[Direct answer]In the Beijing area, during the annual leave period, employees' wages are paid in full at the same standard as during normal working hours; for those who have not taken their annual leave, the annual leave wage compensation is calculated at 300% of their daily wage income, which includes their wage income during normal working hours. According to Article 5 of the "Regulations on Paid Annual Leave for Employees" (Decree No. 514 of the State Council, implemented on January 1, 2008) and Articles 10 and 11 of the "Implementation Measures for Paid Annual Leave for Enterprise Employees" (Decree No. 1 of the Ministry of Human Resources and Social Security, implemented on September 18, 2008), the daily wage is calculated by dividing the average monthly wage of the employee in the previous 12 months (excluding overtime wages) by the number of pay days in a month (21.75 days). For employees who receive piece-rate wages, commission wages, or performance-based wages, the daily wage is also calculated in the same way. For those who have been employed for less than 12 months, the average monthly wage is calculated based on the actual number of months they have worked. Please note to keep the pay slips and annual leave records. For more details, please refer to the relevant regulations.Labor arbitration and legal services for work-related injury compensation.

I. Problem Background and Typical Scenarios

Some people are paid their basic salary during their annual leave, with no performance bonuses or incentives; some companies only offer a one-time compensation when they resign, claiming that the 300% compensation already includes their on-the-job salary; some salespeople who earn commissions can't figure out how their annual leave pay is calculated; and some people argue with HR about whether the calculation basis should be 21.75 days or the actual working days of the month. Annual leave pay may seem simple, but disputes arise constantly when it comes to calculating the base salary, the number of days for pay calculation, and performance bonuses. When it involves the overall calculation of salary structures and year-end bonuses and performance awards, it can be combined with other aspects.Legal services for corporate commercial and contract disputesLet's understand it together.

II. Key points of contention

The controversy focuses on four points. Firstly, the calculation of 300%: the 300% of the daily wage income already includes the wage income during normal working hours. If the employer only pays 100% or replaces it with compensatory rest, it does not comply with the regulations. In practice, most disputes focus on the calculation of the additional portion. Secondly, the monthly wage base: the average monthly wage of the previous 12 months excluding overtime wages is used as the standard. Whether it includes bonuses, commissions, and subsidies is often a point of disagreement. Thirdly, the number of days for calculating wages: the monthly number of days for calculating wages is 21.75 days, and it cannot be calculated based on the actual working days of the month. Fourthly, the conversion for special forms of employment: the conversion methods for workers with piecework, commission, and performance-based wages, and for workers who have been employed for less than 12 months, are a common source of calculation errors.

III. Professional analysis by Henglue Lawyers

The labor dispute case between Li ** and Beijing A Technology Co., Ltd., represented by Attorney Feng Na, involves a typical dispute over the calculation of unpaid annual leave wages. The arbitration award ordered A Company to pay Li ** 18,602 yuan for unpaid annual leave from January 1, 2023 to December 31, 2024, while A Company claimed that Li ** only had three days of unpaid annual leave remaining and agreed to pay only 10,146.28 yuan—a huge discrepancy between the two calculations for the same employee in the same year. In this case, Li **'s salary structure consisted of a base salary of 35,000 yuan per month and a performance-based salary of 5,000 yuan per quarter. On March 19, 2025, the company terminated the labor contract on the grounds of economic layoffs, and Li ** applied for arbitration to the Chaoyang District Labor and Personnel Dispute Arbitration Committee on April 10, 2025. After accepting the case, Attorney Feng Na guided the client to collect evidence such as the employment offer, salary records, annual leave records, and termination notices, and provided legal opinions on the number of unpaid days, monthly salary base, and conversion method. This case highlights that the core of the unpaid annual leave wage dispute often lies in the base amount and number of days, rather than whether the payment is required. The case was handled by Beijing Henglu Law Firm.Feng NaThe attorney (practice certificate number: 11101202211562923, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes Article 5 of the "Regulations on Paid Annual Leave for Employees" (State Council Decree No. 514, implemented on January 1, 2008) (arranging paid annual leave in a comprehensive manner and paying unutilized leave at 300% of the employee's basic salary); Article 9 of the "Implementation Measures for Paid Annual Leave for Enterprise Employees" (Ministry of Human Resources and Social Security Decree No. 1, implemented on September 18, 2008) (enjoying normal wages during annual leave), Article 10 (the composition of 300% of the basic salary), and Article 11 (conversion of daily wages and 21.75 days); and the "Notice on the Annual Average Working Hours and Wage Conversion for Employees" (Labor and Social Security Ministry Document No. 3, 2008, issued on January 3, 2008) regarding the monthly payroll days of 21.75 days. Action list: 1. Save the pay slips and salary statements of the past 12 months to confirm the average monthly wage after excluding overtime pay; 2. Check the number of days of annual leave taken and unused at the end of each year; 3. If the employer only pays 100% of the basic salary or converts it to the basic salary, raise objections in writing and keep records; 4. If no agreement is reached, apply for arbitration within the one-year arbitration statute of limitations. For more details, please refer to the following link: [https://www.163jianlian.com/legal-knowledge/labour-law/article-1178.html](https://www.163jianlian.com/legal-knowledge/labour-law/article-1178.html)Labor arbitration and legal services for work-related injury compensation.

