Legislature approves 90-day maternity leave, seniority-based annual leave reform

Lawmakers have passed a labor law amendment raising maternity leave to 90 days and linking annual leave to seniority, after heated debate over when the maternity provisions should take effect and how to penalize employers who discriminate against pregnant workers.

The legislative amendment introduces a tiered annual leave system based on seniority, building on the existing statutory entitlement of six days per year. Under the new framework, employees will be entitled to one additional day of leave for each two-year period of service, up to a maximum of 12 days upon completion of 12 years of service. The right to annual leave is contingent upon completing a full year of employment.

Under the original proposal, the entire legislative amendment was set to take effect on January 1 next year.

However, during the committee review, lawmakers were inundated with appeals from pregnant employees with imminent due dates who sought immediate access to the enhanced benefits, with one legislator quoting a mum-to-be: “Some moms-to-be are saying they don’t dare to give birth yet, hoping to hold out for the extra 20 days.”

In response, the Secretary for Economy and Finance, Ng Wai Han, committed to accelerating the publication process, while cautioning that “there will inevitably be a time lag, and some pregnant women may already have delivered by then,” stressing that maternal and child health should remain the overriding priority.

The government agreed to implement the maternity leave changes on the day after publication, with annual leave rules to follow on January 1, as the Secretary pledged: “If the bill is passed, we will handle the next steps as fast as possible – we’ll aim to get it done in the shortest time.”

The bill received unanimous support from all lawmakers, with the government to subsidize 34 days of maternity leave pay from the law’s effective date through the end of this year, followed by a further 20 days of subsidy next year.

Several lawmakers issued a joint voting statement commending the government for actively responding to society’s long-standing demands for protecting the rights of pregnant employees and encouraging childbirth, while urging the authorities to expedite the promulgation process so that more eligible female employees could benefit as soon as possible.

However, some lawmakers expressed concern that the extended maternity leave could lead to discrimination against women in employment, noting that some employers might harbor reservations about hiring women of childbearing age due to the possibility of them taking maternity leave.

The authorities clarified that the Labor Relations Law explicitly stipulates that discrimination against pregnant or female employees constitutes a “minor offence” and would carry legal consequences.

Ng noted that no such complaints had been received in recent years and that the issue was “not a widespread or particularly concerning situation,” but stressed that, as the labor enforcement authority, they would continue to monitor the matter and strengthen publicity and education to ensure both employers and employees are aware of the relevant legal provisions.

The bill also proposes extending the maternity leave subsidy scheme to help small- and medium-sized enterprises (SMEs) cope with the cost pressures of the extended leave. Several lawmakers commended the subsidy arrangement but suggested expanding the scope to cover entities employing more than 100 workers and making the scheme permanent.

“The original plan has always been to subsidize SMEs with 20 days of leave,” Ng said, adding that the government would continue to listen to public views on whether to expand the subsidy scope through future administrative regulations.

She noted that when the government signaled its intention to adjust the policy earlier this year, many businesses had already responded positively: “Capable enterprises have already indicated their willingness to offer maternity leave beyond 90 days.” She reiterated: “Labor standards are only a baseline – if conditions allow, employers are absolutely free to provide more generous benefits to their employees.”

Several lawmakers also recommended in their voting statements that the government continue to review and improve employees’ rest rights through the Standing Committee for the Coordination of Social Affairs, noting that the annual leave system has not undergone a major revision for nearly 40 years, and urging the government to establish a timelier review mechanism to avoid large-scale adjustments after years of accumulation.

Some lawmakers also pointed out that while the increase from 70 to 90 days of maternity leave represented significant progress, it still fell short of the 98 days recommended by the International Labour Organization, and called on the government to actively study further increasing maternity leave days in the next phase, as well as exploring the possibility of raising paid paternity leave.

They urged the government to adopt a comprehensive family-friendly policy approach, including studying the establishment of a dedicated family-friendly fund with laws and subsidies working in tandem to encourage childbirth.