China’s labor law came into action in 1995. It was a legal framework to determine employment laws, hourly wages, and overtime payment policies. For many years, the country paid close attention to overtime work and made decent compensations to accommodate overtime workers. The rules of paying twice and thrice the contracted hourly pay have been revised recently. Over time workers in China can now get an increased hourly wage for each hour they spend at work. The rule also applies to public holidays and weekends. Let’s dive into the details to understand China’s overtime policy.
Recent Changes in Overtime Payment Regulations
Inflation is impacting even employees in countries like China. Workers faced problems with overtime payments disbursed by employers based on the country’s labor law. However, this year arrived with good news for Chinese workers. The government made a few changes to overtime policies to effectively accommodate employees.
The new policies have taken effect, and local workers see it as a grand gesture on the government’s end. We have added the details below to understand the changes better.
Increased Overtime Payments
The Chinese government had a specific protocol for calculating overtime payments for workers. The calculation applies to different categories (based on when an employee works overtime). While overtime multipliers encouraged employees to work efficiently during those extra hours at work, they also created a boundary for employers to discourage overtime work. When employers have to pay twice or thrice the payment for each hour an employee works overtime, they bear more costs.
The revised payments have surpassed the previous multipliers to accommodate emerging problems among employees.
Expanded Overtime Coverage
Recent revisions to the labor law of China have expanded the scope of overtime payments to different categories of employees. The new law covers a broader range of employees, including part-time and temporary employees. Workers can get decent wages for working overtime based on their employment contracts.
Expanding the overtime policy is a positive step to ensure the thorough protection of employee rights. Moreover, part-time workers can receive the same treatment as full-time employees do.
Improved Work-Life Balance
The Chinese government has directed employers in recent policy changes to understand the importance of work-life balance and promote a working environment that enables employees to maintain a decent balance. Employers are advised to take essential measures to promote work-life balance in China. Employees can enjoy reasonable working hours and have rest periods based on their employment contracts.
The government’s initiative to promote work-life balance speaks for employees’ rights and encourages more workers to seek employment in the country.
China’s overtime policy revisions cover multiple aspects of labor rights. Additional efforts are underway to make technology-driven changes to accommodate overtime payments in the evolving working environment. If you want to find more details about hourly wages in China and overtime multipliers, you may explore official sources for more details. To stay ahead of global compliance and international employment laws, visit Global People Strategist and schedule a demo to benefit from our platform.