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2022-10-24

Cap of the Overtime Pay Rate?

An employee whose salary is more than the highest base of the social insurance. How to calculate his base of the overtime pay? is there any cap for the base?


The overtime pay calculate as below.

1. The base of the overtime pay
The employee’s regular monthly salary which does not include pays for special situation, for example annual bonus, commuting allowance, meal allowance, rent allowance, high-temperature allowance, overtime pay.

2. Hourly rate

Hourly rate: The base/21.75/8

-21.75 is the average monthly working days.
-8 is the working hours in one day.


3. Overtime pay calculation

-Workday: Hourly rate*ovetime working hour(s)*1.5

-Weekend: Hourly rate*ovetime working hour(s)*2 (or an equal time off instead of the payment)
-National holiday: Hourly rate*overtime working hour(s)*3


So as regulated, the overtime pay does not like the social insurance base which has a highest base. The base or the rate of overtime pay has no cap. But please note that the base of overtime pay can't less than the local minimum salary.

#Cap of the Overtime Pay Rate



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