Shanghai Enterprise Wage Payment Method

These Measures are formulated in accordance with the Labor Law of the People's Republic of China and relevant laws and regulations, and in light of the actual situation of this Municipality, in order to safeguard the rights of workers to obtain labor remuneration through labor and to regulate the wage payment behavior of enterprises.
1. These Measures apply to all types of enterprises and individual economic organizations (hereinafter referred to as employers) within the administrative area of ​​this city and the workers who have formed labor relations with them.

2. The wages referred to in these Measures refer to the remuneration paid to workers in the form of money by employers in accordance with the provisions of the state and this city, that is, the monetary income included in the total wage statistics.

3. Wages shall be paid in legal tender.

4. If an employer pays wages through a bank, the wages must be transferred to the employee’s personal account on time.

If the employer pays wages directly, the wages shall be paid to the employee in person and the employee shall sign for the wages. If the employee cannot collect the wages in person for some reason, he or she may entrust a relative or other person to collect the wages on his or her behalf.

5. The employer shall record in writing the amount, items, time, name, etc. of the wages paid to the employee, and keep it for future reference in accordance with relevant regulations. Regardless of the form in which the employer pays wages, the employer shall provide the employee with a personal wage list.

6. Employers shall pay wages at least once a month. The specific date of wage payment shall be agreed upon by the employer and the employee. If wages are paid through a bank on a statutory holiday or rest day, payment of wages shall not be postponed; if wages are paid directly, they shall be paid in advance.

For workers who are paid on an annual salary basis or according to an assessment period, the employer shall prepay their wages every month at a rate not lower than the minimum wage and settle the accounts at the end of the year or at the end of the assessment period.

7. If an employer and an employee terminate or cancel a labor contract in accordance with the law, the employer shall pay the employee's wages in one lump sum when completing the formalities with the employee.

8. If a worker participates in social activities in accordance with the law during the statutory working hours, the employer should treat the worker as having provided normal labor and pay wages.

IX. During the period of marriage leave, bereavement leave, family visit leave and other holidays enjoyed by employees in accordance with the law, the employer shall pay holiday wages in accordance with national regulations. The calculation base of holiday wages shall be determined according to the following principles:

(I) If there is an agreement in the labor contract, the wage shall be determined according to the wage standard corresponding to the employee's position (job) as agreed in the labor contract, which shall not be lower than the wage standard corresponding to the employee's position (job) as agreed in the labor contract. If the standard determined in the collective contract (collective wage agreement) is higher than the standard agreed in the labor contract, the standard in the collective contract (collective wage agreement) shall be used for determination.

(2) If neither the labor contract nor the collective contract provides for it, it may be determined through collective wage negotiation between the employer and employee representatives, and the result of the negotiation shall be a collective wage agreement.

(3) If there is no agreement between the employer and the employee, the calculation base of holiday wages shall be uniformly determined based on 70% of the employee's normal monthly salary for the post (position) in which he/she is employed.

The base amount of holiday wages calculated according to the above principles shall not be lower than the minimum wage standard stipulated by this city. If there are other provisions in laws and regulations, they shall prevail.

10. If the employer is unable to pay wages on time due to production and operation difficulties and capital turnover is affected, the employer may postpone the payment of wages to employees within one month after reaching an agreement with the labor union of the employer. The time for delayed payment of wages should be notified to all employees and reported to the competent department for record. If there is no competent department, it should be reported to the municipal, district or county labor and social security administrative department for record.

11. After a labor relationship is established between an employee and an employer, if the employee provides normal labor during the probation and internship period, the wages paid by the employer shall not be lower than the minimum wage standard stipulated by this city.

12. If the employer stops work or production within one wage payment cycle, it shall pay the laborer's wages according to the agreed standard. If it exceeds one wage payment cycle, the employer may pay wages according to the new standard agreed by both parties based on the labor provided by the laborer, but it shall not be lower than the minimum wage standard stipulated by this city.

13. If an employer arranges employees to work outside the statutory standard working hours according to actual needs, the employer shall pay wages according to the following standards:

(1) If an employer arranges workers to work overtime beyond the legal standard working hours, the employer shall pay wages at a rate not less than 150% of the worker's hourly wage rate;

(2) If workers are arranged to work on rest days but no compensatory rest days are arranged, wages shall be paid at a rate not less than 200% of the workers' daily or hourly wage;

(3) If workers are arranged to work on statutory holidays, wages shall be paid at a rate not lower than 300% of the worker's daily or hourly wage.

