Does economic compensation include social security?

Legal analysis: Economic compensation includes social security. It also includes bonus, overtime pay and economic compensation = compensation time × average salary before your resignation 12 months (the algorithm of average salary: all wages payable in the current month, that is, the amount before deducting personal insurance and provident fund). Resignation compensation is a provision in the labor law that gives necessary economic compensation to employees when they leave their jobs.

Legal basis: People's Republic of China (PRC) Labor Contract Law.

Article 41 Under any of the following circumstances, if it is necessary to lay off more than 20 employees or less than 20 employees, but it accounts for more than 10% of the total number of employees in the enterprise, the employing unit may explain the situation to the trade union or all employees 30 days in advance, report the reduction plan to the labor administrative department after listening to the opinions of the trade union or employees, and may lay off employees:

(1) Conforming to the provisions of the Enterprise Bankruptcy Law;

(two) serious difficulties in production and operation;

(three) the enterprise has changed production, major technological innovation or adjustment of business mode, and it still needs to reduce staff after changing the labor contract;

(4) Other major changes have taken place in the objective economic situation on which the labor contract was concluded, which makes it impossible to perform the labor contract.

When reducing personnel, priority should be given to retaining the following personnel:

(1) Concluding a long-term fixed-term labor contract with the unit;

(2) Concluding an open-ended labor contract with the unit;

(3) there are no other employees in the family, and there are elderly people or minors who need to support them.

If the employing unit reduces its staff in accordance with the provisions of the first paragraph of this article and recruits staff again within six months, it shall notify the retrenched staff and give priority to the retrenched staff under the same conditions.

Article 42 The employing unit shall not terminate the labor contract in accordance with the provisions of Articles 40 and 41 of this Law if the laborer is under any of the following circumstances:

(1) The worker who is engaged in the operation exposed to occupational hazards fails to undergo the occupational health examination before leaving his post, or the suspected occupational disease patient is in the period of diagnosis or medical observation;

(2) Suffering from occupational diseases or work-related injuries in this unit and being confirmed to have lost or partially lost the ability to work;

(3) Being sick or injured non-work-related, and within the prescribed medical treatment period;

(four) female workers during pregnancy, childbirth and lactation;

(5) Having worked continuously in this unit for fifteen years and being less than five years away from the statutory retirement age;

(6) Other circumstances stipulated by laws and administrative regulations.