Severance Pay (N / N+1 / 2N) Explained
1. What is "N"?
N is years of service: one month's pay per full year; 6–12 months counts as a full year; under 6 months pays half a month.
Salary base: average gross pay over the prior 12 months, including base salary, bonus, allowances and overtime.
2. When does N+1 apply?
The "+1" is pay in lieu of notice. When termination is lawful (e.g. after medical leave the employee can't resume, or proven incompetence) but the company gives no written notice 30 days in advance, it must add one month's pay.
Note: the "+1" is usually based on the final month's pay, not the 12-month average (this calculator uses the monthly average for simplicity — minor deviations possible). In mass economic layoffs, only N is required (with 30-day notice to the union), not N+1.
3. When does 2N apply?
When a company unlawfully terminates the contract (no valid cause, unpaid wages, firing during pregnancy/maternity/nursing), you may claim double statutory severance — 2N. Note: with 2N you generally cannot also claim pay in lieu of notice (there's no such thing as 2N+1).
4. The "3x cap" rule for high earners
If your average monthly pay exceeds 3x the local average wage, the severance base is capped at 3x the average local wage and years counted cap at 12. (This caps the N portion; in some jurisdictions 2N is capped too.)