The wages, medical care, disability allowance and welfare expenses of employees are included in the basic old-age insurance and medical insurance expenses of employees' personal accounts, as well as the compensation that should be paid to employees according to laws and administrative regulations. (The compensation is calculated according to the calculation length: one month's salary for one year, one month's salary for less than one year and six months, and one month's salary for less than six and a half months). If the bankruptcy property is insufficient to pay off the same order, it shall be distributed in proportion.
Legal basis: Article 113 of the Bankruptcy Law of People's Republic of China (PRC), after the bankruptcy expenses and debts are paid off, the bankruptcy property shall be paid off in the following order:
(1) Wages, medical care, disability allowance and pension expenses owed by the bankrupt to employees, basic old-age insurance and basic medical insurance expenses owed to employees' personal accounts, and compensation that should be paid to employees in accordance with laws and administrative regulations; (2) Social insurance fees 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.