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Retirement Benefits

yvonne  
Guest
Thu, 13 Nov 2008 10:31:49 AM  (Last updated: Thu, 13 Nov 2008 12:52:50 PM)

How to calculate a retirement benefits? Is there any act cover this benefits or up to the company policy?

example : Retirement Date = 11 Nov 08

Date Joined = 1 Apr 1990

Last Salary =RM3000

Entitlement Days = 20 days for service more than 10 yrs

Calculation = (RM3000*12/365days) x [(18 yrs x 20 days) + (222/365 x 20 days)]

= RM98.63 x 372 days

= RM36690.40

OR

Calculation = (RM3000/26 days) x 372 days

= RM115.38 x 372 days

= RM42923.07

My main concern is whether the salary per day we should use 26 days to divide or use the termination benefits (RM3000x 12 mths/ 365 days)?

KL Siew
Administrator
Thu, 13 Nov 2008 12:52:50 PM

It looks like you based the calculation of the Employment(Termination and Layoff Benefits)Regulations. That Regulations is meant for termination of service for employees covered by the Employment Act and not for retirement. So far there is not law pertaining to retirement benefits in the private sectors. It is up to individual companies.

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