China’s 21.75 salary divisor is the national standard for converting a monthly wage into daily and hourly wage rates. The daily wage is calculated by dividing the applicable monthly wage by 21.75; the hourly wage is calculated by dividing it by 21.75 and then by eight hours. For employers managing these calculations, HROne’s China Payroll Outsourcing services support monthly payroll processing and statutory wage calculations.
The divisor is relevant to overtime pay and to certain partial-month and unpaid-leave calculations. However, 21.75 is not the number of days an employee must attend work each month, and it does not establish one nationwide method for every salary adjustment. This guide explains the formula, the difference between 21.75 and 20.67, and practical examples for new hires, leavers, unpaid leave, and overtime.
China’s 21.75 Salary Divisor: Formula at a Glance
| Calculation | Formula |
|---|---|
| Monthly salary days | (365 – 104) / 12 = 21.75 days |
| Daily wage | Applicable monthly wage / 21.75 |
| Hourly wage | Applicable monthly wage / (21.75 x 8) |
| Average monthly working days | (365 – 104 – 13) / 12 = 20.67 days |
Quick example: If the applicable monthly wage base is RMB 21,750, the daily rate is RMB 21,750 / 21.75 = RMB 1,000, and the hourly rate is RMB 1,000 / 8 = RMB 125.
These figures follow the Ministry of Human Resources and Social Security’s 2025 Notice on Average Working Time and Wage Conversion (Notice No. 2 of 2025). The 2025 notice replaced the earlier 2008 notice after the number of statutory public-holiday days increased to 13.
Why China Uses 21.75 Instead of 20.67
China uses 20.67 days to express average monthly scheduled working time, after deducting weekends and the 13 statutory public holidays from the annual calendar. The 21.75 salary-days figure does not deduct those paid public holidays, because employees are legally entitled to wages for statutory holidays.
The two figures answer different questions: 20.67 is an average working-time measure; 21.75 is the standard divisor used to convert monthly wages into daily and hourly rates. Neither number should be mistaken for actual attendance in a particular month. This distinction reflects Article 51 of China’s Labour Law and the official wage-conversion notice linked above.
How to Calculate Partial-Month Salary for New Hires and Leavers
When an employee starts or leaves partway through a payroll month, the employer needs a defensible way to calculate pay for the relevant period. A daily-rate approach may use applicable monthly wage / 21.75 x payable days, but the number of payable days and the final method depend on local wage-payment rules, paid-holiday treatment, and the employer’s lawful payroll policy. It is not a mandatory nationwide formula for every partial month.
Example: Mid-Month Joining and Leaving
Assume each employee has an applicable monthly wage of RMB 21,750 and the employer lawfully uses a daily-rate method. The examples below assume that the payable-day totals have already been verified against the employee’s employment dates, schedule, and any relevant paid holidays.
| Item | New hire | Departing employee |
|---|---|---|
| Applicable monthly wage | RMB 21,750 | RMB 21,750 |
| Daily rate | 21,750 / 21.75 = RMB 1,000 | 21,750 / 21.75 = RMB 1,000 |
| Assumed payable days | 7 | 12 |
| Illustrative partial-month wage | RMB 7,000 | RMB 12,000 |
These are illustrative basic wage amounts before employee statutory deductions and IIT, not guaranteed take-home pay. A departing employee may also be owed other amounts, such as qualifying unused annual-leave pay, bonuses, or termination compensation, which require separate calculations.
Important: Some lawful payroll arrangements calculate a partial month’s pay by deducting non-payable time from a full monthly wage instead of multiplying payable days by the daily rate. Employers should verify the applicable approach and not assume that every calendar day or every scheduled day must be treated identically.
How to Calculate Unpaid Leave Deductions Using 21.75
For approved unpaid personal leave, an employer may use a daily deduction based on 21.75 where the method and wage base are permitted by the applicable local rules and lawful company policy.
Daily unpaid-leave deduction = Applicable monthly leave wage base / 21.75
Total deduction = Daily unpaid-leave deduction x Chargeable unpaid-leave days
Example: Two Days of Unpaid Personal Leave
Assume an employee earns RMB 21,750 per month, the applicable leave deduction base is also RMB 21,750, and two full scheduled working days are properly classified as unpaid personal leave.
| Item | Calculation | Amount |
|---|---|---|
| Full monthly wage | Assumed wage | RMB 21,750 |
| Daily leave deduction | 21,750 / 21.75 | RMB 1,000 |
| Two unpaid days | 1,000 x 2 | RMB 2,000 |
| Wage after leave deduction | 21,750 – 2,000 | RMB 19,750 |
The illustrative wage after unpaid leave is RMB 19,750 before social insurance, Housing Provident Fund deductions, IIT, and other lawful payroll adjustments.
Employers must distinguish unpaid personal leave from statutory holidays, paid annual leave, and sick leave, which can have different wage-payment rules. The base used for leave calculations may also differ from an employee’s total gross compensation. Shanghai’s human resources authority, for example, explains the 21.75-day conversion for leave-related daily and hourly wages.
How the 21.75 Divisor Affects Overtime Pay
For employees under China’s standard working-hours system, the 21.75 divisor is used to convert the applicable overtime wage base into daily or hourly rates. The minimum statutory premium depends on when the additional work occurs.
| Overtime type | Minimum rate |
|---|---|
| Additional hours on a normal working day | 150% of applicable hourly wage |
| Work on a rest day without compensatory rest | 200% of applicable daily or hourly wage |
| Work on a statutory public holiday | 300% of applicable daily or hourly wage, in addition to the regular paid-holiday entitlement |
Example: Two Hours of Working-Day Overtime
Assume the employee’s valid overtime wage base is RMB 21,750 per month and they perform two additional approved hours on a normal working day.
