Calculation of Termination & Lay Off Benefits

Example:

Employee retrenched by company. Worked there for 8 years and 5 months and is earning RM1450 a month. How much should his benefits be?

Entitlement as per Reg 6 of the Employment (Termination & Lay Off Benefits Regulation 1980) = 20 days for every month of service.

Average true days wages = 1450 x 12 / 365 = 47.67 (per day)

8 year and 5 months = 8.4167 months

8.4167 x (47.67 x 20) = 8024.5