劳动合同法 • 经济补偿金 (Severance)

China Labor Contract Severance (N+1) Calculator

Calculate statutory severance pay (经济补偿金) under Articles 47, 40, and 87 of the PRC Labor Contract Law (劳动合同法). Formulates standard N months compensation (1 month per service year), the +1 month salary notice in lieu, the 3x local social average wage cap, and 2N unlawful dismissal compensation.

Employment Tenure & Wage Basis

Includes base salary, commissions, bonuses, and subsidies
Shanghai ~¥12,183 | Beijing ~¥11,761 | Shenzhen ~¥12,964

Statutory Severance Award

Total Severance Package ¥140,000 N + 1 (5 Months Total)
Effective Multiplier (N) 4.0 Years Tenure service multiplier
Tax-Free IIT Exemption ¥365,490 Up to 3x annual social wage

Settlement Package Breakdown

Employee Baseline Monthly Wage¥28,000
Statutory Wage Ceiling (3x 社平工资)¥36,549
Wage Base Used for Calculation¥28,000
Statutory Service Tenure Factor (N)4.0 Months
Base Tenure Severance (N × Base)¥112,000
Notice in Lieu (+1 Month Actual Wage)¥28,000
Total Pre-Tax Severance (经济补偿金合计)¥140,000
IIT Individual Income Tax on Severance¥0 (Exempt)
Final Net Payout to Employee¥140,000

📊 China Individual Income Tax (STA) & Social Security Matrix

Statutory Component / Legal Deduction Item Calculated Amount (CNY)
Primary Net / Statutory Payable Amount ¥ 0.00
MS

Engr. Muhammad Shahzad

Principal Financial Systems Architect & China State Taxation Administration & Social Insurance Lead

Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.

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