In our last labor-related article, we briefly touched on the topic of statutory holidays. As the Mid-Autumn Festival and National Holidays draw near, DaWo has received some questions regarding holiday pay. We believe the following Q&A will be helpful.
1.How is the holiday arranged this year?
The Chinese Mid-Autumn Festival traditionally starts on the 15th day of eighth lunar month, which is October 1st on this year’s calendar (same date of Chinese National Holiday). Considering the “dual holiday” situation, the Chinese Government has arranged an 8-day holiday from October 1st to October 8th (the “Holiday”).
2.What if I have to work during the Holiday?
If you have to work during the Holiday, your employer may need to pay you overtime. According to PRC Labor Law, if employees work during statutory holidays, they are normally entitled to remuneration of at least 300% of his/her basic salary. When working on rest days without being given make-up leave days, they are entitled to no less than 200% of his/her basic salary.
3.How is the overtime payment policy implemented during this Holiday in October?
Whether and how the overtime payment applies depends mainly on: (a) what category of day (s) you work during the Holiday, and (b) what your working hour system is.
1)Two policies based on different nature of days in this “dual” Holiday
According to the Reply by Ministry of Human Resources and Social Security (the “Reply”) issued on September 18, 2020, the statutory holiday during the Holiday is from October 1st to October 4th. The period from October 5th to October 8th are rest days.
Based on the Reply, for employees with a Standard Working Hour System, if working on any day from October 1st to October 4th, the 300% policy shall be applied. If working on any day from October 5th to October 8th, make-up leave should preferably be arranged. If such leave compensation cannot be arranged, the 200% policy is then applied.
2)Your working time system matters
There are 3 systems under the current labor law framework in China: Standard Working Time System, Comprehensive Working Time System, and Flexible Working Time System.
For Standard Working Time System, the policy of 300% and 200% overtime payment shall be applied accordingly. However, it may be different for the other two working time systems:
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