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Guide to Working Hours Systems in China

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Guide to Working Hours Systems in China

Working hours systems serve as the core foundation for regulating enterprise employment and protecting workers' rights and interests, directly bearing on core rights such as working hours, overtime pay, and rest and leave entitlements. China’s statutory working hours systems fall into three categories: the standard working hours system (the basic system), and the comprehensive working hours system and non-fixed working hours system (special supplementary systems). These three differ significantly in applicable scope, overtime calculation, and rest rules. Clarifying the core requirements of each system is a prerequisite for enterprises to employ compliantly and a key for workers to safeguard their rights in accordance with the law.

  1. Standard Working Hours System

    The standard working hours system is the basic form of working hours explicitly stipulated by China’s labor laws and the default employment standard for enterprises. It is widely applied to most ordinary positions, including administrative staff, clerks, technical R&D personnel, educators, and other non-special positions.

    (1)
    Core Rules

    (a) Working Hours: No more than 8 hours per day, no more than 40 hours per week, and workers shall be guaranteed at least 24 consecutive hours of rest per week.

    (b) Overtime Limits: Normally, extended working hours shall not exceed 1 hour per day; for special reasons, extended hours shall not exceed 3 hours per day, and total extended hours shall not exceed 36 hours per month (except for emergency rescue, disaster relief, and other special circumstances).

    (c) Overtime Pay Calculation:
    • Overtime on normal workdays: Overtime pay shall be paid at 150% of the worker’s hourly wage rate.
    • Overtime on rest days: Compensatory leave shall be arranged first; if compensatory leave cannot be arranged, overtime pay shall be paid at 200% of the worker’s daily or hourly wage rate.
    • Overtime on statutory holidays: Overtime pay shall be paid at 300% of the worker’s daily or hourly wage rate, and compensatory leave may not be substituted.

    (2)
    Core Summary

    The standard working hours system features fixed schedules and clear rules, with straightforward overtime pay calculation. It provides the fullest protection for workers’ rights to rest and labor remuneration.

  2. Comprehensive Working Hours System

    The comprehensive working hours system is designed for special positions with irregular but controllable total working hours. Its core is to calculate working hours comprehensively over a set period, rather than on a daily or weekly basis. Enterprises implementing this system must submit an approval application to the local labor administrative department in advance.

    Unauthorized implementation shall be deemed invalid and treated as the standard working hours system in dispute resolution.

    (1)
    Applicable Positions (Statutory Scope)

    It mainly applies to three categories of positions:
    • Positions requiring continuous operations in industries such as transportation, railways, postal services, aviation, and water transportation.
    • Positions in industries are restricted by seasons and natural conditions, such as geological exploration, construction, tourism, sugar refining, and fishery.
    • Other positions suitable for concentrated work and concentrated rest, such as security guards and warehouse attendants.

    (2)
    Core Rules

    (a) Working Hours: Working hours are calculated comprehensively on a weekly, monthly, quarterly, or yearly cycle. The average daily and average weekly working hours shall be basically consistent with the provisions of the standard working hours system and shall not exceed the statutory total duration.

    (b) Overtime Rules: Daily or weekly working hours may exceed 8 hours or 40 hours within the calculation cycle; any part exceeding the standard total working hours in the cycle shall be regarded as extended overtime. Work on rest days is not separately calculated for overtime pay (included in the comprehensive cycle calculation). Working on statutory holidays shall be paid at 300% of the wage rate in accordance with the statutory holiday overtime rules of the standard working hours system.

    (c) Supplementary Requirements: For the comprehensive working hours system with a yearly cycle, total annual working hours shall not exceed 2,000 hours; any excess shall be paid as extended overtime at 150% of the wage rate. For positions with physical labor intensity of Level III and above, continuous daily working hours shall not exceed 11 hours, and at least one day of rest per week shall be guaranteed.

