Retrenchment & Termination Benefits Calculator
Estimate your statutory minimum retrenchment/termination compensation under the Employment (Termination and Lay-Off Benefits) Regulations 1980.
Total qualifying wages over the last 12 months ÷ 12, including wage-forming allowances.
Total Termination Benefit
RM3,846.58
This estimate assumes Employment Act coverage in Peninsular Malaysia or Labuan. Employees above RM4,000 need qualifying work categories (such as manual labour) or contractual entitlement; Sabah and Sarawak have separate labour ordinances.
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.
- Daily wage = average monthly wages over the last 12 months × 12 ÷ 365.
- 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: 2026-09-18 · Result type: user-input estimate
Frequently Asked Questions
Who qualifies for termination or retrenchment benefits in Malaysia?
How are termination/lay-off benefits calculated?
Is retrenchment benefit the same as EIS?
Related Calculators
If you're retrenched or your contract is terminated, the Employment (Termination and Lay-Off Benefits) Regulations 1980 give you a statutory minimum payout. It applies to employees covered by the Employment Act with at least 12 months of continuous service. This guide covers Peninsular Malaysia and Labuan. Above RM4,000, statutory termination benefits require a qualifying work category such as manual labour; contractual benefits may also apply. Sabah and Sarawak have separate labour ordinances.
How much?
The payout is a number of days' wages for each year of service:
- Less than 2 years' service: 10 days' wages per year
- 2 to less than 5 years: 15 days' wages per year
- 5 years or more: 20 days' wages per year
A day's wage is total qualifying wages over the last 12 months ÷ 365, and incomplete years are pro-rated by month. Example: on an average RM2,600/month with 3 years' service → 15 × 3 × (2,600 × 12 ÷ 365) = RM3,846.58.
When it is NOT payable
You're not entitled if you resigned, were dismissed for misconduct, reached retirement age, or your contract was renewed on equal or better terms. Your employment contract may promise more than this statutory minimum — the higher of the two applies.
Work out your figure with the Retrenchment & Termination Benefits Calculator above . If you've been retrenched, you may also qualify for the PERKESO Job Search Allowance — check the EIS Benefits calculator.
Informational guide only, not legal advice. Confirm your entitlement with the Labour Department (JTKSM) or a lawyer.