Understanding China's Overtime Framework
Overtime pay in China is regulated by Article 44 of the Labor Law, ensuring fair compensation for work beyond standard hours. The standard working hours in China are defined as 8 hours per day and 40 hours per week. When employees work beyond these hours, they are entitled to overtime pay, which varies based on the day the work is performed. For instance, weekday overtime is compensated at a minimum of 150% of the regular hourly wage, while work on rest days earns at least 200% if no compensatory day off is provided. During statutory public holidays, the rate increases to 300%.
Employers must consult with employees or trade unions before arranging overtime, and overtime work should not exceed 3 hours per day or 36 hours per month. The calculation base for overtime involves dividing the monthly basic salary by 21.75 (average working days per month) and then by 8 hours. This framework ensures employees are adequately compensated for their additional labor while maintaining legal compliance for employers.