This guide explains how holiday pay in China works, when 300% public holiday overtime applies, how adjusted working days should be handled, how public holidays differ from annual leave, and what employers should record for payroll compliance.
What does holiday pay mean in China?
Holiday pay in China can refer to several different payroll situations.
The most common meaning is normal wage payment during statutory public holidays when employees do not work. Employees should not lose salary simply because they rest during a statutory public holiday.
Holiday pay can also refer to overtime compensation when employees are required to work during statutory public holidays.
Employers should separate these categories carefully.
| Situation | Payroll treatment | Employer control point |
|---|---|---|
| Employee takes a statutory public holiday off | Normal wage payment should continue. | Do not deduct salary for the statutory public holiday. |
| Employee works on a statutory public holiday | Public holiday overtime pay may be required at no less than 300% of wages. | Confirm the date is a legal holiday, approve work in advance, and record attendance. |
| Employee works on a weekly rest day | Compensatory rest may be arranged; if not, pay may be required at no less than 200% of wages. | Distinguish rest days from legal holidays. |
| Employee works on an adjusted working day | Usually treated as a normal working day under the official holiday arrangement. | Update attendance and payroll calendars before the holiday period. |
| Employee takes annual leave around a public holiday | Only approved annual leave days should reduce the annual leave balance; statutory public holidays should not. | Separate annual leave from public holiday records. |
Which public holidays are recognized in China?
China’s national public holidays generally include New Year’s Day, Spring Festival, Qingming Festival, Labor Day, Dragon Boat Festival, Mid-Autumn Festival, and National Day.
The official holiday schedule is published each year and may include adjusted working days that convert certain weekends into workdays to create longer holiday periods.
Because the exact holiday dates and make-up working days change each year, employers should check the current Chinese holidays calendar before finalizing payroll cutoffs, attendance records, overtime approvals, and company closure notices.
For holiday pay purposes, the important point is not only the holiday name. The employer must identify the exact date category: statutory public holiday, weekend, adjusted rest day, make-up working day, or normal working day.
What is the overtime rate for public holiday work?
China’s Labor Law sets different overtime pay standards depending on the type of workday.
Under the Labour Law of the People’s Republic of China, employers should pay no less than 150% of wages for extended working hours, no less than 200% for work on rest days where compensatory rest cannot be arranged, and no less than 300% for work on legal holidays.
| Work situation | Minimum pay standard | Can compensatory rest replace payment? |
|---|---|---|
| Extended working hours on a normal workday | No less than 150% of wages. | Normally handled as overtime pay under the applicable working-hour system. |
| Work on a weekly rest day | No less than 200% of wages if compensatory rest cannot be arranged. | Compensatory rest may be possible if properly arranged. |
| Work on a statutory public holiday | No less than 300% of wages. | Employers should not treat compensatory rest as a replacement for statutory public holiday overtime pay. |
This distinction is especially important during long holiday periods. Not every day in a long holiday break is necessarily a statutory public holiday for overtime-pay purposes.
Does 300% pay apply to the entire holiday period?
No. Employers should not automatically apply 300% to every day in a long holiday period.
China’s long holiday periods often combine statutory public holidays with weekends and adjusted rest days. The 300% statutory holiday overtime rate applies when employees work on legal holidays, not automatically to every day in the longer holiday break.
For example, a National Day break may last several consecutive days, but some days may be legal holidays, some may be weekends, and some may be adjusted rest days. If employees work during the period, payroll teams should classify each day before calculating overtime.
| Date type | Common payroll logic | Employer action |
|---|---|---|
| Legal public holiday | Work may require no less than 300% holiday overtime pay. | Confirm the official legal holiday date and keep approval and attendance records. |
| Weekend or rest day inside the holiday break | Rest-day overtime rules may apply if the employee works and compensatory rest is not arranged. | Do not automatically treat it as a legal holiday unless it is officially one. |
| Adjusted rest day | Payroll treatment depends on how the day is classified under the official holiday arrangement and the employee’s schedule. | Update the attendance calendar before payroll is processed. |
| Make-up working day | Generally treated as a working day under the holiday arrangement. | Record attendance as a workday unless company policy provides extra leave. |
How should holiday pay be calculated?
Holiday pay calculation depends on the employee’s wage base, the type of day worked, the number of hours or days worked, and the applicable working-hour system.
For statutory public holiday work under the standard working-hour system, the simplified formula is:
Public holiday overtime pay = applicable daily or hourly wage base × 300% × public holiday work time
For example, if the applicable daily wage base is RMB 600 and an employee works one full statutory public holiday, the statutory holiday overtime amount would generally be:
RMB 600 × 300% × 1 day = RMB 1,800
This is a simplified example. Employers should confirm the correct wage calculation base according to the labor contract, payroll records, local wage rules, company policy, and applicable working-hour system.
Employers should also make sure that holiday overtime is reflected clearly in the payroll register and payslip.
