2nHow to calculate the compensation?Explain the calculation methodology, basis and procedure in deta

Mondo Social Updated on 2024-01-31

In China, when an employer dissolves or terminates a labor contract under certain circumstances, it is required to pay economic compensation to the employee, which is commonly referred to as "compensation". The "2N" compensation here actually refers to twice the standard of economic compensation, which usually occurs when the employer illegally dissolves or terminates the employment contract.

2n" The calculation of compensation is mainly based on the relevant provisions of the Labor Contract Law of the People's Republic of China (hereinafter referred to as the "Labor Contract Law"). Specifically, Article 47 stipulates the method of calculating economic compensation, while Article 87 stipulates the standard of compensation to be paid by an employer when it illegally dissolves or terminates an employment contract, i.e., compensation to be paid to the employee at twice the standard of economic compensation.

1.Determine the monthly wage of the workerMonthly wage refers to the average salary of an employee in the 12 months prior to the termination or dissolution of the labor contract. If the monthly wage of the worker is three times higher than the average monthly wage of the employee in the previous year announced by the people of the municipality directly under the Central Government or the city divided into districts where the employer is located, the standard of economic compensation shall be paid to him at the rate of three times the average monthly wage of the employee.

2.The number of years for calculating severance compensation: It is determined according to the number of years the employee has worked for the employer. One month's salary is paid to the worker for each full year. If it is more than six months but less than one year, it shall be counted as one year;If it is less than six months, the worker shall be paid half a month's salary.

3.Calculate the total amount of severance compensation: The total amount of economic compensation is obtained by multiplying the employee's monthly salary by the number of months of economic compensation.

4.Calculate the indemnitySince the "2N" compensation is twice the severance rate, the calculated total amount of severance is multiplied by 2 to get the amount of the severance award.

Suppose an employee has worked for the employer for 3 years and 7 months, and his monthly salary is 10,000 yuan. Now the employer has illegally terminated the employment contract with the employee.

1.Depending on the number of years of service, the worker should receive 4 months of financial compensation (3 years + 1 month).

2.The total amount of severance compensation is: 10,000 yuan per month for April = 40,000 yuan.

3.The amount of compensation is: 40,000 yuan 2 = 80,000 yuan.

Therefore, the employer is required to pay the employee 80,000 yuan in compensation.

It should be noted that there may be differences in factors such as the level of economic development and the average monthly wage of employees in different regions, so it is necessary to calculate it in combination with local specific regulations in practice. At the same time, with the continuous update and improvement of laws and regulations, the relevant calculation standards and methods may also change. Therefore, it is also necessary to consult the latest laws, regulations and policy documents in a timely manner when dealing with specific cases.

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