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Human Resources and Payroll in China 2016-2017 (5th Edition) -
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3.2 Work Hour Systems and
Overtime Payments
Overtime can be expensive for employers. In China, employees are grouped into three categories
working under different systems – the standard work hour system, the comprehensive work hour
system and the non-fixed work hour system.
The standard work hour system requires that an employee’s normal working day should not exceed
eight hours, and that the normal working week not exceed 40 hours. Each employee should be
guaranteed at least one rest day. Most white-collar workers in China now operate under a five-day
working week, although some domestic companies still utilize a six-day working week model.
The comprehensive work hour system does not refer to one week as the key factor in regulating
working hours. Instead, it takes a set period (usually a month, but not necessarily) as the base to
calculate the number of working hours. Although the distribution of hours worked during this
period may be quite irregular, the average number of working hours per day and per week should
roughly correspond to the levels set out in the standard work hour system. Please note that before
a company can implement this system, it must first submit its plan to the local Labor Bureau and
receive approval. This system is normally used for blue-collar workers or other workers that require
irregular shifts.
Under the non-fixed work-hour system, employees do not generally receive overtime payments,
because measurement of the time spent working is considered to be impractical. A company
implementing this system for some of their employees should receive prior approval from the local
Labor Bureau.
Basic hourly salary is calculated by taking the monthly pay of the employee and dividing it by 174
(average number of working hours in the month).
These are the mandatory minimum percentages paid to employees for the overtime that they
work, although some companies offer their employees higher rates than the statutory minimums.
Overtime Under the StandardWork Hour System
Time of Work
Percentage of Hourly Salary
Extra hours worked on weekdays
150%
Hours worked on weekends
200%
Hours worked on public holidays
300%
“ Overtime regulations in China are complex and often seen as controversial. Employers must therefore understand the legalities that govern overtime in China in order to avoid potential discrepancies with the law. ” Nicole Jiang Assistant Manager Human Resources Dezan Shira & Associates Dalian Office