Legal basis: Enterprise Bankruptcy Law
Article 113 After the bankruptcy expenses and interest-bearing debts are paid off, the bankruptcy property shall be paid off first in the following order: (1) The wages, medical care, disability allowance and pension expenses owed by the bankrupt to the employees, the basic old-age insurance and basic medical insurance expenses owed to the employees' personal accounts, and the compensation that should be paid to the employees according to laws and administrative regulations;
(2) Social insurance premiums and taxes owed by the bankrupt other than those specified in the preceding paragraph;
(3) Ordinary bankruptcy claims.
If the bankruptcy property is insufficient to pay off the repayment requirements in the same order, it shall be distributed in proportion.
The wages of directors, supervisors and senior managers of bankrupt enterprises shall be calculated according to the average wages of employees of the enterprise.