Frequently Asked Questions

09 2026-10

Does the minimum wage include overtime pay?

The minimum wage does not include overtime pay. According to the "Regulations on Minimum Wage", overtime pay, special allowances, and welfare benefits are not included in the calculation of the minimum wage. Employers are not allowed to offset the minimum wage with overtime pay.

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09 2026-10

Can non-payment of wages directly lead to the termination of the employment contract, and is compensation required in such cases?

If an employer fails to pay wages or fails to pay social insurance premiums, the employee may lawfully terminate the employment relationship and claim economic compensation, which shall be calculated based on the length of service; the employer must notify the employee in writing of the statutory grounds for termination and retain evidence thereof.

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09 2026-10

How to protect one's rights if the company fails to pay wages on time?

The unpaid wages can be negotiated, and complaints, arbitration, litigation, and enforcement can be monitored. If the employee is forced to terminate the employment contract due to unpaid wages, they can claim economic compensation, and if the employer still refuses to pay, the employee can demand additional compensation.

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09 2026-10

Is there any compensation for being arbitrarily dismissed during the probationary period?

During the probationary period, the employer is not exempt from liability. Unjustified dismissal during the probationary period is an illegal termination, and the employee can claim compensation (twice the amount of economic compensation). The economic compensation is calculated based on the employee's length of service, and the employer must provide evidence to prove that the employee does not me...

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09 2026-10

Is it legal to charge a prepayment penalty?

It is illegal to charge interest upfront. The interest charged in advance should be deducted from the actual loan amount to determine the principal and calculate the interest; and the interest charged in disguise through service fees should also be refunded to the actual principal.

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09 2026-10

Is compound interest allowed under the law?

Compound interest is not necessarily protected. The interest earned in the early stage must not exceed four times the LPR when the contract is concluded. The excess part will be removed by the court, and the total fees are also subject to a cap.

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