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  3. /Retrenchment / Termination Benefits

Retrenchment & Termination Benefits Calculator

Estimate your statutory minimum retrenchment/termination compensation under the Employment (Termination and Lay-Off Benefits) Regulations 1980.

Basic wage + wage-forming allowances.

Total Termination Benefit

RM4,500.00

Daily wage (monthly ÷ 26)RM100.00
Entitlement (days per year of service)RM15.00
Years of service (pro-rated)RM3.00
Total termination benefitRM4,500.00

Not payable if you resigned, were dismissed for misconduct, reached retirement age, or your contract was renewed on equal or better terms. Your contract may provide more than this statutory minimum.

Assumptions

  • Statutory minimum under the Employment (Termination and Lay-Off Benefits) Regulations 1980.
  • A day's wage is the ordinary rate of pay = monthly wages ÷ 26.
  • 10 / 15 / 20 days per year of service for under 2 / 2–5 / 5+ years respectively.
  • Incomplete years are pro-rated by completed months.
  • Requires at least 12 months of continuous service to qualify.

This calculator provides estimates only. KiraSmart is not financial advice. Please verify with official sources or professionals before making decisions. Read full disclaimer

Information last reviewed: 2026-07-02 · Result type: official-rate implementation

Frequently Asked Questions

Related Calculators

Salary Calculator Malaysia→Overtime Pay Calculator Malaysia→EIS Unemployment Benefits Estimator→
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