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NEW REGULATION: Calculation for Determining Payment Based on Monthly Wage

16.01.08 10:11 Age: 13 yrs
NEW REGULATION: Calculation for Determining Payment Based on Monthly Wage

News from Xinhua on January 10 – The Ministry of Labor and Social Security issued on its official website today "Notice on Issues of Employees’ Average Monthly Work Hours In a Whole Year and the Calculations of Salary Thereof." The notice provides an adjustment of calculation method of employee work hour and the method of translation of salary thereof. The notice in its entirety is as follows:

Provinces, autonomous regions, municipalities, labor and social security department (bureau):

According to the "National Day and New Year holidays approach" (of the State Council Order No. 513), all citizens are eligible for holidays, the number of which as been increased from 10 days to 11 days. Accordingly, the means by which the calculation of average the number of days worked and wages has been adjusted as follows:

1. The calculation of working hours:

In days: 365 days -104 days (rest days) -11 days (holidays) = 250 days Days per quarter: 250 days ÷ 4 = 62.5 days quarter / quarter Days per month: 250 days ÷ 12 months = 20.83 days / month Calculation of the number of hours worked: the month, quarter, or years worked multiplied by eight hours.

2. The daily wage, the hourly wage commutation

According to Article 51 of the "Labor Law," employers should pay wages in accordance with the law; that is, the calculated daily and hourly wage without removing the wages for the eleven days’ statutory holiday. Accordingly, the daily wage and the hourly wage should be calculated as such: Daily wage: monthly wage ÷ the number of days of pay Hourly wage: monthly wage ÷ (pay on the number of days × 8 hours). Pay on the number of days = (365 days -104 days) ÷ 12 months = 21.75 days

3. The notice issued on March 17, 2000 by the Ministry of Labor and Social Security "Notice on Issues of Employees’ Average Monthly Work Hours In a Whole Year and the Calculations of Salary Thereof" (Lao She ministry [2000] 8) shall now be abolished.

 

Ministry of Labor and Social Security

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