In Chinese labor law, disability severance is a lump sum payment made by an employer to an employee whose disability evaluation shows that they are unfit for work, where the employer chooses to discharge the worker.

The rules for disability severance differ by region. For example, Beijing sets the disability severance base rate as the average monthly salary in the city, and the employee may receive anywhere from 3 to 18 months’ worth of severance based on the severity of the disability. Very seriously injured workers are eligible for the 15- and 18-month severance.

In Shanghai, the employee receives between 3 to 12 months’ worth of severance, and in contrast with Beijing, there is no extra payment for very seriously injured workers.