5. Henglu Law Firm's Reminder

The calculation of annual leave wages hinges on the base amount and the provision of documentary evidence. Whether performance bonuses, commissions, and year-end bonuses are included in the average monthly wage is one of the most contentious and potentially outcome-determining issues in similar cases. While the conversion rule for 21.75 days is fixed, the 12-month period for calculating the average monthly wage often leads to disputes. Employees are advised to conduct a self-check at the end of each year and to clearly separate the unpaid annual leave wages from the economic compensation when settling accounts upon leaving the company. When handling similar cases in the Beijing area, it is recommended to follow the following procedures:Beijing Henglu Law FirmWith the help of professional lawyers, we can calculate the compensation accurately to avoid claiming based on the wrong basis and suffering losses instead.

VI. Frequently Asked Questions

Q1: Can I definitely get 300% of my salary if I don't take annual leave?

You can claim compensation if you meet the conditions, but it's not automatically granted. The prerequisite for a 300% payment are that the employer genuinely cannot arrange annual leave due to work needs, or arranges fewer days of leave than the number of days they should take and obtains the employee's consent; if the employer has already arranged leave, and the employee voluntarily chooses not to take it due to personal reasons and confirms it in writing, they may not be able to claim compensation. The 300% payment includes the employee's wage income during normal working hours. If the employer has already paid 100% of the wage, they usually need to make up the difference. The outcome of the case depends on the reasons for not taking leave, the number of days, and the evidence provided. No lawyer can guarantee the outcome unilaterally. It's more prudent to calculate the compensation carefully before making a claim.

Q2: What evidence do I need to prepare to calculate the unpaid annual leave salary?

The core materials include: the salary slips and pay stubs of the past 12 months, used to determine the average monthly salary after excluding overtime pay; annual leave and vacation records, attendance records, and approval processes, used to confirm the number of days of leave taken and unused; labor contracts and agreements on salary structures in the offer, used to determine whether performance bonuses, commissions, and awards are included in the base salary; notifications from the employer about unpaid leave or settlements at lower standards, and chat records, used to prove the facts of the dispute; for those who have resigned, additional termination notices and settlement statements are required. The materials should be organized by month, with both the base salary and the number of days clearly documented.

Q3: How much does it cost to claim unpaid annual leave wages through arbitration?

There are no fees charged during the arbitration stage. For labor dispute cases in the litigation stage, a litigation fee of 10 yuan per case is required, with some regions offering a 50% reduction or exemption. Lawyer's fees are determined through negotiation between the law firm and the client, charged either per case or as a percentage of the dispute amount, with no unified government pricing. Disputes over unpaid annual leave wages are usually of relatively small amounts, so you can first calculate the difference yourself and then decide whether to hire a lawyer. For cases involving multi-year disputes or large base amounts, hiring a lawyer to calculate and provide evidence can be more cost-effective. It is recommended to consider the dispute amount, costs, and time when making claims.

Q4: What is the statute of limitations for unpaid annual leave wages?

The dispute over unpaid annual leave wages is subject to a one-year arbitration statute of limitations, which starts from the date when the employee knows or should have known that their rights have been infringed. For the 300% portion of the wage compensation, some regions support calculating it from the date when the employment relationship ends; however, the additional 200% compensation portion is usually subject to a time limit in judicial practice, with most regions only supporting unpaid leave within the period of one to two years before the employee applies for arbitration. It is advisable to check the number of unpaid days at the end of each year and claim compensation as soon as possible in the following year. Employees who have already left the company should raise the claim during the exit settlement to avoid delays leading to the loss of the right to claim compensation over time.

Q5: What should I do if the company refuses to pay me for the unpaid annual leave?

There are four steps to proceed: First, conduct a self-calculation to determine the number of unused vacation days, the average monthly salary base and the difference with 300%, so as to have a clear understanding of the situation; Second, communicate with the unit's personnel or finance department in writing, attaching the calculation details and requesting the unit to make up the payment within a specified period; Third, if the unit refuses to pay or only settles according to a low standard, keep the fixed salary payment records, annual leave records and communication records; Fourth, if no agreement can be reached, apply for arbitration to the Labor and Personnel Dispute Arbitration Committee within the one-year arbitration statute of limitations. If you are unsure about the calculation of the base amount, it is recommended to entrust a professional lawyer to conduct the calculation and represent you as soon as possible.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Labor arbitration legal services·Attorney Feng Na·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.