China utilization starts with the right available-hours base. Everhour helps teams keep capacity and approvals consistent.
Measure billable utilization against total capacity and see exactly how many hours you're leaving on the table each period.
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A utilization rate shows the share of available working hours that became billable, client-facing, or otherwise chargeable work. In China, the calculation usually starts with a firm capacity policy: gross annual capacity based on a 40-hour week, or scheduled capacity after national public holidays and statutory paid annual leave. The numerator stays the same: billable hours actually recorded for the person, team, role, or period.
This result matters for staffing plans, pricing, margin checks, and delivery targets. A team member with 1,458 billable hours can look underused or on target depending on whether the denominator is 2,080 gross hours, 1,984 holiday-net hours, or a leave-adjusted capacity band. The calculation must name the denominator, because China-specific holiday and leave inputs change the available-hours base.
China's ordinary full-time capacity denominator is commonly based on the State Council working-time rule of 8 hours per day and 40 hours per week. A 40-hour week gives 2,080 annual hours before subtracting public holidays, statutory annual leave, sick leave, or firm-specific PTO. That gross denominator works for broad capacity planning, but it overstates availability when you need a working-time view.
From January 1, 2025, national holidays for all citizens total 13 days. At 8 hours per day, those public holidays remove 104 hours from an annual scheduled-hours denominator. China's paid annual leave bands are 5, 10, or 15 days based on cumulative years of service, and national statutory holidays and rest days are not counted as annual leave. Subtract those categories separately when the denominator represents available working hours.
The basic formula is billable hours divided by available hours, then multiplied by 100. For a China employee with the 5-day statutory annual leave band, a holiday-net denominator of 1,984 hours falls to 1,944 hours after subtracting 40 annual-leave hours. If that employee records 1,458 billable hours, utilization is 75%.
The same example can support revenue capacity checks. At a ¥720 standard billing rate, 1,458 billable hours carry ¥1,049,760 of billable value. Keep the utilization percentage separate from billing value: utilization measures the share of available capacity used for billable work, while billing value adds rate discipline, discounts, write-downs, and collections.
China's national rules set working-time, holiday, and leave inputs for the capacity denominator, but they do not prescribe a professional-services utilization target. A software agency, law firm, implementation partner, and internal services team can all use the same denominator logic and still choose different target rates. Treat the target as a firm-level policy or industry benchmark, not a statutory China figure.
The common mistake is copying a target from another market and then using a China leave-adjusted denominator. That mixes two assumptions. A cleaner method sets the denominator from China capacity rules, defines the numerator from recorded billable hours, then compares the result with an internal target by role. A junior consultant, delivery lead, and manager often need different utilization expectations because their non-billable responsibilities differ.
A calculator is enough when you need a single rate for a person, project, or planning scenario. It works well for checking whether 1,458 billable hours over 1,944 available hours equals 75%, or whether a proposed target fits a China leave-adjusted year. A spreadsheet also handles occasional comparisons between gross capacity and holiday-net capacity.
A managed workflow becomes necessary when utilization feeds approvals, capacity planning, billing, and payroll review. Everhour Team Management supports weekly capacity per team member, approval workflows, lock rules after a period or after approval, admin time correction, roles, project assignments, and team groups. Those controls keep China capacity assumptions and approved hours from drifting across reports.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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Use the denominator that matches the decision. Gross annual capacity uses 2,080 hours for a 40-hour week. A scheduled-hours denominator subtracts China public holidays, and an available-hours denominator also subtracts statutory annual leave based on the employee's cumulative years of service. Label the denominator in every utilization report.
Yes, if the utilization rate uses scheduled or available working hours. From January 1, 2025, national holidays for all citizens total 13 days, equal to 104 hours at 8 hours per day. If a national holiday falls on Saturday or Sunday, China requires a substitute holiday on a working day.
Subtract them as separate categories. China's paid annual leave rules state that national statutory holidays and rest days are not counted as annual leave. A denominator that nets out available working hours should subtract public holidays first, then subtract the employee's 5-, 10-, or 15-day statutory annual leave band.
No statutory national target exists for professional-services utilization in China. National rules affect working-time, holiday, and leave inputs for the denominator. The target rate remains a firm-level or industry-benchmark policy choice, so a report should show both the China capacity basis and the target source.
Yes. The same billable-hours numerator can produce different rates when the denominator changes. An employee with 1,458 billable hours has 70.10% utilization against 2,080 gross hours and 75% utilization against 1,944 leave-adjusted available hours. The second rate answers a tighter working-capacity question.
Everhour Team Management lets admins set weekly capacity per team member, use approval workflows, lock completed periods, correct time entries, assign roles, and group teams for reporting. Those controls help managers keep China capacity assumptions, approved hours, and utilization reporting aligned across people and projects.
Everhour Resource Planning compares planned capacity with actual tracked time and shows scheduled time off on the resource timeline. Managers can review member or project views, spot overallocation, and adjust assignments before utilization gaps turn into billing or delivery problems.
Set weekly capacity, approve timesheets, and lock completed periods before utilization reports feed staffing or billing decisions. Everhour Team Management keeps approved hours tied to usable capacity data.
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