China’s Working Hour System

China Working Hour System is the working hour law, policy, regulation etc. in China, which is divided into standard working hour system and special working hour system. China's working hour system mainly includes the following three types:

1. Standard working hour system: China generally implements the standard working hour system of 8 hours a day and 40 hours a week. Under this system, employees will work overtime on working days (extended overtime), rest days (weekends), and legal holidays; Companies are required to pay 150%, 200% and 300% overtime wages respectively.

365-104 (1 year 52 weeks *2)= 261 (days) /12 (months)=21.75(days)

2. Comprehensive calculation of working hour system: refers to the system of comprehensive calculation of working hours based on standard working hours and taking a certain period as a cycle, such as months, seasons, years, etc. In the period of the comprehensive calculation of working hours, the actual working hours on a given day may exceed 8 hours, but the total actual working hours shall not exceed the legal standard working hours. Otherwise, it is regarded as overtime work. Under the comprehensive working hour system, employees are paid overtime wages in two cases: working overtime on working days (extended overtime) and working overtime on legal holidays, and no overtime wages on rest days (weekends) are paid.

365-104 (1 year, 52 weeks *2)= 261 (days) -11 (days statutory holidays)= 250 (days) /12 (months)=20.83(days)

Taking the quarter as a comprehensive calculation of the working time cycle, the quarterly standard working time is 20.83*8*3=166.67*3≈500 (hours).

3. Irregular working hour system: It refers to the limitation of workers who have no fixed daily commuting time. It is a working time system adopted for workers who need to work continuously or are difficult to commute on time due to the special needs of production characteristics, the nature of work or the scope of responsibilities, and cannot apply standard time or need to operate flexibly. Under the irregular working hour system, there is no working day overtime (extended overtime), no rest day (weekend) overtime, and no overtime work on legal holidays. BUT Shanghai has an exception, in Shanghai, if workers under the irregular working hour system with OT on legal holidays, should be paid 300% overtime wages.

The above employees who implement the standard working hour system do not need to apply for the approval from the administrative department, and the employees who implement the comprehensive calculation working hour system and irregular working hour system, the enterprise needs to apply for administrative approval certificates, and specify the working hour system in the labor contract with the employees.