Overtime Pay Calculation Standards and Enterprise Working Hours System Compliance

Overtime pay is a high-frequency claim in labor disputes. Enterprises must accurately understand overtime calculation rules under different working hours systems and establish compliant attendance and overtime management systems.

1. Standard Working Hours Overtime Pay

Standard working hours: 8 hours/day, 40 hours/week. Overtime pay standards: 150% for extended work on workdays; 200% for rest day work without compensatory time off; 300% for statutory holiday work (cannot be replaced by compensatory time off). Overtime calculation base: follows labor contract agreement, but not below minimum wage; if no agreement, determined at 70% of normal monthly attendance wage (varies by region).

2. Comprehensive Working Hours System

With labor administrative department approval, specific positions (e.g., transportation, railway, tourism) may implement a comprehensive working hours system, calculating total work time over a cycle of week, month, quarter, or year. Within the cycle, if total actual work time does not exceed total statutory standard work time, it is not considered overtime; excess is considered extended work time, paid at 150%. Work on statutory holidays is paid at 300%. Note: approval is required; unapproved systems are treated as standard working hours.

3. Irregular Working Hours System

With labor administrative department approval, senior management, field personnel, sales personnel, long-distance transport personnel, etc., may implement an irregular working hours system. Under this system, overtime pay provisions generally do not apply (whether statutory holiday work requires overtime pay varies by region; e.g., Shanghai requires 300%). Employees under irregular working hours still retain rest rights. Approval is also required.

4. Compliance Management Essentials

Enterprises are advised to: establish an overtime approval system (unapproved overtime not counted, but requires policy basis and publicity); retain attendance records for at least 2 years; clearly itemize overtime pay on payslips; reasonably arrange compensatory time off (rest day overtime prioritizes compensatory time); renew special working hours approvals before expiration. Avoid the risk of invalid "voluntary overtime" clauses; in overtime disputes, the employer bears the burden of proof.