China Clarifies Average Monthly Working Hours and Wage Calculation for Employees for the Full Year

On January 1^st,2025, the Ministry of Human Resources and Social Security (MOHRSS) has issued the Circular on Issues Related to Average Monthly Working Hours and Wage Calculation for Employees for the Full Year (the "Circular").

The Circular adjusts the methods for calculating employees' average working hours and wages throughout the year. In calculating the standard working time, the following formula applies:

• Annual working days: 365 days - 104 days (rest days) - 13 days (statutory holidays) = 248 days;
• Quarterly working days: 248 days ÷ 4 quarters = 62 days/quarter; Monthly working days: 248 days ÷ 12 months = 20.67 days/month;
• Working Hours: The number of working days in a month, quarter, or year multiplied by 8 hours per day.

Additionally, according to the Circular, employers should pay wages for statutory holidays in accordance with the law. When calculating daily and hourly wages, the 13 statutory holidays prescribed by the State should be included. Therefore, the daily and hourly wages will be calculated as follows:

• Daily wage: Monthly wage income ÷ monthly salary days;
• Hourly wage: Monthly wage income ÷ (monthly salary days × 8 hours);
• Monthly salary days: (365 days - 104 days) ÷ 12 months = 21.75 days.

The Circular is available here: https://www.mohrss.gov.cn/xxgk2020/fdzdgknr/zcfg/gfxwj/ldgx/202501/t20250101_533693.html