How do adjusted working days affect holiday pay?
Adjusted working days are one of the most confusing parts of China’s holiday system for foreign headquarters. Confirm the normal working hours in China and the employee’s actual schedule before classifying those days.
China may move working days and rest days around public holidays to create longer holiday periods. This means a Saturday or Sunday may become an official working day, while a weekday may become part of the holiday break.
An adjusted working day is not automatically a public holiday. If an employee works on an officially adjusted working day, it is usually treated as a normal working day unless the company has a more generous policy or the employee’s specific schedule creates a different result.
Employers should therefore update HRIS, attendance systems, payroll calendars, and manager instructions before each holiday period.
| Question | What HR should confirm |
|---|---|
| Which dates are legal public holidays? | Use the official annual holiday schedule and internal payroll calendar. |
| Which dates are adjusted working days? | Update attendance systems so weekend make-up workdays are not treated as absences. |
| Which dates are rest days? | Check the employee’s work schedule and whether rest-day work was approved. |
| Who is required to work? | Document manager approval and business necessity before the holiday period. |
| How will overtime be paid? | Classify each date before payroll calculation. |
How is holiday pay different from annual leave?
Public holiday pay and annual leave pay should not be treated as the same thing.
Public holidays are national statutory holidays. Annual leave is an employee-specific paid leave entitlement based on cumulative working years.
Official guidance confirms that statutory holidays and regular rest days are not counted as part of annual leave. Other statutory leaves, such as marriage leave, bereavement leave, maternity leave, and paid work-injury leave, are also separate from annual leave.
For example, if an employee applies for annual leave from Monday to Friday and Wednesday is a statutory public holiday, the employer should normally deduct only four annual leave days, not five.
For detailed annual leave entitlement, pro-rated leave, unused leave compensation, and final settlement treatment, see HROne’s annual leave in China guide.
Do special working-hour systems change holiday pay?
Some employees may work under standard, comprehensive, or flexible working-hour arrangements.
Employers should be cautious when applying special working-hour systems. These arrangements may affect overtime treatment in some situations, but they should not be used casually to avoid public holiday pay obligations.
Before relying on a special working-hour system, employers should confirm whether the arrangement is properly approved or applicable, whether the employee’s role qualifies, and how statutory public holiday work should be treated locally.
The safest approach is to document the working-hour system in the labor contract, employee handbook, payroll rules, and attendance records.
What records should employers keep for holiday pay?
Holiday pay disputes often depend on records.
If an employee claims unpaid holiday overtime, the employer should be able to show the official holiday calendar, the employee’s schedule, whether holiday work was approved, the attendance record, the overtime calculation, and the payslip.
Official wage-payment guidance requires employers to provide wage statements and keep written wage payment records for more than two years.
| Record | Why it matters |
|---|---|
| Official holiday calendar | Shows which dates were statutory holidays, rest days, or adjusted working days. |
| Employee work schedule | Shows whether the employee was scheduled to work and what rest days applied. |
| Holiday work approval | Shows that holiday work was authorized and not informal or disputed later. |
| Attendance record | Shows actual working time during the holiday period. |
| Overtime calculation | Shows the wage base, rate, and number of hours or days used. |
| Payslip | Shows how holiday pay appeared in payroll. |
| Payroll approval record | Shows HR and finance reviewed the payment before salary was issued. |
| Employee communication | Shows the schedule and pay treatment were communicated clearly. |
Holiday pay should also be connected to the broader payroll control system. HROne’s China payroll compliance guide explains how payroll inputs, payslips, statutory contributions, records, corrections, and audit readiness should be managed together.
What should a holiday work approval process include?
Employers should avoid informal holiday work arrangements.
If employees are expected to work during a holiday period, the company should approve the work in advance, classify the date correctly, and explain the payroll treatment before the work happens.
- Confirm the business need. Managers should explain why holiday work is necessary.
- Classify the date. HR should confirm whether the date is a statutory public holiday, rest day, adjusted working day, or normal workday.
- Identify the employees involved. The approval should state who will work, what work will be done, and expected working hours.
- Approve before the holiday. HR, payroll, and the manager should confirm approval before the work occurs.
- Communicate pay treatment. Employees should know whether 300%, 200%, or another payroll treatment applies.
- Record attendance. Actual hours or days worked should be tracked accurately.
- Review payroll. Payroll should confirm the rate, wage base, and payslip treatment.
- Archive records. Keep approval, attendance, calculation, payslip, and payment records.
