In the past two years, I have heard too much about layoffs, and found that many people only know that economic compensation is paid to workers according to the number of years they have worked in the unit and the standard of one month's salary for each full year, but it is not clear how to calculate it
1. Severance compensation base: The so-called monthly salary here is not the basic salary filled in the contract, but the average salary of the employee in the 12 months before the termination or termination of the labor contract, that is, all the pre-tax wages (including bonuses, subsidies, benefits, etc.) in the first 12 months12. If the worker has worked for less than 12 months, the average wage is calculated based on the number of months actually worked.
2. Determination of severance compensation: Article 47 of the Labor Contract Law stipulates that economic compensation shall be paid to the employee according to the standard of one month's salary for each full year of the employee's service in the employer. where it is more than six months but less than one year, it is calculated as one year; If it is less than six months, the worker shall be paid half a month's salary.
Monthly notice payment: Under normal circumstances, the company and the employee will leave the company after the handover is completed, so the company will compensate for 1 month's salary.
4. The upper limit of the amount and duration of severance compensation: The "Labor Contract Law" stipulates the maximum amount and duration of severance compensation for employees, that is, if the employee's salary is three times higher than the average monthly salary 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 enterprise is located, the calculation standard of the severance shall be paid according to the amount of three times the average monthly salary of the employee, and the payment period shall not exceed 12 years.
5. Individual income tax on severance compensation: the part of the severance severance that exceeds 3 times the average salary of local employees in the previous year shall be taxed according to individual income tax.
In the actual implementation process, the calculation of severance compensation is still relatively large, and the company's culture, leadership style, the company's own strength and so on have a lot to do with it, as a worker, at least you must know the bottom line of the law, protect yourself, in order to live a better life.