Three key financial aspects after discharge: one-time separation pay, military service counting toward work seniority, and tax deductions for self-employed veterans

There are no direct costs involved. Upon discharge, the military transfers your social insurance records and payments to you, and you then register these with the local social insurance office.

The first benefit is outlined in the Regulations on the Resettlement of Veterans: “Veterans who choose to work independently receive a one-time separation payment based on their years of service.” This payment is funded by the central government, with specific amounts determined by relevant authorities and adjusted periodically. Additional bonuses are provided in five tiers: 25% for recipients of medals or honorary titles, 20% for those with first-class combat achievements or first-level commendations, 15% for second-class combat achievements or first-level commendations, 10% for third-class combat achievements or second-level commendations, and 5% for fourth-class combat achievements or third-level commendations. The regulations also state that veterans who do not find employment immediately may claim unemployment benefits, with their military service years counted toward insurance contributions, except for those placed in retirement or supported through other programs. The second benefit comes from the Veterans Protection Law: “Military service years are counted toward overall work seniority, which is then combined with any subsequent work history.” This seniority is also factored into pension, medical, and unemployment insurance calculations, and veterans’ service is recognized as equivalent to grassroots work experience under the Military Insurance Law. Finally, a 2023 joint announcement by the Ministry of Finance, State Taxation Administration, and Veterans Affairs Ministry allows self-employed veterans to deduct up to 20,000 yuan per year from their taxes for three years, with a possible 20% increase; this amount is subtracted from the total tax owed rather than provided as a cash payment. Employers hiring veterans may also receive a deduction of up to 6,000 yuan per employee per year, with a 50% increase possible. These provisions are effective from January 1, 2023, through December 31, 2027. It is important to note that this tax benefit is separate from any local “one-time economic subsidies” provided by individual regions, which are determined independently and may vary widely.

国务院、中央军委 (2024). 退役军人安置条例（国务院、中央军委令第 787 号，第二十一、二十二、七十四、八十一、八十五条）. https://www.gov.cn/gongbao/2024/issue_11526/202408/content_6969192.html；退役军人事务部 (2020). 关于一次性退役金的十个问题（转载《中国退役军人》2020 年第 10 期）：「基本标准。士兵服现役每满一年，发给4500元」「退役金标准适时调整」. https://www.mva.gov.cn/sy/zzxc/202011/t20201113_43153.html；贵州省退役军人事务厅 (2024). 一次性退役金增发，重要变化！：「现在执行的标准是：士兵服现役每满一年，发给4500元」. http://tyjrswt.guizhou.gov.cn/zfxxgk/fdzdgknr/zdlyxx_5621158/tyaz_5621161/202408/t20240809_85367194.html；烟台市牟平区人民政府 (2025). 答复中引《烟台市退役军人事务局、烟台市财政局关于调整自主就业退役士兵一次性经济补助标准的通知》：「2024年退出现役的每服役一年补助6000元」. https://www.muping.gov.cn/art/2025/11/10/art_105032_2960250.html；全国人大常委会 (2020). 退役军人保障法（第四十二、四十四、五十条）. http://www.mod.gov.cn/gfbw/fgwx/flfg/16048597.html（国防部刊登）；全国人大常委会 (2012). 军人保险法（第十六、二十三条）. https://flk.npc.gov.cn/detail?id=2c909fdd678bf17901678bf73e160645（国家法律法规数据库）；财政部、税务总局、退役军人事务部 (2023). 关于进一步扶持自主就业退役士兵创业就业有关税收政策的公告（2023 年第 14 号）. https://www.gov.cn/zhengce/zhengceku/202308/content_6896456.htm

The regulations only say the amount is set separately by the competent departments. The official figure that can be found is "4500 yuan for each full year of active service" in a 2020 article on the Ministry of Veterans Affairs website. The same article also says "adjusted when appropriate." The extra percentages in that article no longer match the current regulations. Follow the regulations. In an August (8) 2024 article, the Guizhou provincial department of veterans affairs, under the new regulations, still writes: "The standard now in force is: 4500 yuan for each full year a soldier serves." RMB 4500 is the standard listed in this provincial article. No formal document establishing the current national standard was found; confirm with the local veterans affairs authority at discharge. Do not mix this with a local lump-sum economic subsidy. That is another sum, set and paid by the locality. For example, Yantai paid 6000 yuan for each year of service to people discharged in 2024. New figures in guides mostly have no source, and some simply mix the two sums together. During a conscript's service, the family can also receive a separate family preferential allowance. The Military Service Law only says "the standard is set by the local people's government, and central finance gives a fixed subsidy." For the amount, ask the county people's government that approved your enlistment. The tax sum is the most tax you can pay less each year, not money paid into your hands. If the business does not get going, you will not use the full amount, so the benefit magnitude of the whole item is set only at "medium." The Regulations on Promoting Employment and Entrepreneurship of Veterans, in force from August (8) 1, 2026, add a further rule: a skilled-worker occupational qualification certificate earned during service is valid nationwide after discharge.