How are salaries prorated in China?

Pro-rata is the proportional value of a part compared to its whole. A pro-rata salary is when employers pay their employees for the number of hours they worked in proportion to what they would earn if they worked full-time. This often occurs when an employee does not work for their predetermined hours in the given pay period or month.


[The China Monthly Salary Cycle]:By Calendar Month (1st - 28th/30th/31st)

and [Statutory Payable Days]: 261 days per year / 21.75 days per month (No matter how many working days in certian calender month)



Q:What's the calculation rule in China for incomplete monthly working by FTE (Full-time Employee)?

How would the salary for the monthly if the employee onboard/offboard in the Middle of the Month. 


A:Prorata Caculation in China for incomplete month employed:

STATUTORY  

 = Round(Base Pay/21.75* X,2)

  X= Networking days( including days worked + Bank Holiday/PTO)

e.g. Someone start on 9th May 2023 as date of commencement, with monthly salary agreed at CNY10000,  from 9th May - 31 May, there are 17 networking days,

 - So His/Her May salary will be CNY10000/21.75*17= CNY7,816.09.


Q: How about other compensation for incomplete payable month?ie Allowance

A:There's no STATUTORY  but COMMON PRACTICE  are to follow the rule of Basic Salary

= Round(Base Pay/21.75* X,2)  


Q:Then any Statutory caculation rule for annual bonus?

A:  No, there's no statutory ones, but COMMON PRACTICE  are 

=Round(X/365* Entitlement for full year, 2)

X=Valid caldendar days of employment in the calendar year


REFERENCE

Ministory of China HR】Notice on the annual average working hours of employees and the conversion of wages


 








Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article