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China legal tool Employment & labor National framework
Estimate statutory economic compensation (N), Article 40 notice pay (N+1) and potential unlawful-termination compensation (2N), then verify the termination ground, wage data and local implementation.
Use gross remuneration included in the statutory compensation wage base. Local average-wage and minimum-wage figures must be checked for the relevant place and year.
Enter the employment details to calculate.
Article 47 of the PRC Labor Contract Law provides the service-unit and wage-base framework for economic compensation. Article 40 can add one month of notice pay in qualifying circumstances, while Article 87 provides compensation at twice the Article 47 rate for unlawful termination.
The statutory formula is only one part of a termination analysis. The available remedy depends on the stated ground, supporting evidence, procedure, service history, protected status and local wage publications.
Plain-language context for employees, employers and HR teams screening a potential China termination payment.
Each full qualifying year generally counts as one month. A remaining period of at least six months is treated as one year; a shorter period is treated as half a month.
If the relevant monthly wage exceeds three times the published local average, the compensation base is capped at that threshold and the capped service period is limited to 12 years.
No. The additional month is tied to qualifying Article 40 termination grounds when the employer pays in lieu of 30 days' advance written notice.
Escalate disputed grounds, pre-2008 service, protected status, material exposure, missing wage data or cases in which reinstatement may be sought.
Take the estimate together with the employment, payroll, notice and evidence record into a focused review of the ground, procedure and available remedy.
