The short answer: overtime pay is mandatory, with a uniform national rate. Minimum wages vary by region in China, but the overtime multipliers are national — employers must pay, and cannot simply wave them away with "flexible hours" or "responsibility systems".
Legal basis
- Article 44 of the Labor Law: extended working hours — no less than 150% of wages; rest-day work without compensatory leave — no less than 200%; statutory-holiday work — no less than 300%.
- Article 85 of the Labor Contract Law: failure to pay wages in full and on time leads to an order to pay, plus additional damages if overdue.
- Article 41 of the Labor Law: overtime is generally capped at one hour per day; for special reasons, up to three hours per day and 36 hours per month.
Key points
- Workday overtime: no less than 150%.
- Rest-day overtime: prefer compensatory leave; if not, no less than 200%.
- Statutory-holiday overtime: no less than 300%, and compensatory leave cannot replace the pay.
- Late or unpaid wages trigger orders to pay plus damages, and can hurt corporate credibility.
Practical tips
- Set up an overtime approval system and attendance records — key evidence for identifying overtime.
- "Flexible work" does not waive overtime pay; the test is whether working hours were actually extended.
For foreign employers, the hard parts are defining "overtime" and the pay base — especially for sales, field, and flexible roles. Spell out working hours and overtime rules in the contract and handbook, and keep attendance records. Need payroll and overtime compliance? Contact CRBPO.
About CRBPO
Founded in 2003, CRBPO (中瑞岳华) is a professional HR service provider with 20+ years in the China market, offering executive search, RPO recruitment, staffing & dispatch, global EOR, tax & accounting, and monthly HR subscription — across 30+ cities — to help foreign companies run compliant, efficient operations in China.
Follow us: WeChat Official Account "中瑞岳华科技服务" | LinkedIn; Hotline: 400-658-9852; Email: os@crbpo.com.