Retrenchment Compensation Calculator

Every workman who has been in continuous service for not less than one year is entitled to 15 days’ wages for every completed year of continuous service as retrenchment compensation.

Employee Details

Eligibility Criteria

  • Minimum 1 year (365 days) of continuous service required
  • Compensation = 15 days' wages for every completed year
  • Only completed years of service are counted
  • Legal standard uses 26 working days per month

Formula:
Compensation = (Basic + DA ÷ 26) × 15 × Completed Years