My colleague was laid off, and she requested N+1 compensation, which the company agreed to.

The HR manager said, "Your basic salary is 2800, and you've worked here for 4 years in total, so the severance pay is 14,000."
However, the colleague did not agree.
She argued on the spot with the HR manager, saying her take-home pay each month was more than 2800.
She took out a screenshot of her payslip from her phone, which showed a basic salary of 2800, performance bonus of 3000, transportation allowance of 500, meal allowance of 300, and a perfect attendance bonus of 200, totaling a net monthly income of 6800.
The HR manager said the company only calculates severance based on the basic salary, as per company policy.
The colleague countered, saying she had checked the labor law, which states that severance should be calculated based on the average salary of the 12 months prior to resignation, not just the basic salary.
The HR manager refused to budge, insisting that the company has always calculated it this way, and previous dismissals were also based on the basic salary for severance.
The colleague did not accept this, arguing that company policies cannot override the law, and the compensation must be calculated according to legal regulations.
Afterward, she approached the HR manager several times, but they couldn't reach an agreement.
She printed out her salary statements, which clearly recorded her actual monthly income over the past 12 months, averaging around 6800.
She showed her payslips and relevant clauses of labor law to the HR manager, but he still insisted on using the basic salary, claiming performance bonuses and allowances are not fixed income and cannot be included in the severance calculation base.
At a loss, she turned to the company leadership.
The leader said this matter was under HR's jurisdiction and advised her to negotiate further with the HR manager.
The colleague felt the company was deliberately underpaying her severance and was very dissatisfied.
When negotiations failed, she decided to pursue legal action.
She consulted a lawyer, who clearly told her that the law stipulates the calculation base for economic compensation is the average salary of the 12 months before resignation, including basic salary, performance bonuses, bonuses, allowances, and all fixed income.
The company's practice of only counting basic salary is illegal.
She relayed this to the HR manager, but he still refused to agree, saying the company has its own rules and regulations and cannot make an exception for her.
Unable to resolve the issue, she filed for labor arbitration.
During arbitration, the company stuck to its calculation method, presenting the employee handbook, which indeed states that severance is calculated based on the basic salary.
However, the arbitration committee ultimately supported her claim, ruling that the calculation base should be the average salary.
In the end, the company calculated her severance based on a 6800 salary, which for 4 years amounts to 5 months' wages, totaling 34,000.
She received the compensation she was entitled to, and the matter was finally settled.
Many people in our office didn't know there were so many nuances to severance pay.
Usually, everyone only knows about N+1 but isn't clear on what income should be included in the calculation base.
Many companies set a low basic salary, paying the rest as performance bonuses or allowances, perhaps just to reduce the severance they need to pay when dismissing employees later.