Overtime Details
Your normal monthly wage before overtime
Extended hours on normal working days, e.g. evenings
Weekend or rest day work without compensatory leave
Work on the 13 statutory paid holidays
Rest day work can be swapped for comp time; holiday work cannot
Overtime Pay Result
How China overtime pay works
Multipliers come from Article 44 of the Labor Law: at least 150% of the hourly wage for extended hours on working days, at least 200% for rest day work when no compensatory leave can be arranged, and at least 300% for statutory holiday work. Statutory holiday overtime is the only category that cannot be replaced by compensatory time off.
Hourly conversion: the standard reference is monthly salary ÷ 21.75 paid days ÷ 8 hours (per the 2008 MHRSS monthly wage-day rule). 21.75 = (365 − 104 rest days) ÷ 12; statutory holidays remain paid days and are not deducted.
Legal caps: under Article 41, overtime generally cannot exceed 3 hours per day or 36 hours per month, even with employee consent. Employers who exceed the caps face administrative penalties and back-pay claims.
Calculation base: overtime is computed on the wage actually earned, and agreed rates cannot fall below the local minimum wage. A contract clause that waives overtime pay entirely is generally invalid; special rules apply to piece-rate and commission workers.
Hourly conversion: the standard reference is monthly salary ÷ 21.75 paid days ÷ 8 hours (per the 2008 MHRSS monthly wage-day rule). 21.75 = (365 − 104 rest days) ÷ 12; statutory holidays remain paid days and are not deducted.
Legal caps: under Article 41, overtime generally cannot exceed 3 hours per day or 36 hours per month, even with employee consent. Employers who exceed the caps face administrative penalties and back-pay claims.
Calculation base: overtime is computed on the wage actually earned, and agreed rates cannot fall below the local minimum wage. A contract clause that waives overtime pay entirely is generally invalid; special rules apply to piece-rate and commission workers.
Statutory overtime rates
Under the Labor Law and the Regulations on Payment of Wages, employers must pay overtime premiums at the following rates:
- Weekday overtime (extended hours): Not less than 150% of the normal hourly wage
- Rest day overtime (weekends): Not less than 200% of the normal daily or hourly wage, unless compensatory rest is arranged
- Statutory holiday overtime: Not less than 300% of the normal daily or hourly wage (compensatory rest cannot substitute for pay)
How the hourly/daily wage base is calculated
The base wage for overtime calculation is typically derived from the monthly salary:
- Daily wage = Monthly salary ÷ 21.75 (the statutory average working days per month)
- Hourly wage = Daily wage ÷ 8 hours
- The monthly salary used is generally the employee's normal contractual salary, which may include base salary and fixed allowances but often excludes performance bonuses and one-time payments
Legal limits on overtime hours
Overtime is subject to statutory limits under the Labor Law:
- Maximum 1 hour of overtime per day under normal circumstances
- Maximum 3 hours per day if special reasons require it, provided the employee's health is protected
- Maximum 36 hours of overtime per month
- Overtime must be voluntary and cannot be forced
These limits may be relaxed for special industries or emergency situations as specified by the state.
Special work hour systems
Two alternative work hour systems exist that affect overtime calculations:
- Comprehensive working hours system (综合计算工时制): Overtime is calculated on a weekly, monthly, quarterly, or yearly basis. Hours exceeding the statutory total for the period are treated as 150% overtime. Statutory holiday work is always 300%.
- Flexible working hours system (不定时工时制): Generally no overtime pay is required for weekday or rest day work, but statutory holiday work typically still requires 300% pay in many localities.
Both systems require prior approval from the local labor administrative department.
Record-keeping and enforcement
Employers are required to maintain accurate records of working hours. Employees should keep their own records of overtime (screenshots of attendance systems, WeChat records, emails). If overtime pay is not paid correctly, employees can file complaints with the labor inspection bureau or pursue arbitration within 1 year from the date the wages should have been paid.
❓ FAQ
How is the China overtime hourly rate calculated?
The standard conversion is monthly salary ÷ 21.75 days ÷ 8 hours. The 21.75 figure is (365 − 104 weekly rest days) ÷ 12 paid months, so statutory holidays stay as paid days and are not deducted from the divisor.
What are the overtime multipliers in China?
Weekday extended hours are paid at no less than 150% of the hourly wage. Rest day work is paid at 200% unless compensatory time off is arranged. Statutory holiday work is paid at 300% and cannot be swapped for comp time.
Can I take time off instead of statutory holiday overtime pay?
No. Compensatory leave can replace pay for rest day overtime, but statutory holiday overtime must be paid at 300% in cash. Most local authorities treat the 300% as payable on top of the normal monthly salary, since holidays are already paid days off.
Is there a legal cap on overtime hours in China?
Yes. Under Article 41 of the Labor Law, overtime generally cannot exceed 3 hours per day or 36 hours per month, even with the employee's consent, unless the employer obtains special approval for a special working-hours system.