    (3)
    Core Summary

    The comprehensive working hours system adapts to special industry positions and adopts a "concentrated work, concentrated rest" model. There is no separate overtime pay for rest days, while statutory holiday overtime pay is implemented as required. The core prerequisite is obtaining approval from the labor administrative department.

  3. Non-Fixed Working Hours System

    The non-fixed working hours system eliminates fixed commuting time limits and applies to positions where work results cannot be measured by standard working hours. It also requires enterprises to obtain approval from the labor administrative department in advance; unauthorized implementation is prohibited and shall be treated as the standard working hours system.

    (1)
    Applicable Positions (Statutory Scope)

    It mainly includes three categories of positions:
    • Senior management personnel, field staff, sales personnel, etc., of enterprises.
    • Long-distance transport drivers, taxi drivers, some porters at railways, ports, and warehouses, etc.
    • Other positions with special work require flexible operations and unfixed working hours, such as couriers and field service staff.

    (2)
    Core Rules

    (a) Working Hours: No fixed commuting time; workers arrange work independently according to tasks, free from daily and monthly overtime limits. Enterprises shall reasonably set labor quotas or assessment standards to protect workers’ rights to rest and leave.

    (b) Overtime Pay Calculation: No overtime pay for work on normal workdays or rest days; work on statutory holidays shall be paid at 300% of the worker’s daily or hourly wage rate (some regions have special provisions, subject to local labor administrative department policies).

    (c) Supplementary Requirements: Positions implementing the non-fixed working hours system must be consistent with those recorded in the labor administrative department’s approval; the applicable scope shall not be expanded without authorization. Wages are mostly paid in a "base salary + commission" model, linked to workload and work results rather than working hours.

    (3)
    Summary

     The non-fixed working hours system is highly flexible with no fixed attendance requirements. Overtime pay is only calculated for statutory holidays. The applicable premise is that the position meets the statutory scope and approval is obtained.

  4. Key Reminders

    (1)
    Special working hours systems (comprehensive + non-fixed) require approval: If an enterprise implements a special working hours system without approval from the labor administrative department, all labor disputes shall be handled in accordance with the standard working hours system, and workers may claim all overtime pay in accordance with the law.

    (2)
    Explicit agreement in labor contracts: The working hours system is a mandatory clause in labor contracts. Enterprises must clearly inform workers of the applicable working hours system and shall not change it without authorization; workers have the right to refuse unauthorized changes to the working hours system by enterprises.

    (3)
    Overtime pay shall not be "one-size-fits-all": The three working hours systems have significantly different overtime pay calculation rules. Enterprises shall not use a single standard for unified calculation. Workers shall clarify the working hours system applicable to their positions to avoid infringement of their rights and interests.

    Working Hours Type

    Applicable Scenarios

    Core Features

    Overtime Pay Rules

    Standard Working Hours System

    Most ordinary positions (admin, clerks, etc.)

    8 hours/day, 40 hours/week, fixed schedule

    150% on normal days, 200% on rest days (compensatory leave first), 300% on statutory holidays

    Comprehensive Working Hours System

    Continuous operations, season-restricted positions (security guards, construction workers, etc.)

    Hours calculated by cycle, concentrated work & rest

    150% for excess hours on cycle, no pay for rest days, 300% for statutory holidays

    Non-Fixed Working Hours System

    Flexible operations, unmeasurable by standard time (senior executives, couriers, etc.)

    No fixed schedule, self-arranged work

    No pay for normal days/rest days, 300% for statutory holidays


    The core of applying working hours systems is position suitability, with no superiority or inferiority. Regardless of the working hours system adopted, enterprises must strictly abide by relevant labor laws and regulations to protect workers’ rights to rest and legitimate labor remuneration. If workers find that enterprises have violated laws and regulations—such as implementing special working hours systems without approval or failing to pay overtime pay in accordance with regulations—they may retain relevant evidence (labor contracts, attendance records, etc.) and safeguard their rights through labor arbitration, litigation, and other legal means.

Disclaimer

All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.

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