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Termination Benefits : how to calculate

choya
Member
Mon, 06 May 2013 03:37:56 PM  (Last updated: Sat, 11 May 2013 12:38:23 AM)

Hi,

Need help calculating this to get final figure as i got this formula from the labour office regarding the pay out for termination.

Please do correct me if the formula is wrong. 

Basic Salary : 4,400

Date of employment : 1 May 2009.

Formula :

12 Mths / 365 Days  X  15 days  X 4 Years

Please help and advice. Thank you.

KL Siew
Administrator
Mon, 06 May 2013 05:40:01 PM

If you want to follow the EA, you are right.

choya
Member
Mon, 06 May 2013 07:36:25 PM

Thank you KL Siew for the confirmation.

However could you or anyone please help me out wit the calculation? is this calculation correct?

Salary : 4,400

Date Join : May 2009
Date terminated : May 2013
Formula :
12 Months Salary /  365 days     X    Period of Employment    X    Entitlement 15 days per year
=  [ 4,400 x 12 / 365 ]  X   [ 4 Years   X   (4 years x 15 days) ]
=  144.65  X  64
9,257.60

mdkamil
Contributor
Fri, 10 May 2013 04:50:05 PM

Hi amy_y,

I used this formula:

(Basic Pay/26) x days entitled x years of service

So in your case, I will calculate as

(4400/26) x 15 x 4 = 10,153.85

I don't understand your calculation, 144.65 x 64 (where does this 64 come from?)

choya
Member
Fri, 10 May 2013 07:20:18 PM

Thank you so much mdkamil!

but where did u get the 26 from?

mdkamil
Contributor
Sat, 11 May 2013 12:38:23 AM
Originally posted by choya on Fri, 10 May 2013 07:20:18 PM

Thank you so much mdkamil!

but where did u get the 26 from?

(Basic Pay / 26) is the standard calculation for Ordinary Rate of Pay (ORP) as stated in the EA1955.

Where an employee is employed on a monthly rate of pay, the ordinary rate of pay shall be calculated according to the following formula:

monthly rate of pay / 26

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