Question

assume that mohd azhan ariffin salary is 1900 per month andwork with rahnil berhad for 5 years. calculate the retrenchment benefit that he  entitle to get?

Answer 1

Following procedure to be followed for calculation of retrenchment compensation

It is obligatory on the part of the employer to pay retrenchment compensation at the rate of 15 days wages for every completed year and to be calculated at the last drawn salary of workman. The calculation of compenstation is to be based from the date of joining and in case an employee has completed 240 days, he will be entitled to 15 days retrenchment compensation besides one month’s noice or salary as if he has worked for one year. 240 days includes Sundays or off days as well as festival or national holidays.

The retrenchment benefit would be as below:

per month salary = 19000

per day compensation = 19000/30 = 634

Per year retrenchment benefit = 15 * 634 = 9510

Retrenchment benefit after 5 years = 9510 * 5 = 47,550/-

Hope this information helps to answer the question