to under 20 | 18 months |
| 10 or more | 20 or more | 24 months |
Separate absences add up within a longer window: a 3-month period is counted within 6 months, 6 within 12, 9 within 15, 12 within 18, 18 within 24, and 24 within 30 (Article 4). Counting starts on the first day of sick leave, and rest days and public holidays during it are included (Guangzhou HRSS). Serious illness can bring extension rules, so check the local standard before treating the period as used up.
Shanghai works differently. Only service with the current employer counts: 3 months in the first year, one more month for each further full year, up to 24 months (沪府发〔2015〕40号, extended to 30 June 2030 by 沪府〔2025〕20号). “Full year” matters: someone with between one and two years’ service still has 3 months, and someone with 3 years 3 months has 5 (Shanghai HRSS). Shanghai counts in working days, treating 20.67 working days as one month, and the period applies during probation too (Shanghai government). Don’t apply that working-day method elsewhere.
Sick pay, and what changed in Shanghai
During the medical period, sick pay or sickness relief may be paid below the local minimum wage, but not below 80% of it (1995 Opinions on the Labour Law, Article 59). That is a floor, not a standard rate. City rules, the contract, a collective agreement or company policy can all require more, and Shenzhen sets a separate percentage test (see the table below).
Shanghai. For years, two Shanghai circulars set sick pay as a percentage of wages that rose with length of service. Both were valid until 15 August 2026 (沪人社规〔2021〕6号), and the Shanghai labour bureau has confirmed that the 1995 circular expired on that date (Shanghai HRSS, 19 August 2026). The current Enterprise Wage Payment Measures require leave wages to be paid according to the rules and set the base: the post’s normal monthly wage, or 70% of normal attended pay where nothing is agreed, never below the minimum wage (Article 9). They don’t restate the old percentages.
The expiry doesn’t automatically rewrite employees’ terms. Where a contract, collective agreement or company policy promises a sick pay rate, that promise still applies, and changing an individual’s contractual entitlement needs written agreement (Labor Contract Law, Article 35). Review the national floor, your agreements, policies and existing arrangements before changing anything.
Four cities at a glance
| City | Medical period | Sick pay rule | 80% benchmark (monthly) |
|---|---|---|---|
| Shanghai | Current-employer service only | National floor, plus any agreed rate (see above) | RMB 2,192 80% of 2,740 |
| Beijing | National scale | Per the contract or collective agreement; at least 80% of the Beijing minimum wage (Art. 21) | RMB 2,032 80% of 2,540 |
| Guangzhou | National scale | Per the contract, collective agreement or national rules; at least 80% of the local minimum wage (Guangdong Wage Payment Regulations, Art. 24) | RMB 2,144 80% of 2,680, from 1 Sep 2026 |
| Shenzhen | National scale | At least 60% of normal working-time wages, and at least 80% of the Shenzhen minimum wage (Art. 23) | RMB 2,160 80% of 2,700, from 1 Sep 2026 |
The benchmark is a monthly comparison, not the amount due for a day or two of sick leave. Each city’s medical period follows the ordinary scale above, subject to extensions and any more generous terms.
What the protection does and doesn’t stop
While the medical period runs, the employer can’t dismiss the employee under Article 40 (no-fault grounds) or Article 41 (economic redundancy) (Labor Contract Law, Article 42). It doesn’t block a dismissal for cause under Article 39, though illness or a medically justified absence is not itself a ground, and it doesn’t block a genuine mutual agreement to end the contract.
A fixed-term contract that would expire during the period is extended until the protected circumstance ends (Article 45). Probation doesn’t remove the protection: during probation the employer’s routes are limited to Article 39 and Article 40(1)–(2) anyway (Article 21), and Article 40 can’t be used while the period runs. Our severance guide explains each route and what it costs.
When the period ends
The end date is a review point, not a dismissal decision. Article 40(1) allows termination only if, after the medical period, the employee can do neither their original work nor other work the employer arranges. The employer then gives 30 days’ written notice or a month’s pay instead, and pays economic compensation (N).
Before using that route, confirm whether a formal work-capacity appraisal, an extension or another local procedure applies, whether another Article 42 protection still applies, and that the union has been told the reasons (Article 43). Keep the medical evidence and a record of the original role, the alternative work offered and the employee’s response.
Shanghai adds a cost. On this route, a Shanghai employer pays a medical subsidy of at least six months’ wages on top of economic compensation, based on the 12-month average and never below the minimum wage (Shanghai Labour Contract Regulations, Articles 44–45). It applies to this route in Shanghai only.
Employer checklist
- Medical evidence from a qualified medical institution, with your leave procedure followed. In Shanghai, requiring a designated or top-tier hospital has no legal basis, though a doubtful certificate can be questioned (Shanghai HRSS).
- An absence log with a running total against the employee’s medical period.
- The period worked out for the employee’s city: total and current-employer service nationally, current-employer service in Shanghai.
- Sick pay at or above every test that applies (city rule, contract, policy), run through payroll.
- A review date before the period ends.
- Before any exit: the appraisal and procedure checks above, then the severance checklist.
How NNRoad supports this
Under China Employer of Record, NNRoad calculates sick pay under the rule for the employee’s city, pays it through payroll, and tracks how much of the medical treatment period has been used. Our China employment law guide covers leave and other entitlements more widely. Talk to us about sick leave administration and payroll treatment.
FAQ
Do social insurance contributions continue during sick leave?
Yes. Sick leave doesn’t end the employer’s social insurance obligations, and the employer’s share can’t be passed on to the employee (Shanghai HRSS). Contribution bases follow the applicable local and scheme rules.