The Ministry of Labor's "Opinions on the Implementation of Certain Issues Regarding the Labor Law of the People's Republic of China" states: "The term 'wages' in the Labor Law refers to the labor remuneration paid in monetary form directly to the employees of the employer in accordance with national regulations or agreements in the labor contract. Generally, it includes time-based wages, piece-rate wages, allowances, bonuses, compensation for overtime work, and wages paid under special circumstances. 'Wages' constitute the main component of the laborers' income."

The following labor income does not fall under the scope of wages:

(1) Social insurance and welfare expenses paid by the entity to individual workers, such as funeral and bereavement compensation, hardship assistance, and family planning subsidies.

Labor protection expenses, such as the costs for work uniforms, detoxification agents, and cool drinks provided by the employer to employees.

"(3) Various forms of labor compensation and other labor income not included in the total salary, such as awards for innovation and invention, the National Spark Award, the Natural Science Award, the Award for Scientific and Technological Progress, the Award for Rationalization Suggestions and Technical Improvements, the China Skills Grand Prize, etc., as well as fees for writing, teaching, and translation."