1.	The estimated severance pay is calculated on the basis of the employment date, the end date of the labor contract, the date of application of the Labor Standards Act (hereinafter referred to as the Act), the date of conversion to the new system, the average wage, etc., that you fill in.
2.	If the labor contract is terminated according to Article 11, proviso to Article 13, Article 14 and Article 20 of the Labor Standards Act or Article 84 or Article 85 of the Labor Occupational Accident Insurance and Protection Act, the employer shall provide the laborer with the severance pay in accordance with the law.
3.	The principle of application at different stages for severance pay before and after the application of the Act:

(1)	According to Article 84-2 of the Act, the seniority of the laborer shall be counted from the first date of employment.
(2)	For the seniority before the application of the Act, the standards of severance pay shall be calculated in accordance with the then applicable laws and regulations; If there were no applicable laws and regulations, they shall be subject to the rules formulated by each respective business entity itself, or agreed upon by employers and employees (For the seniority before the application of the Act, due to the standards of each business entity varying, the calculation of the estimated severance pay before the application of the Act is not provided with this calculator. Please calculate it by yourself and fill in the field of “The severance pay agreed upon between the employer and employee”.)
(3)	The standards of severance pay on the seniority pension system under the Act shall be calculated in accordance with the provisions of Article 17 of the said Act. If the laborer has already met the requirements for voluntary retirement when he or she is severed, the pension shall be paid for such a period of seniority in accordance with the provisions of Articles 55 and 84-2 of the said Act (Please refer to link 1).
(4)	The standards of severance pay in the new seniority pension system after the implementation of the Labor Pension Act shall be calculated in accordance with Article 12 of the Labor Pension Act.

4.	End date of the labor contract: It refers to the ending date of the term of the labor contract.
5.	The date on which the business entity becomes applicable to the Labor Standards Act: It refers to the date designated by the Ministry to apply to the Labor Standards Act. If you have any questions about the application date of the Labor Standards Act, please refer to link (2), or call our toll-free number 1955 for consultation.
6.	Average wage:

(1)	Paragraph 4, Article 2 of the Labor Standards Act stipulates: “average wage” means the figure reached by dividing the total wages for the six months preceding the day on which an event requiring that a computation be made occurs by the total number of days in that period. In the case of a period of service not exceeding six months, the term "average wage" means the figure reached by dividing the total wages for the service period by the total number of days of that period. In the case of wages which are computed on a daily, hourly, or piecework basis, if the "average wage" figure reached according to the preceding formula is less than 60% of a figure determined by dividing the total wages for the particular service period by the actual number of work days, the "average wage" in this case shall be the 60% figure.
(2)	According to the official letter No.: Tai-1994-Lao-Tung-2-Tzu 25564 issued by the Council of Labor Affairs on April 9, 1994, the "average wage per month" shall be calculated by dividing the total wages of the six months before retirement or severance of the laborer by 6 directly. For example, if the end date of the labor contract of a severed laborer is March 16, 2012, the worker’s average wage is the total wages between September 16, 2011 and March 15, 2012 divided by 6.
(3)	Article 2 of the Enforcement Rules of the Labor Standards Act stipulates that wages and the number of days in the following days or periods shall not be included for the purpose of calculating the average wage referred to in Subparagraph 4 of Article 2 of the Act: 1. The day on which the event occurs requiring calculation to be made, 2. The period of medical treatment for occupational injury, 3. The period in which wages are paid at half the normal rate in accordance with Paragraph 2 of Article 50 of the Act, and 4. Where, due to a natural disaster, an unexpected event, or other force majeure, the employer cannot continue business operations which results in employees failing to work. 5. Employees who take ordinary sick or injury leave according to the rules of leave. 6. Employees who apply for menstrual leave, maternity leave, family care or recuperation leave and receive reduced wages according to the Act of Gender Equality in Employment. 7. Employees on unpaid leave.
(4)	Paragraph 3, Article 2 of the Labor Standards Act stipulates: “Wages mean the remuneration which a worker receives for his/her services rendered, including wages, salaries and bonuses, allowances and any other regular payments regardless of the name which may be computed on an hourly, daily, monthly and piecework basis, whether payable in cash or in kind.”

7.	Standards of severance pay:

(1)

The seniority under the Labor Standards Act: Article 17 of the Labor Standards Act stipulates that the severance pay that is equal to the average wage of 1 month for each full year of service shall be paid; for the seniority of less than 1 year, it is to be paid proportionally; for the seniority of less than one month, it shall be calculated as 1 month.( Please refer to the Decree No. Lao-Tung-4-Tzu-1010132306 issued by the Council of Labor Affairs on September 12, 2012. )

(2)

The seniority under the Labor Pension Act: According to Article 12 of the Labor Pension Act, the severance pay that is equal to the average wage of half a month for each full year of service shall be paid; for the seniority of less than 1 year, it is to be paid proportionally, which is limited to the average wage of up to 6 months.( Please refer to the Decree No. Lao-Tung-4-Tzu- 1010132304 issued by the Council of Labor Affairs on September 12, 2012 )