If an employer arranges workers who are paid on a piece-rate basis to work beyond the statutory standard working hours in accordance with the law, the piece-rate price shall be adjusted accordingly based on the above principles.

For employers who have been approved by the labor and social security administrative department to implement a comprehensive working hours system, if the comprehensive working hours of employees exceed the statutory standard working hours, it shall be deemed as overtime, and the employer shall pay the employees the wages for the overtime work in accordance with the provisions of paragraph (1) of this article; if the employer arranges employees to work on statutory holidays, the employer shall pay the wages in accordance with the provisions of paragraph (3) of this article.

If an employer that implements an irregular working hours system approved by the labor and social security administrative department arranges workers to work on statutory holidays, it shall pay wages in accordance with the provisions of paragraph (3) of this article.

14. Calculation of daily overtime wages: the calculation base determined in accordance with the principles of Article 9 of these Measures, divided by the average number of regular working days per month, 20.92 days; calculation of hourly wages: daily wages divided by 8 hours.

The daily wage calculation for sick leave, personal leave, etc. within the regular working days is: the calculation base determined according to the principles of Article 9 of these Measures, divided by the payroll day of the month in which the leave occurs. The payroll day refers to the regular working days stipulated by the state plus the statutory holidays.

15. If a worker who has been sentenced to probation or suspended sentence by the People's Court continues to work in his original unit, the employer shall pay the worker's wages in accordance with the terms of the labor contract or the rules and regulations of the unit.

16. If a worker violates labor discipline or rules and regulations and is punished by the employer and has his or her wages reduced, the reduced wages shall not be lower than the minimum wage standard stipulated by this city.

17. If the labor contract is suspended due to the employee being detained for suspected crimes or other objective reasons, the employer shall no longer pay the employee's wages, except as otherwise provided by laws and regulations or agreed upon in the labor contract.

18. If an employer goes bankrupt and owes wages to employees, it shall repay the wages in accordance with the order of repayment prescribed by the Enterprise Bankruptcy Law of the People's Republic of China and the Company Law of the People's Republic of China.

19. Employers shall not deduct wages from employees. Employers may deduct wages if any of the following circumstances occurs:

(1) Paying individual income tax that should be paid by the individual workers;

(2) Paying on behalf of the workers various social insurance expenses that should be borne by the workers themselves;

(3) Child support and maintenance payments required to be withheld in court judgments or rulings;

(4) Other expenses that may be deducted from workers' wages as provided by laws and regulations.

20. If an employer deducts or delays paying employees' wages without reason, or refuses to pay employees' wages for overtime work, in addition to paying the employees' wages in full within the prescribed time, the employer shall also pay compensation of 25% of the deducted or delayed wages.

21. If an employer pays a worker a wage lower than the city's minimum wage standard, the employer must make up the difference and pay compensation equal to 25% of the difference.

22. If a worker causes economic losses to the unit due to personal reasons, and the employer requires compensation from the worker in accordance with the law and needs to deduct compensation from the worker's wages, the deducted amount shall not exceed 20% of the worker's monthly wage income, and the remaining wages after deduction shall not be lower than the minimum wage standard stipulated by this city.

23. If an employer unilaterally terminates the labor relationship of an employee, causing a labor dispute, and the labor dispute arbitration department or the People's Court decides to revoke the original decision of the employer, the employer shall pay the employee's wages during the arbitration and litigation period. The standard is: the average monthly salary of the employee in the previous 12 months of the position in the month when the employer makes the decision multiplied by the number of months of suspension of salary. If both parties are responsible, they shall bear the corresponding responsibility according to the degree of responsibility.

24. For workers with part-time labor contracts, the hourly wage shall be determined according to the agreement between the employer and the worker, but shall not be lower than the hourly minimum wage standard stipulated by this city.

25. Employers and employee representatives may, based on the principles set forth in these Measures and after collective consultation, formulate their own wage payment methods and inform all employees of the unit.

26. If a labor dispute arises between an employee and an employer over wage payment, the parties may apply to the labor dispute arbitration authority for arbitration in accordance with the law. If they are dissatisfied with the arbitration award, they may file a lawsuit in the People's Court.

27. These Measures shall be implemented from April 1, 2003. The original "Interim Measures for the Payment of Wages in Shanghai Enterprises" shall be abolished. In case of any inconsistency between the original relevant provisions and these Measures, the provisions of these Measures shall prevail.