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Living in China|Double Wage Rules in China: Key Updates

Living in China|Double Wage Rules in China: Key Updates Wise 跨境汇款
2025-11-28
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2025年11月28日刊|第6篇,共6篇


For years, China’s “double wage” rule has been a headache for employers. The law was clear in its intent but fuzzy on the details: sign a written labor contract within one month of hiring, or pay the price. But what exactly was the price? Ambiguity led to confusion and inconsistent court rulings across the country.


That fog has finally lifted. On September 1, 2025, the Supreme People’s Court’s “Judicial Interpretation II on Labor Disputes” took effect. This new, authoritative guide brings much-needed clarity, spelling out when double wages are due, when employers are off the hook, and—crucially—how to calculate them correctly.


No Fault, No Fines: When Employers Are Exempt

The old rule was notoriously strict: no written contract after one month? Pay double. It often didn’t matter why the contract wasn’t signed. The new interpretation injects a heavy dose of common sense.


Article 7 states that employers are not liable for double wages if they can prove any of the following:
Force Majeure

A major event like an earthquake or government lockdown physically prevented the signing.


Employee’s Fault

The worker intentionally refused to sign or was grossly negligent (a classic example being an HR manager who “forgets” to sign their own contract).


Legal Exceptions

Other reasons specifically outlined by law.


The key takeaway is evidence. Employers must now be diligent in keeping records—like emails, instant messages, or official notices—that demonstrate a good-faith effort to sign the contract, which was thwarted by one of these specific circumstances.


Automatic Extensions: You’re in the Clear

Sometimes, the law automatically extends a labor contract. Common examples include when a female employee is pregnant, on maternity leave, or when a worker is undergoing prescribed medical treatment.


Under Article 8, if a contract expires but is legally extended, the employer is not liable for double wages during this extension period. This rule aligns with logic—the employee’s rights remain fully protected by the automatic extension, so there’s no justification for a punitive double wage penalty.



Deemed Contracts: It’s Just a Formality Now

Here’s a specific scenario: if an employer fails to sign a written contract with an employee for a full year, the law automatically “deems” an open-ended contract to exist.


Article 9 clarifies this situation: the employee has the right to request a written document to formalize this “deemed” relationship. However, they cannot claim double wages for the period it was already considered to exist. This distinction reinforces that the double wage rule is a punishment for not signing a contract in the first place, not a windfall bonus for employees who already have legal protection.


Cracking the Calculation Code

Previously, calculating double wages for partial months was a messy affair, with different courts using different methods. Judicial Interpretation II standardizes the math in Article 6:


For a Full Month

The double wage is simply equal to one month’s salary.


For a Partial Month

Calculate based on the actual working days in that specific month.


This last point is crucial. “Actual working days” means the days the employee actually worked, excluding weekends and statutory holidays. It’s important not to confuse this with the standardized “21.75 days per month” figure used for other payroll calculations (like converting a monthly salary to a daily rate). For double wages, you must count the real, exact number of days worked in that particular calendar month.



Let’s Do the Math: A Practical Example

Scenario: An employee starts on July 15, 2025, with a monthly salary of ¥20,000. No contract is ever signed. They work until October 10. How much are the double wages? (We’ll assume normal workdays, with National Day and Mid-Autumn Festival holidays falling in October).


Step 1: August 15-31 (Partial Month)

Actual Working Days: 11

Daily Wage (¥20,000 / 21.75): ≈ ¥919.54

Double Wage for this period: ¥919.54 x 11 = ¥10,114.94


Step 2: September (Full Month)

This is a complete calendar month.

Double Wage: ¥20,000


Step 3: October 1-10 (Partial Month)

Actual Working Days: 6 (excluding the 4 statutory holidays)

Double Wage: ¥919.54 x 6 = ¥5,517.24


Total Double Wage Liability:

¥10,114.94 + ¥20,000 + ¥5,517.24 = ¥35,632.18


The Bottom Line for Employers Sign on Time

The golden rule remains. Get that written contract signed within the first month. It’s the simplest and most effective way to avoid trouble.


Document Everything

If a signing is delayed for any reason, keep meticulous evidence—emails, chat logs, official notices. This documentation is your best defense, proving the delay wasn’t due to your fault.


Know the Exceptions

Understand the scenarios of automatic extension and force majeure. You are not liable in these clearly defined cases.


Calculate Correctly

Always use the “actual working days” method for any partial months to ensure accurate and defensible calculations.



By following these clarified guidelines, employers in China can navigate the double wage rules with confidence, minimizing legal risks and building more transparent and stable labor relations.


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