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Severance Pay Calculator

Finance & Investment

N, N+1 and 2N compensation with 3x average salary cap

Quick Answer

Severance Pay Calculator: N, N+1 and 2N compensation with 3x average salary cap. N = 1 month per full year; ≥6 months rounds up to 1 year, <6 months = 0.5.

City (avg wage):

Scenario

Compensation (N)

¥60,000

N (months)4
N¥60,000
N+1¥75,000
2N¥120,000

Steps (Labor Contract Law art. 47)

  1. 1Years 3.6 → N = 4 (≥6mo rounds up to 1yr, <6mo counts 0.5)
  2. 2Base = 15000 (below 3× average cap)
  3. 3N = 4 × ¥15,000 = ¥60,000

Scenario reference

MultiplierScenario
N ←Mutual agreement / layoff
N+1No-fault dismissal w/o 30-day notice
2NUnlawful termination (damages)
0Voluntary quit / gross misconduct

💡 Monthly wage = average of last 12 months before termination (bonus & allowances included). Severance up to 3× local average is tax-free. City averages are 2024 references — verify with local HR bureau.

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How to Use

  1. Enter amounts and terms: fill principal, rate and period in the Severance Pay Calculator (defaults work for a quick try).
  2. Instant results: key figures and cost breakdown update live as you type.
  3. Compare scenarios: tweak any parameter to compare costs and returns across plans.
  4. Copy key numbers: one-click copy for records or sharing with your advisor.

Key Points

  • Severance Pay Calculator is a free online finance tool — open and use, no sign-up.
  • All calculations run locally in your browser; your data never leaves the device.
  • Key capability: N, N+1 and 2N compensation with 3x average salary cap.
  • Results come with formulas and reference tables so you can verify every number.

Formula & How It Works

Severance pay (China Labor Contract Law)

N = 1 month per full year; ≥6 months rounds up to 1 year, <6 months = 0.5
Monthly wage = average of last 12 months (incl. bonuses)
Cap: wage > 3× local average → base capped at 3×, years capped at 12
N+1: +1 month in lieu of 30-day notice (Art. 40); 2N: unlawful termination (Art. 87); ≤3× local average is tax-exempt

FAQ

How do I use the Severance Pay Calculator?
Open the page and fill in the input fields — results update automatically. N, N+1 and 2N compensation with 3x average salary cap.
Are the results accurate?
Yes. Standard financial formulas and published rate data are used. For official figures, consult your financial institution.
Is it free? Do I need to sign up?
Completely free. No registration, login or download required.
Can I use the results for financial decisions?
Results are for reference. Consult a licensed financial advisor before major decisions.
Does it work on mobile?
Yes. Fully responsive on phones, tablets and desktops.

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Source & Updates

Based on published rate tables and standard financial formulas. Last updated: 2025-07

Authoritative sources:

Last updated:

Formulas and content on this page are reviewed by the YiJianSuan team. For reference only — official sources prevail.

Maintained and periodically reviewed by the YiJianSuan editorial team — review process in ourEditorial Policy.

Cite this page: YiJianSuan. Severance Pay Calculator[EB/OL]. https://www.yijiansuan.com/en/c/finance/severance

Results provided by this tool are for reference only and do not constitute professional advice.