Social Security Compensation Standard of New Labor Law

According to the provisions of the Labor Contract Law, the economic compensation is calculated according to the number of years the employee has worked in the employing unit, and one month's salary is paid for each full year. For more than six months but less than one year, it shall be counted as one year; Less than six months, still need to pay workers half a month's salary as economic compensation. Of course, there is also an upper limit to economic compensation. If the monthly salary of a worker is too high, which exceeds 3 times the average monthly salary of local workers announced by the people's government of the municipality directly under the central government where the employer is located, the standard for paying economic compensation can only be 3 times the average monthly salary of employees, and the longest period for paying economic compensation shall not exceed 12 years.

Legal basis:

Article 47 Calculation of Economic Compensation The economic compensation is paid according to the standard that the laborer pays one month's salary for each full year of working in this unit in People's Republic of China (PRC) Labor Contract Law. For more than six months but less than one year, it shall be counted as one year; If it is less than six months, economic compensation of half a month's salary shall be paid to the workers. If the monthly salary of workers is three times higher than the average monthly salary of local workers announced by the people's government of the municipality directly under the central government or the city divided into districts where the employer is located, the standard for paying economic compensation to workers is three times the average monthly salary of workers, and the longest period for paying economic compensation to workers shall not exceed 12 years. The monthly salary mentioned in this article refers to the average salary of workers in the twelve months before the dissolution or termination of the labor contract.