Circular on Issues Concerning the Annual Average Monthly Working Hours of Staff and Workers and the Pro Rata Calculation of Their Wages

(Issued by the Ministry of Labour and Social Security on January 3 2008.)

Lao She Bu Fa [2008] No.3

Labour and social security departments (bureaux) of the provinces, autonomous regions and municipalities directly under the central government:

Pursuant to the Measures on National Holidays for Festivals and Commemoration Days (Order of the State Council No.513), the number of holidays to which all citizens are entitled has been increased from the original 10 days to 11 days. Accordingly, the annual average number of working days and the pro rata method of calculating the wages of staff and workers have separately been revised as follows:

1. Calculation of working days and hours

Working days per year: 365 days – 104 days (rest days) – 11 days (statutory holidays) = 250 days.

Working days per quarter: 250 days ÷ 4 quarters = 62.5 days/quarter.

Working days per month: 250 days ÷ 12 months = 20.83 days/month.

Calculation of number of working hours: multiply the number of working days per month, quarter or year by 8 hours per day.

2. Pro rata calculation of daily wage and hourly wage

In accordance with Article 51 of the Labour Law, employers are required to pay wages for statutory holidays in accordance with the law, that is, the 11 days of statutory holidays specified by the state shall not be left out when doing a pro rata calculation of the daily wage or hourly wage. Accordingly, the pro rata calculation of the daily wage and hourly wage shall be as follows:

Daily wage: wage income for the month ÷ number of payable days in the month.

Hourly wage: wage income for the month ÷ (number of payable days in the month × 8 hours).

Number of payable days in the month = (365 days – 104 days) ÷ 12 months = 21.75 days.

3. The Circular on Issues Concerning the Annual Average Monthly Working Hours of Staff and Workers and the Pro Rata Calculation of Their Wages (Lao She Bu Fa [2000] No.8) issued by the Ministry of Labour and Social Security on March 17 2000 is repealed simultaneously.