Layoff Compensation Calculator

Calculates severance pay based on the latest 2025 "Labor Contract Law", providing accurate compensation amount calculations

Calculation Parameter Settings

Entry Date

Start date of the labor contract

Leave Date

Date of labor contract termination or expiry

Monthly Average Salary (¥)

Average salary for the 12 months prior to termination

Compensation Type

Note: If the monthly average salary exceeds 3 times the local average social salary, it will be calculated based on 3 times.

Calculation Result

Years of Service 0年

Compensation Months 0个月

Monthly Average Salary ¥0

Calculation Steps

Please enter relevant data to start calculation

Total Compensation Due

¥0

Legal Reminder: The compensation amount is for reference only. The actual amount is subject to labor arbitration or court rulings.

Legal Basis
Compensation Standards
Calculation Method
Notes

Relevant Provisions of the "Labor Contract Law"

Article 47: Standard for Severance Pay

Severance pay shall be paid to the worker based on the number of years of service with the employer, at the rate of one month's wages for each full year of service. For a period of more than six months but less than one year, it shall be counted as one year. For a period of less than six months, the worker shall be paid half a month's wages as severance pay.

Article 87: Compensation for Unlawful Termination

If an employer terminates or ends a labor contract in violation of this Law, it shall pay compensation to the worker at twice the rate of the severance pay standard specified in Article 47 of this Law.

Applicable Situations

The employer proposes to terminate the labor contract
Economic layoffs by the employer
Non-renewal upon expiration of the labor contract
The employer unlawfully terminates the contract

Limits and Provisions

Maximum shall not exceed 12 months
Monthly wage is capped at 3 times the local average social salary
Years of service are calculated based on the actual period

Detailed Explanation of Compensation Standards

Normal Severance Pay (N)

Calculation Formula: Years of Service × Monthly Average Salary

Applicable Scenarios: Mutual agreement termination, economic layoffs, non-renewal upon contract expiry, and other legal termination situations.

Unlawful Termination Compensation (2N)

Calculation Formula: Years of Service × Monthly Average Salary × 2

Applicable Scenarios: The employer unlawfully terminates the labor contract and must pay double compensation.

Compensation for Lack of Prior Notice (N+1)

Calculation Formula: (Years of Service + 1) × Monthly Average Salary

Applicable Scenarios: The employer terminates the labor contract without providing written notice 30 days in advance.

Detailed Calculation Steps

Step 1: Determine Years of Service

Actual years of service from the entry date to the leave date, calculated precisely to the month.

Step 2: Calculate Monthly Average Salary

Calculate the average of the wages earned in the 12 months prior to termination, including base salary, bonuses, allowances, etc.

Step 3: Determine Compensation Coefficient

Determine whether it is N, N+1, or 2N based on the termination situation.

Step 4: Calculate Final Amount

Years of Service × Compensation Coefficient × Monthly Average Salary

Special Note: A service period of less than 6 months is calculated as 0.5 year. A period of more than 6 months but less than 1 year is calculated as 1 year.

Usage Notes

Wage Structure

Monthly average salary includes: base salary, performance bonuses, allowances, overtime pay, and other due income.

Regional Differences

Average social salary standards vary by region. Please refer to data published by the local human resources and social security department.

Time Limit Requirements

The time limit for applying for labor arbitration is one year, calculated from the date the right was or should have been known to be infringed.

Evidence Preparation

Keep relevant evidence such as labor contracts, pay slips, bank statements, termination notices, etc.

Important Reminders

This calculator is for reference only. Actual compensation may vary based on specific circumstances.
It is recommended to consult a professional labor law attorney or the local labor arbitration department.
If there is a dispute over compensation, you can apply for arbitration with the local Labor Dispute Arbitration Committee.
If the employer fails to pay compensation, you can complain and report to the labor inspection department.