1. Start with the annual entitlement
Article 3 of the Paid Annual Leave Regulations sets three tiers by cumulative service: 5 days after 1 year and under 10; 10 days from 10 to under 20; 15 days from 20 years.
Cumulative service is the total across all employers, not service with the current one. Social insurance records, contracts and personnel files are used to establish it.
2. Pro-rating the leaving year
Article 12 of the Implementing Measures: on termination, days not taken in the current year are pro-rated by the calendar days elapsed in that year, and any fraction under one full day is not paid.
The formula is (calendar days elapsed in the current year ÷ 365) × annual entitlement − days already taken. For new joiners the pro-rating runs the other way, on remaining calendar days (Article 5).
3. Why the payment is an extra 200%
Article 10 requires 300% of daily wage for unused days, which includes the normal wage already paid. Because normal pay has already been received, the practical claim is the remaining 200%.
Daily wage is monthly wage ÷ 21.75, where monthly wage is the average of the last twelve months excluding overtime pay (Article 11).
4. Years with no entitlement
Article 4 removes the entitlement for the year where the employee:
- took winter or summer holidays longer than the annual leave entitlement;
- took more than 20 days of personal leave that was paid without deduction;
- with 1 to 10 years of service, took more than 2 months of sick leave;
- with 10 to 20 years of service, took more than 3 months of sick leave;
- with over 20 years of service, took more than 4 months of sick leave.
5. Written waiver
Where the employer arranged the leave and the employee asked in writing to give it up for personal reasons, the employer may pay only normal wages. Whether a waiver was genuinely voluntary depends on the evidence, which this tool cannot assess.
- Cumulative service 6 years → 5 days per year
- Left on 30 September → 273 calendar days elapsed
- No days taken → 5 × 273 ÷ 365 ≈ 3.74 → 3 days (fractions under one day are not paid)
- Average monthly wage excluding overtime CNY 10,000 → daily wage 10,000 ÷ 21.75 ≈ CNY 459.77
Result: Unused annual leave payment (extra 200%): 3 × 459.77 × 2 ≈ CNY 2,758.62
FAQ
What if I joined and left in the same year?
The entitlement is first pro-rated for the remaining calendar days on joining, then for the days elapsed when you leave; fractions under a full day are not paid.
Can annual leave be carried over?
Employers may carry leave over by one year where genuinely necessary. Leave still not arranged afterwards must be paid.
Is a "use it or lose it" policy valid?
It depends on whether leave was properly arranged and whether the employee declined in writing, together with local practice. A unilateral forfeiture clause does not automatically remove the payment obligation.
This site provides automated calculations and general information only. It is not legal advice.