Answer: According to the Provisional Regulations on Wage Payment and the regulations by the Ministry of Human Resources and Social Security on the COVID-19 epidemic, for the first month of lockdown, employers are obligated to pay employees according to the wage standard stipulated in employees¡¯ individual employment contracts (or actual wages, whichever is higher). For the second month, employers shall pay wages no less than the local minimum wage standard to the employees who have provided normal work, and pay the living expenses of the local standard to the employees who have not provided normal work.¹Article 12 of the Provisional Regulations on Payment of Wages (LaoBuFa [1994] No.489), Article 2 of the Notice of the Office of the Ministry of Human Resources and Social Security on Proper Handling Employment relationships during the Prevention and Control of Pneumonia Infected by the New Coronavirus (RenSheTingMingDian No.5 [2020]) stipulates: “If an enterprise stops production within a wage payment cycle, it shall pay wages to its employees in accordance with the standards stipulated in the employment contract. In case of more than one wage payment cycle, if the employee provides normal work, the wage paid by the enterprise to the employee shall not be lower than the local minimum wage standard. If the staff and workers do not provide normal work, the enterprise shall pay living expenses, of which the standards shall be implemented in accordance with the provisions of the provinces, autonomous regions and direct-administered municipalities.¡±

According to local regulations around the country, standards of living expenses are generally 70%-80% of local minimum wage standard. For example, the standard of living expenses in Shenzhen city is 80% of the local minimum wage.[The Notice of Liaoning Provincial Department of Human Resources and Social Security on Transmitting the Notice of the General Office of the Ministry of Human Resources and Social Security on Proper Handling Employment relationships during the Prevention and Control of Pneumonia Infected by the New Coronavirus stipulates that the standard of living expenses is 70% of the minimum wage standard. Henan Provincial Department of Human Resource on forwarding RenSheTingMingDian No.5 [2020], the Proper Handling Employment relationships during the Prevention and Control of Pneumonia Infected by the New Coronavirus (Yu She Ming Dian [2022]). The standard of living expenses shall not be less than 80% of the minimum wage.]

Therefore, during a lockdown due to an epidemic, employers are obligated to pay wages to its employees at their individual wage level, the local minimum wage, or living expenses, depending on the length of the lockdown and whether employees provide normal work for the employer.

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Mr. Wangdong

Mr. Dong Wang has been in practice for over 20 years, specializing in business law, including employment law, commercial law, company law, and intellectual property law. Mr. Wang has earned respect and trust from his clients due to his professionalism, fidielty, and kindness.

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  Article 12 of the Provisional Regulations on Payment of Wages (LaoBuFa [1994] No.489), Article 2 of the Notice of the Office of the Ministry of Human Resources and Social Security on Proper Handling Employment relationships during the Prevention and Control of Pneumonia Infected by the New Coronavirus (RenSheTingMingDian No.5 [2020]) stipulates: “If an enterprise stops production within a wage payment cycle, it shall pay wages to its employees in accordance with the standards stipulated in the employment contract. In case of more than one wage payment cycle, if the employee provides normal work, the wage paid by the enterprise to the employee shall not be lower than the local minimum wage standard. If the staff and workers do not provide normal work, the enterprise shall pay living expenses, of which the standards shall be implemented in accordance with the provisions of the provinces, autonomous regions and direct-administered municipalities.¡±