Beginning January 1, 2026, Guangdong Province will implement new Minimum Living Security (Dibao) regulations. A key highlight of the reform is that reasonable employment-related expenses can be deducted from workers’ income when assessing eligibility for social assistance.
The update aims to provide fairer support for low-income workers by ensuring that work-related costs do not inflate their “apparent income” and exclude them from assistance programs.
Key Policy Highlights
Employment costs may be deducted from income
Necessary expenses for maintaining employment can now be excluded during income assessment. These may include commuting costs, work meals, uniforms, tools, mandatory training fees, and other essential job-related expenditures.
More accurate evaluation of household income
By deducting employment expenses, disposable income is assessed more realistically. Individuals who previously exceeded income thresholds on paper may now qualify for support.
Better protection for flexible workers and gig workers
Platform workers, part-time employees, and temporary laborers often face higher employment-related costs. The new rule provides improved support for this expanding workforce group.
Better integration of employment and welfare policies
The updated framework encourages continued labor participation by preventing scenarios where individuals lose Dibao eligibility simply because they remain employed.
Impact on Employers, HR Teams, and Payroll Compliance
Improved support for low-income employees
Companies may see higher workforce stability among lower-wage employees who benefit from the revised policy.
Greater importance of payroll documentation
HR teams should ensure clear salary breakdowns and payroll records, which employees may present when applying for income deductions under the new regulations.
Enhanced corporate responsibility
Transparent payroll practices help employees access government support and reflect positively on the employer’s compliance and employee-care standards.
Alignment with broader national employment reforms
The new rules reflect China’s ongoing efforts to strengthen protection for low-income and flexible employment groups.
How ChinaPayroll Supports Your Business
ChinaPayroll assists companies in maintaining clear payroll documentation, ensuring salary structures comply with local regulations, and helping employees understand income components that may qualify for Dibao deductions. Our payroll system and advisory service help employers stay aligned with provincial policy updates.
If you would like to explore salary calculations and minimum wage standards in other regions, please click here:
https://www.china-payroll.com/salary-calculator-amp-minimum-wages-for-more-cities/
Source：https://www.zsnews.cn/news/index/view/cateid/37/id/765485.html
