Working Hours and Overtime
The standard working hours in China are 40 hours per week, typically 8 hours per day over a 5-day workweek.
Overtime Payment:
- Overtime on working day: 150%
- Standard working hours
- Comprehensive working hours
- OT on weekend: arrange compensative leave or 200%
- Standard working hours
- OT on Public holiday: 300%
- Standard working hours
- Comprehensive working hours
- Flexible working hours
*OT Maximum 36 hours per month.
*Flexible working hours & Comprehensive working hours NEED government pre-approval.
Compliance on Social Security
- WHEN
- From employment contract commencement month.
- WHERE
- Employment contract location or employee work location.
- Trend: 3 in ONE covered Beijing, Hangzhou, Shenzhen, and is expanding to the whole country.
- Links provides local social security administration through Links local partner.
- WHO
- Chinese nationality employee.
- Expatriate employee (First-tier cities).
- Work related injury insurance is required for part time employee in some cities (E.g. Shanghai).
Social Security Contributions – Example for Shanghai:
| Statutory Contributions | Base (CNY) | ER Contribution | EE Contribution |
|---|---|---|---|
| Pension | 7,384 – 36,921 | 16% | 8% |
| Medical (including maternity) | 7,384 – 36,921 | 9% | 2% |
| Unemployment | 7,384 – 36,921 | 0.5% | 0.5% |
| Work Injury | 7,384 – 36,921 | 0.2 – 1.9% | NA |
| Housing Fund | 2,690 – 36,921 | 5 – 7% | 5 – 7% |
| Supplementary HF (Optional) | 2,690 – 36,921 | 1 – 5% | 1 – 5% |
- Different base, rate, application procedure, enjoyment condition for different cities
- Base will be adjusted once a year
- Rate will be adjusted irregularly
Dispute Resolution
Labour disputes can arise from various issues such as contract terms, working conditions, or termination procedures. These disputes are resolved through:
- Mediation: An informal process to reach a mutually agreeable solution.
- Arbitration: A formal process where an arbitrator makes a binding decision.
- Legal Proceedings: Involves court intervention if mediation and arbitration fail.
Employers should establish clear grievance procedures to handle disputes effectively and maintain a positive work environment.
Additional Provisions
China’s labour law also includes provisions for:
- Non-Compete Clauses: Agreements that restrict employees from working with competitors for a specified period after leaving the company.
- Confidentiality Agreements: Protecting sensitive business information from being disclosed.
- Training Agreements: Requiring employees to reimburse training costs if they leave the company within a certain period.
Compliance and Enforcement
Compliance with China’s labour laws is enforced by local labour bureaus. Employers must:
- Conduct Regular Audits: Ensure that employment practices comply with current laws and regulations.
- Stay Informed: Keep up-to-date with changes in labour laws and adjust policies accordingly.
- Provide Training: Educate HR personnel and managers on labour law compliance and best practices.
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Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of China employment laws and regulations, please visit the official governmental websites.
Updated on: September 2025
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