Authoritative guidance: What exactly is the statutory overtime payment in 2024?
Many workers tend to focus on “how long they have been working” while they are facing overtime, and it is not clear whether their “blood money” has been withheld. In accordance with the Labour Law of the People ' s Republic of China and related provisions, overtime is calculated with a strict legal benchmark.
Key base figure: 21.75 days
At the legal level, the most important step in calculating overtime wages is the determination of “daily wages” and “hour wages”. The average monthly salary rate is set by the State at 21.75 days(365 days - 104 rest days) 12 months.
- Daily wage:Monthly wage income
- Hourly wage:Monthly wage income ÷ (21.75 x 8 hours)
2. Legal multiplier of three scenarios of overtime
Workday extended (1.5 times):Work continues beyond the normal 8-hour working hours and is paid at no less than 150 per cent of the salary.
Rest days worked overtime (2 times):That is, double rest days. If the employer has arranged overtime and cannot arrange for transfer (remuneration), a remuneration not less than 200 per cent of the salary is paid.
Official holidays work overtime (3 times):Official holidays such as spring and national holidays. Such overtime cannot be replaced by a transfer and must be paid at no less than 300 per cent of salary.
3. Common dispute resolution
Q: Basic wage: $5,000, but my pay is only $400,000. On which basis?
Response: The basis for calculation of overtime is usually determined on the basis of the salary rates agreed in the labour contract. Where the contract is not clear, it is usually calculated by reference to the salary entitlements actually received.
Q: Does the unit say that overtime can only be replaced and that it is legal to not pay?
Response: Overtime on workdays and holidays must be paid; Only “rest days (dual rest days)” are available for overtime, and the unit may choose to arrange for an equal break without overtime.