How it is calculated
Under the Employment (Termination and Lay-Off Benefits) Regulations 1980:
- Under 2 years of service: 10 days’ wages for each year
- 2 to under 5 years: 15 days’ wages a year
- 5 years or more: 20 days’ wages a year
The band is set by your total length of service and applies to every year. An incomplete year is pro-rated to the nearest month. Benefit = daily wage × days per year × (months of service ÷ 12).
The regulations use your average daily wage over the last 12 months. This calculator uses monthly wage ÷ 26 by default; enter your actual average daily wage if you know it.
Worked example
Wage RM4,000 a month, daily wage RM4,000 ÷ 26 = RM153.85:
| Service | Days per year | Total days | Benefit |
|---|---|---|---|
| 1 year 6 months | 10 | 15 | RM2,307.69 |
| 2 years 0 months | 15 | 30 | RM4,615.38 |
| 3 years 4 months | 15 | 50 | RM7,692.31 |
| 7 years 9 months | 20 | 155 | RM23,846.15 |
| 11 months | – | – | Not eligible |
Why your number may differ
Your actual average daily wage over the last 12 months may differ from monthly wage ÷ 26, especially if your pay changed. Rounding part-months to the nearest month is this calculator’s simplification. Your contract, a collective agreement or a voluntary separation scheme (VSS) may pay more than this minimum. Notice pay is paid separately.