Lao She Bu Fa [2008] No.3
To the Administration (Bureau) of Labor and Social Security of each municipality directly under the central government, autonomous region and province:
According to provisions as contained in the Measures on Holidays on National Festivals and Commemoration Days (Decree of the State Council of the People’s Republic of China, No. 513), the total days of the holidays on festivals for all the citizens have been increased from ten to eleven. Accordingly, the methods for calculation of the average monthly working days and wage for the employees during one year shall be amended as follows:
I. The Calculation of the Working Hours
Annual Working Days = 365 calendar days﹣104 days (rest days)﹣11 days (legal holidays and festivals) = 250 days per year
Quarterly Working Days = 250 days÷4 quarters = 62.5 days per quarter
Monthly Working Days = 250 days÷12 months = 20.83 days per month
The working hours shall be 8 hours, the prescribed working hours per one working day, multiplied by the annual, quarterly and monthly working days.
II. Conversion of the Daily and Hourly Wages
In accordance with the provisions of Article 51 of the Labor Law of the PRC, the employer shall pay wages to laborers in accordance with law when they have legal holidays, take leaves during periods of marriage or mourning, and participate in social activities in accordance with law. That is, the legal eleven-day holidays on festivals shall be taken into consideration while the conversion of the daily and hourly wages is being conducted. Therefore, the daily and hourly wages shall be worked out in ways stated below:
Daily Wages = Gross Monthly Wages ÷ paid days per month
Hourly Wages = Gross Monthly Wages ÷( paid days per month×8 hours)
Paid Days per month = (365 calendar days – 104 days)÷12 months = 21.75 days
III. The Notice of the Ministry of Labor and Social Security on the Calculation of Average Monthly Working Hours and Wages for the Employee per One Year as promulgated on March 17, 2000 (Lao She Bu Fa [2000] No.8) shall be simultaneously repealed.
By the Ministry of Labor and Social SecurityDated January 3, 2008
