Employment Details
One month per full year; 6+ months rounds up to one year
Generally includes wages, bonuses, allowances and subsidies
Add this to test the statutory three-times local wage cap
Payment in lieu applies only in specified statutory termination situations
Estimated Compensation
How China severance pay generally works
N generally means statutory service months. Under Article 47 of China’s Labor Contract Law, one month of salary is paid for each full year of service; six months or more rounds up to a year, while less than six months is half a month.
N+1 is not automatic. The “+1” is commonly discussed as one month of payment in lieu of notice for certain no-fault termination grounds when the employer does not give 30 days’ written notice.
2N is a common shorthand for damages that may be discussed when a termination is found unlawful. Whether it applies depends on the legal ground, procedure, evidence and the dispute resolution outcome.
N+1 is not automatic. The “+1” is commonly discussed as one month of payment in lieu of notice for certain no-fault termination grounds when the employer does not give 30 days’ written notice.
2N is a common shorthand for damages that may be discussed when a termination is found unlawful. Whether it applies depends on the legal ground, procedure, evidence and the dispute resolution outcome.
❓ FAQ
How is the monthly salary base calculated?
It is generally the employee’s average monthly pay in the 12 months before termination or expiry. The exact treatment of bonuses and allowances requires the relevant records and local practice.
I worked for three and a half years. What is N?
For the usual statutory formula, three and a half years is generally counted as four months of salary because six months or more rounds up to one year.
Does every termination get N+1?
No. The extra month is not a universal rule and is commonly linked to particular statutory no-fault termination grounds where notice was not provided.