Full-time employees should be paid their salary at least once a month. Employees’ monthly salaries should not be less than the minimum wage published by local governments. An employer should pay salaries to its employees in accordance with the law for official public holidays, marriage or bereavement leave and for any periods when they participate in social activities such as exercising the statutory election rights. Furthermore, employers may arrange compensation and bonus policies according to the law and their own needs. These policies may include performance bonuses, annual bonuses, stock options, etc. Individual income taxes and other taxes payable by employees are the responsibility of employees. However, employers should withhold such amounts from any payments and pay such amounts to the tax authority on behalf of their employees.
Maximum Working Week
The maximum standard working hours in China are 8 hours per day and 40 hours per week for employees working under the standard working hour system. An employer must ensure that every employee has at least one rest day each week.
In some circumstances, an employer may extend the working hours of an employee after consulting with the trade union and the employee concerned. Specifically, hours can be extended to accommodate changes in production or business operations. Generally however, overtime should be limited to one hour per day. In special circumstances, the overtime should be capped at three hours per day, provided that the employee’s health is not affected and the total monthly overtime does not exceed 36 hours. Employees working under the flexible working hour system are not entitled to overtime unless otherwise provided by local government regulations.
Employer’s Obligation to Provide a Healthy and Safe Workplace
According to PRC Labor Law, an employer must establish a sound labor safety and hygiene system and strictly implement State rules and standards of labor safety and hygiene, conduct labor safety and hygiene education among its employees, prevent accidents and reduce occupational hazards.
Employees are entitled to complain or report to competent work safety supervisory authority regarding their employer’s occupational disease, hazards, accidents or any other violations as defined by law.