Common holiday pay mistakes in China
Most holiday pay mistakes come from confusing date categories or failing to document the work arrangement.
| Mistake | Why it creates risk | Better approach |
|---|---|---|
| Treating the entire long holiday as 300% pay | Not every day in a long holiday period is necessarily a statutory public holiday. | Classify each date before payroll calculation. |
| Paying normal wages for statutory holiday work | Legal holiday work may require no less than 300% overtime pay. | Apply the statutory public holiday overtime rate when required. |
| Using compensatory time off instead of 300% holiday pay | Rest-day rules and legal holiday rules are different. | Do not treat compensatory rest as a substitute for statutory holiday overtime pay. |
| Counting public holidays as annual leave | Public holidays and rest days should not reduce annual leave balances. | Separate public holiday records from annual leave records. |
| Not updating make-up working days in HR systems | Employees may be wrongly marked absent or payroll may calculate incorrectly. | Update attendance and payroll calendars before the holiday period. |
| No written approval for holiday work | The employer may not be able to prove whether work was authorized or how it should be paid. | Use a written approval process before holiday work begins. |
| Payslip does not show holiday overtime clearly | Employees may challenge whether the correct amount was paid. | Show holiday overtime separately or clearly enough for employee review. |
Holiday pay checklist for employers in China
- Check the official holiday schedule. Confirm statutory public holidays, adjusted rest days, and make-up working days for the year.
- Update internal calendars. Align HRIS, attendance, payroll, and manager schedules before the holiday period.
- Classify each date. Identify legal holidays, rest days, adjusted working days, and normal working days.
- Approve holiday work in advance. Avoid informal manager requests during holidays.
- Communicate pay treatment. Explain whether 300%, 200%, or another treatment applies.
- Record attendance accurately. Keep actual working hours or days worked during the holiday period.
- Calculate holiday overtime separately. Use the correct wage base and statutory rate.
- Separate annual leave from public holidays. Do not deduct statutory public holidays from annual leave balances.
- Issue clear payslips. Show holiday pay and deductions clearly enough for employee review.
- Archive payroll evidence. Keep approval, attendance, payroll, payslip, and payment records.
- Train managers. Ensure managers understand adjusted working days and statutory holiday overtime rules.
- Review final payroll carefully. Include any unpaid holiday overtime or unused leave items in the final salary settlement.
How HROne supports holiday payroll compliance
Holiday pay in China sits at the intersection of payroll, attendance, public holiday calendars, working-hour rules, and employee records.
For companies with an existing China entity, HROne’s China payroll outsourcing service can support salary calculation, public holiday overtime treatment, payslips, IIT withholding, social insurance, housing fund, and payroll records.
This is especially useful when overseas headquarters are unfamiliar with China’s adjusted working days, holiday periods, and local payroll expectations.
Payroll support works best when employers provide clear work schedules, holiday work approvals, attendance records, and salary rules before payroll is processed.
Conclusion: holiday pay in China depends on the exact date and work arrangement
Holiday pay in China is manageable when employers classify each date correctly and keep records.
Employees who rest during statutory public holidays should continue to receive normal wages. Employees who work during statutory public holidays may be entitled to no less than 300% of wages for that work.
Rest days, adjusted rest days, make-up working days, and annual leave should not be treated as the same category.
For foreign employers, the safest approach is to update the annual holiday calendar, approve holiday work in writing, record attendance, calculate holiday pay separately, issue clear payslips, and keep payroll evidence.
When these controls are in place, holiday pay becomes a predictable payroll item rather than a recurring source of employee complaints and labor disputes.
This article provides general information about holiday pay and payroll compliance in mainland China. It does not constitute legal, tax, accounting, or payroll advice. Holiday pay treatment can depend on the employee, work schedule, wage base, local practice, working-hour system, and current rules. Employers should obtain case-specific professional advice before implementing or correcting holiday pay arrangements.
FAQ
What is holiday pay in China?
Holiday pay in China generally refers to normal wage payment during statutory public holidays and overtime compensation when employees are required to work during statutory public holidays.
Do employees get paid during public holidays in China?
Yes. Employees should generally continue to receive normal wages during statutory public holidays, even if they do not work on those days.
What is the overtime rate for working on a statutory public holiday in China?
If an employee works on a statutory public holiday, the employer should generally pay no less than 300% of the employee’s wages for that holiday work.
Is public holiday overtime the same as rest day overtime?
No. Public holiday overtime and rest day overtime are different. Work on a statutory public holiday generally requires no less than 300% pay. Work on a rest day may require no less than 200% pay if compensatory rest cannot be arranged.
Does 300% pay apply to the whole holiday break?
Not always. Long holiday breaks may include statutory public holidays, weekends, adjusted rest days, and make-up working days. Employers should classify each date before calculating payroll.
Are public holidays counted as annual leave in China?
No. Statutory public holidays and regular rest days should not be counted as annual leave. If a public holiday falls within an annual leave period, that public holiday should not usually reduce the employee’s annual leave balance.
What are adjusted working days in China?
Adjusted working days are weekend days that become official workdays to create longer public holiday periods. They are usually treated as working days for attendance and payroll purposes.
What records should employers keep for holiday pay?
Employers should keep the official holiday calendar, holiday work approvals, employee schedules, attendance records, overtime calculations, payslips, payroll approvals, and salary payment proof.
