If you are laid off, work out N first: one month's pay for each full year, and under six months counts as half a month
- Top value
- Evidence A
- Saves money
- Free
- Takes minutes
- No willpower
In plain words
Severance pay (经济补偿) the company owes you when it lets you go is worked out like this: one month's pay for a full year, a period of at least six months but under a year counts as a year, and under six months is half a month. The monthly pay here is the average of your last 12 months before leaving, with bonuses, allowances and subsidies all included. If your pay is more than 3 times the local average monthly wage for the previous year, it is capped at 3 times, and at most 12 years are counted.
Mentioned in
- If you are bullied, insulted or obstructed at work over a long time, don't just endure it: write it down and keep evidence first, then take the complaint, police or arbitration route that fits
- When you get a severance payment, check the personal income tax first: the part within 3 times the local average wage for the previous year is tax-free, the rest is taxed separately and not added to the year's pay
Translated from the Chinese original. Original book, section 19, tip 4. This section describes legal rules, mostly mainland China’s. It is general information, not legal advice; for your own case, talk to a lawyer. Content may be out of date and rules differ by place. When you actually deal with an agency, a doctor or a court, follow what local officials, doctors and lawyers tell you. Disclaimer