Here are the China statutory updates for 2025.
Effective 1 January 2025
China Extends Public Holidays by Two Days
China has revised its public holiday arrangements, adding two extra days to major national holidays. These changes aim to improve work-life balance and align holidays with cultural traditions.
Key Changes:
- Spring Festival: Now a four-day holiday, with Chinese New Year’s Eve newly included.
- May Day: Extended from one day to two days, with May 2 added.
- Longer Breaks: Public holidays can now combine with weekends or annual leave for extended breaks, while working days around holidays generally won’t exceed six consecutive days.
This update reflects the Chinese government’s efforts to enhance leisure opportunities for citizens.
Source: The State Council of the People’s Republic of China
China Gradually Delays Retirement Age
China will implement a gradual delay in the statutory retirement age, starting from 1 January 2025. The reform aims to address demographic challenges and ensure sustainable pension systems.
Key Details:
- Retirement Age Increases:
- Male employees: Gradually extended from 60 to 63 years over 15 years (one month added every four months).
- Female white-collar workers: From 55 to 58 years.
- Female blue-collar workers: From 50 to 55 years (one month added every two months).
- Pension Contribution Period: Starting in 2030, the minimum contribution period for monthly pensions will increase incrementally from 15 to 20 years by 2039.
- Flexible Retirement Options:
- Employees can retire up to three years earlier or delay retirement by up to three years with employer consent.
- Special Occupations: Early retirement policies remain for high-risk or physically demanding jobs.
The changes aim to balance workforce needs and align with increasing life expectancy, projected at 78.6 years.
Source: China Briefing
China Enforces New Network Data Security Management Regulations
China’s Network Data Security Management Regulations will take effect on 1 January 2025, introducing stricter controls for personal data protection, cross-border data transfers, and the responsibilities of data processors. These rules aim to enhance data security while aligning with global standards.
Key Provisions:
- Data Protection: Strict requirements for safeguarding personal data and managing sensitive information.
- Cross-Border Data Transfers: Organisations must conduct risk assessments before transferring personal or important data abroad.
- Responsibilities of Data Processors:
- Designate data security officers and management teams.
- Implement security measures, including encryption and access controls.
- Report significant organisational changes affecting data security to authorities.
- Compliance for Foreign Entities: Applies to international organisations processing data of Chinese citizens or entities.
Source: China Briefing
China Strengthens Anti-Money Laundering (AML) Law
China’s revised AML Law takes effect from 1 January 2025, enhancing its compliance with international standards and expanding its scope to include a wider range of predicate crimes, including wildlife trafficking.
Key Amendments:
- Risk-Based Approach: Financial institutions must adopt risk-based methods for managing money laundering risks.
- Expanded Predicate Crimes: Includes “other crimes” in compliance with international treaties.
- Obligations for Non-Financial Businesses: Defines regulatory responsibilities for non-financial businesses and their obligations in AML compliance.
- Focus on Beneficial Ownership: Introduces stricter transparency requirements.
- Strengthened Compliance for Financial Institutions: Enhances internal controls, customer due diligence, and suspicious transaction reporting protocols.
- Wildlife Crime: Emphasises using AML strategies to investigate financial networks linked to illegal wildlife trade.
The revised law also reinforces cross-border cooperation and aligns China with global AML practices.
Source: TRAFFIC
Featured photo by Road Trip with Raj on Unsplash
