Adjustment of China’s Fertility Policy and Response of Enterprises in China

In order to deal with the problem of an aging population, China further relaxed its fertility policy in late 2021, allowing a couple to have three children. To encourage childbearing, the Chinese government has amended the Population and Family Planning Law to provide legal protection and supporting measures for couples of childbearing age in the areas of childbearing, parenting and education, including supporting the establishment of parental leave where conditions permit.

Beijing, Tianjin, Shanghai, Zhejiang, Guangdong and other places have revised local laws and regulations on family planning to extend the original maternity leave and provide additional parental leave for parents who meet certain requirements.

Take Shanghai as an example, the decision on amending the Shanghai Regulations on Population and Family Planning, adopted on November 25, 2021, made it clear that in addition to the maternity leave stipulated by the state (98 days), the maternity leave that can be enjoyed has been increased from 30 days to 60 days. This means that female employees in Shanghai are entitled to 158 days of leave during childbearing.

The revised Shanghai Regulations on Population and Family Planning also stipulates that couples who give birth in accordance with the laws and regulations can each enjoy five days of parental leave each year before their children reach the age of 3. The salary during the parental leave shall be paid according to the salary due to one’s normal attendance. It is worth noting that, according to the official interpretation, the number of days of parental leave shall be calculated according to the number of children born in practice.

The revision of relevant laws and regulations not only provides more protection for couples in the birth of their children, but also puts forward new requirements for the personnel management of enterprises. When recruiting employees, signing labor contracts, formulating or revising internal rules and employee manuals, and carrying out labor management, relevant enterprises should take into account the impact of the revision of the above-mentioned laws and regulations, on the one hand, to ensure that the enterprise operates in accordance with the law, on the other hand, to ensure the normal production and operation order of the enterprise.

Useful tools:

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  2. link to Chinese official FDI guide website