Working hours

On the whole, China adopts a standard system of eight-hour workdays and 40-hour work weeks. If the standard system cannot be implemented due to limitations resulting from the nature of the work or the characteristics of production, systems of irregular working hours and comprehensive working hour calculation are permissible upon approval.

Employers shall ensure that their employed laborers have at least one day off every week. To meet the needs of production and operation, employers are allowed to extend their employees' working hours following consultation with the trade union and with the employee. The extended working time is generally not to exceed one hour per day; if employers need to further extend working hours under special circumstances, the extended working time shall not exceed three hours per day or 36 hours per month in total; furthermore, extended working hours are only allowable on the condition that they do no harm the health of employees.

Salary

Foreign-invested enterprises must be in line with the national and local minimum salary standards. The increase in the average salary of the employees is based on the development of the enterprise. Based on the company's annual return, labor productivity, as well as the local urban consumer price index and wage guidelines, the payroll is determined by the board of directors or through collective negotiation of the enterprise.

Laborers are entitled to overtime pay:

① If the laborer is required to extend working hours beyond the legal standard in accordance with laws, he/she shall be paid no less than 150 percent of the hourly wage stipulated in the labor contract;

② if the laborer is required to work on a rest day (usually Saturday and Sunday) in accordance with laws and compensatory leave cannot be arranged, he/she shall be paid no less than 200 percent of the hourly or daily wage stipulated in the labor contract;

③ if the laborer is required to work in legal holidays in accordance with laws, he/she shall be paid no less than 300 percent of the hourly or daily wage stipulated in the labor contract.

Holidays and vacations

There are 11 statutory paid holidays every year in China: New Year's Day (one day), Spring Festival (three days), Tomb-Sweeping Day (one day), Labor Day (one day), Dragon Boat Festival (one day), Mid-Autumn Festival (one day), and National Day (three days).

Laborers who have worked continuously for at least 12 months are entitled to paid annual leave. If a laborer has worked for more than one year and less than 10 years in total, he/she is entitled to five days' annual leave; if one has worked for between 10 and 20 years, he/she is entitled to 10 days' annual leave; if one has worked for a total of 20 years or longer, he/she is entitled to 15 days' annual leave. National statutory holidays and rest days shall not be deducted from the days of annual leaves. Moreover, workers also enjoy marriage leave, bereavement leave in accordance with laws.

Social insurance

China's social insurance mainly includes basic endowment insurance, basic medical insurance, employment injury insurance, unemployment insurance, and maternity insurance. Foreign-invested enterprises and their employees shall pay social insurance premiums in accordance with laws to ensure that their employees may receive material assistance from the government and society in cases of old age, illness, work injury, unemployment, and childbirth. Qualified foreign-invested enterprises may set up enterprise annuities according to regulations as further efforts to better safeguard the interests of employees.

Foreign nationals employed in China shall be covered by China's social insurance in accordance with laws. If a person employed in China is from a country that has signed bilateral or multilateral agreements on social insurance with China, his/her social insurance shall be handled in accordance with the provisions of the agreements.