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
Calculation = (RM3000/26 days) x 372 days
= RM115.38 x 372 days
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)?
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.