In n+ 1 salary rules, salary refers to pre-tax salary.
The basis of n+ 1 compensation rules is as follows:
1, salary, the algorithm is the average salary of employees 12 months before resignation or dismissal, that is, the salary amount before deducting personal income tax and five insurances and one gold;
2. The working years shall be counted as one month for each full year, one year for more than six months and less than one year, and half a month for less than six months.
The calculation standard of n+ 1 compensation is as follows:
1. The economic compensation shall be based on the employee's working years in the company, and the employee shall be paid one month's salary every year;
2 employees who have worked for more than six months but less than one year shall be calculated according to the standard of one year;
3. If the employee has worked for less than six months, pay the employee economic compensation for half a month's salary;
4. The economic compensation is calculated according to the employee's due salary and the average salary of 12 months before the termination of the labor contract;
5. If the monthly salary of employees is three times higher than the average monthly salary of local employees announced by the municipal people's government of the municipality directly under the central government or the city where the company is located, economic compensation shall be paid according to the amount of three times the average monthly salary of employees;
6. The maximum period for paying economic compensation to workers shall not exceed twelve years.
To sum up, n plus 1 salary is before tax. If the amount of N+ 1 economic compensation received by the laborer exceeds three times the average salary of the local employees in the previous year, the excess part needs to pay personal income tax, so it is pre-tax, and the laborer must declare a tax; N+ 1 If the economic compensation does not exceed 3 times the average salary of local employees in the previous year, personal income tax will not be levied, which is after tax.
Legal basis:
Article 40 of People's Republic of China (PRC) Labor Contract Law
Under any of the following circumstances, the employer may terminate the labor contract after notifying the employee in writing 30 days in advance or paying the employee an extra month's salary:
(1) The employee is sick or injured non-work-related, and cannot engage in the original job or other jobs arranged by the employer after the prescribed medical treatment period expires;
(two) the laborer is not competent for the job, and he is still not competent for the job after training or adjusting his post;
(3) The objective conditions on which the labor contract was concluded have changed greatly, which makes it impossible to perform the labor contract, and the employer and the employee cannot reach an agreement on changing the contents of the labor contract through consultation.