Henan Province Pushes Companies to Honor Paid Leave Rules

Workers at a state-owned company in Henan Province erupted in cheers when they learned they could finally take vacations without losing pay.

Last week, authorities in central China's Henan Province issued a notice requiring companies to ensure employees take their full paid annual leave. The announcement sent waves of excitement across social media before officials temporarily retracted it Friday, citing "inaccurate wording" and promising a revised version soon.

The original notice tackled longstanding workplace problems head-on. It required employers to simplify leave approval processes and called on company leaders to set an example by taking time off themselves. The policy also clarified that all workers deserve the same paid leave, whether they're permanent employees, contractors, or temporary staff.

One Luoyang employee who has worked at her state-owned enterprise for 10 years told reporters she had been losing significant salary whenever she traveled. "Now the notice makes me feel more motivated to work," she said, already planning to combine her annual leave with October's National Day holiday for an extended break.

The Ripple Effect

Henan joins six other Chinese regions rolling out similar policies this year, including Tianjin, Zhejiang, and Shaanxi provinces. These initiatives stem from China's first five-year plan focused on boosting consumer spending, approved in July by the State Council.

The timing matters because only 57% of Chinese workers entitled to paid leave actually take it, according to 2025 data from the All-China Federation of Trade Unions. Many fear taking vacation could hurt their pay, performance reviews, or promotion chances.

The notices specifically aim to change what authorities call "unhealthy workplace norms." Several regions now encourage workers to combine leave with weekends and holidays, and prioritize parents during school breaks so families can travel together.

Not everyone has seen changes yet. Two private sector employees in Henan said their companies haven't issued any new policies, suggesting enforcement may vary across different workplace types.

National regulations since 2008 have guaranteed five days of paid leave for workers with one to 10 years of experience, 10 days for those with 10 to 20 years, and 15 days for those with over 20 years. But without routine inspections and accessible channels for workers to defend their rights, many companies simply ignored the rules.

China's Ministry of Human Resources and Social Security announced in January it would revise national regulations to strengthen enforcement. State media noted that paid leave has evolved beyond worker welfare into a key strategy for expanding domestic demand. When people have predictable time off, they're more willing to spend money on travel, dining, and experiences that fuel the economy.