Termination benefits calculator Malaysia
If your employer ends your contract, for example in a retrenchment, the law sets a minimum termination benefit based on your wages and years of service.
Enter your average monthly wages for the last 12 months and how long you have worked to see the minimum amount.
How it's calculated
- Less than 2 years of service: 10 days days' wages for every year.
- 2 to less than 5 years: 15 days days. 5 years or more: 20 days days.
- An incomplete year counts pro rata, to the nearest month.
- One day's wages follows the JTKSM formula: your monthly wages × 12 ÷ 365.
An example
On RM3,000 a month after 3 years: 36,000 ÷ 365 = RM98.63 a day × 15 days × 3 years = RM4,438.35.
Frequently asked questions
When must the termination benefit be paid?
According to JTKSM, no later than 7 days after the termination date.
Can my contract pay less than this?
No. Your contract can set a higher rate, but not one below the minimum in the 1980 Regulations.
Is it on top of pay in lieu of notice?
Yes. The termination benefit is in addition to any indemnity in lieu of notice under section 13 of the Employment Act.
Key terms
- Retrenchment
- Termination because the employer has less or no work for the employee.
- Lay-off
- When the employer does not provide work for a set number of days in a period, as defined in the 1980 Regulations.
The same calculation in other countries
United Kingdom
Canada (English)
Ireland
Australia
New Zealand
South Africa
Singapore
Hong Kong SAR China
Philippines
Kenya
Tanzania
United Arab Emirates
Uganda
Mauritius
Cyprus (English)
Rwanda
Malta
Qatar (English)
Oman (English)
Zambia
Ethiopia
Namibia
Gambia
LesothoUp-to-date official data
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