Navigating Overtime Pay Regulations in China: Guidelines, Calculations, and Burden of Proof

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In China, overtime pay is categorized into three types based on distinct circumstances outlined in Article 44 of the “Labor Law of the People’s Republic of China.” Workers engaged in extended working hours beyond the regular schedule are entitled to wages not less than 150% of their regular wages. This rule applies to overtime pay for extended working hours. For work scheduled on rest days without compensatory rest, the rate is 200% of regular wages, covering overtime pay for rest days. Lastly, for work on statutory holidays, the rate is 300% of regular wages, encompassing overtime pay for statutory holidays. These regulations are closely tied to the standard working hour system, limiting daily working hours to eight and weekly hours to forty-four, with at least one day off per week and rest on statutory holidays.

Overtime pay calculations follow guidelines outlined in the “Notice of the Ministry of Labor and Social Security on the Calculation of Employees’ Annual Average Working Time and Wage Conversion.” Monthly working days are derived by subtracting 104 days (annual leave, weekends, and statutory holidays) from 365 days, resulting in an average of 21.75 working days per month. The daily and hourly wages are calculated accordingly. For overtime pay calculation, the formulas involve deductions from the previous month’s monthly income, division by monthly working days, and multiplication by the respective overtime rates and hours worked.

In labor disputes concerning overtime pay, the burden of proof lies with the party making the claim. Workers seeking overtime wages must provide evidence such as records of working hours and attendance logs. Notably, when evidence is within the employer’s control, the employer may face consequences for failure to provide required evidence. The principle of “the one who asserts must prove” ensures fairness, placing the responsibility on workers to substantiate their claims with accurate records and evidence. This principle upholds justice and protects the rights of workers in labor disputes.

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