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Lisa
03/06/2010 08:41:35
Re: termination benefits-definition of wages/calculation

Thanks for such a useful site- its certainly very helpful to many people.
For calculation of termination benefits, what is the definition of "wages"? Does it include fixed allowances and variable allowances- for eg, we pay a daily allowance for each day a person works- which is not payable when he/she is on leave /MC etc?
What about the variable target incentive which is based on company performance- do we need to include this to calculate "true per day wages" based on last 12 months actuals?

Thanks so much for your kind help!
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KL Siew
pesaraonline@gmail.com
03/06/2010 09:51:55
You may get the info by reading up the Employment(Termination and Layoff Benefits)Regulations
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Ronnie
lrteden@yahoo.com
21/09/2010 01:28:37
The said Regulations doesn't stipulate the calculation of "wages". However, there's a commentary that says that "true day’s wages.." should be calculated by dividing the total numbers of days in the month and not by 26 days and for the true day's wages over a period of twelve month immediately preceeding the relevant date should be divided by 365 days.Shouldn't the denominator be 261 days for companies who operate 5-day week?
Also, is the company liable to pay the employer's portion of EPF for the layoff benefits, as this is a statutory deduction?
Thanks
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