Overtime Wages Calculation
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According to the Interim Provision on the Payment of Wages, overtime wage is calculated base on the wage standard specified in the labor contract. In case of employee whose wage is paid base on piecework, overtime wage should be calculated base on 150%, 200% or 300% of the piecework rate. However, if the local government has regulation on the calculation of overtime wage on statutory holiday, employing unit should pay according to the regulation. For example in Beijing, if there is agreement on the calculation of overtime wage on statutory holiday in the labor contract, the overtime wage should be paid no less than the standard setting for this current job/position in the labor contract. If there is requirement in the collective contract and the standard is higher than that in the labor contract, the overtime wage should be paid according to the collective contract. If neither the collective contract nor the labor contract has specified the calculation of overtime wage on statutory holiday, the overtime wage should be paid according to 70% of employee’s normal monthly salary. If the overtime wage calculated base on this method is lower than the local minimum wage standard, the overtime wage should be paid according to the minimum wage. This applies to employee whose wage is paid base on piecework.
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