- Hourly wage base: RMB 21,750 / 21.75 / 8 = RMB 125
- Overtime premium: 150%
- Overtime pay: RMB 125 x 2 x 150% = RMB 375
The overtime wage base is not necessarily identical to total gross salary, and approved special working-hours systems may be subject to different rules. For rest-day substitution, holiday pay, and detailed requirements, see HROne’s Chinese overtime pay calculation.
Why 21.75 Is Not Actual Monthly Attendance
An employee with a fixed monthly salary is not normally paid a different base salary simply because one month has 20 scheduled working days and another has 23. If the employee completes the relevant schedule and meets the conditions for full monthly pay, the fixed salary remains the same under the assumptions below.
| Item | Month A | Month B |
|---|---|---|
| Illustrative scheduled working days | 20 | 23 |
| Statutory salary divisor | 21.75 | 21.75 |
| Fixed monthly salary | RMB 21,750 | RMB 21,750 |
| Converted daily wage rate | RMB 1,000 | RMB 1,000 |
Attendance records still matter for overtime, leave, partial-month employment, and other lawful adjustments. They simply serve a different purpose from the nationally standardized wage-conversion divisor.
How Employment Contracts and Payroll Policies Affect 21.75 Calculations
The divisor is only one part of a correct payroll calculation. Before applying it, employers must establish the appropriate wage base, eligible days or hours, and applicable calculation method under local rules and lawful employment arrangements.
- Wage base: Determine which normal wage components belong in the overtime or leave calculation base; not every bonus or allowance is necessarily included.
- Partial-month policy: Document a compliant approach to pay when an employee joins or leaves during the month.
- Leave and overtime classification: Separate unpaid personal leave, paid leave, working-day overtime, rest-day work, and statutory-holiday work.
- Records and review: Retain accurate attendance, leave approval, overtime authorization, calculation, and payment records.
For a concrete local example, Shanghai’s Enterprise Wage Payment Measures, effective August 1, 2026, generally base overtime and certain leave calculations on the normal monthly wage corresponding to the employee’s position. They exclude specified special payments and establish rules for identifying the wage base through the employment contract, collective agreement, or applicable fallback method. Shanghai’s detailed rules should not be assumed to apply identically across every Chinese city.
Common Payroll Mistakes and Why They Matter
Common mistakes include treating 21.75 as actual attendance, using the wrong wage base, omitting paid-holiday treatment, deducting the wrong type of leave, or applying the standard overtime formula without checking the employee’s working-hours system. These errors can lead to underpayment, incorrect payroll records, and employee disputes.
Under Article 85 of China’s Labor Contract Law, labor authorities may order employers to pay unpaid wages or overtime compensation within a specified period in relevant circumstances. An additional 50%–100% payment is not automatic for every calculation mistake; the statutory mechanism applies where the employer fails to pay by the authority’s deadline, subject to the applicable conditions.
Employer Checklist: Applying the 21.75 Divisor Correctly
- Confirm whether you need a daily or hourly wage conversion, rather than an actual attendance count.
- Check the applicable local rules and lawful wage base before using the formula.
- Record payable days for partial-month employment and chargeable days for unpaid leave.
- Use the correct premium and working-hours arrangement for overtime.
- Review calculations against the employment contract, attendance records, leave approvals, and payslip before payroll closes.
If you need a full gross-to-net calculation beyond the 21.75 wage conversion, see HROne’s how to calculate payroll in China.
Frequently Asked Questions
What is the 21.75 salary divisor in China?
21.75 is the national monthly salary-days figure used to convert applicable monthly wage income into daily and hourly wage rates. It does not mean every employee works 21.75 days each month.
How do you calculate daily and hourly wages using 21.75?
Daily wage = applicable monthly wage / 21.75. Hourly wage = applicable monthly wage / 21.75 / 8. For a wage base of RMB 21,750, the converted rates are RMB 1,000 per day and RMB 125 per hour.
Why is 21.75 still used when average monthly working days are 20.67?
The 20.67 figure deducts weekends and 13 statutory public holidays when measuring average working time. The 21.75 wage divisor does not deduct statutory holidays because those holidays are paid under Chinese labor law.
Do employers have to use 21.75 for every partial-month salary?
No. The 21.75 figure establishes the standard daily wage conversion, but the full method for joining or leaving mid-month must follow applicable local wage-payment rules, paid-holiday treatment, and a lawful payroll policy. Employers should not assume that one payable-day formula is mandatory nationwide.
How is unpaid personal leave deducted using 21.75?
Where the daily-rate deduction method is legally applicable, divide the relevant monthly leave wage base by 21.75 and multiply by the number of chargeable unpaid-leave days. For a RMB 21,750 base and two full unpaid days, the illustrative deduction is RMB 2,000.
Is the overtime calculation base always the full gross salary?
No. The overtime base is determined under the applicable local rules and employment arrangements and can exclude certain payments. The 21.75 divisor is applied only after the appropriate wage base has been established.
Does a month with 23 scheduled working days mean a higher fixed monthly salary?
Not by itself. A fixed monthly salary generally stays unchanged when the employee meets the conditions for full pay, even if the month’s scheduled working-day count differs. Attendance, overtime, and leave can still affect other payroll components.
Conclusion
21.75 is China’s national daily and hourly wage-conversion divisor, not a monthly attendance target. It provides a consistent benchmark for wage calculations, but correct partial-month salaries, unpaid-leave deductions, and overtime pay also depend on the legally applicable wage base, local requirements, and reliable payroll records.
Employers should apply the formula alongside documented employment terms and lawful payroll procedures, rather than treating 21.75 as a complete payroll policy in itself.
