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End of Service Benefits Formula:
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End of Service Benefits refer to the total compensation an employee receives upon termination of employment, including gratuity payments, payment for unused leave days, and any other contractual allowances owed to the employee.
The calculator uses the following formula:
Where:
Explanation: This calculation provides a comprehensive view of all financial benefits an employee is entitled to receive upon employment termination.
Details: Accurate calculation of end of service benefits ensures employees receive their full legal entitlements and helps employers maintain compliance with labor laws and contractual obligations.
Tips: Enter all benefit components in the same currency. Ensure values are accurate and reflect the actual amounts due according to employment contracts and local labor regulations.
Q1: What is included in gratuity calculations?
A: Gratuity typically includes payment based on years of service, final basic salary, and any applicable multipliers according to local labor laws.
Q2: How is unused leave pay calculated?
A: Unused leave pay is calculated based on the number of unused leave days multiplied by the daily salary rate at the time of termination.
Q3: What are considered "other allowances"?
A: Other allowances may include housing allowance, transportation allowance, bonuses, or any other contractual benefits specified in the employment agreement.
Q4: Are end of service benefits taxable?
A: Tax treatment varies by jurisdiction. Consult local tax regulations to determine if benefits are subject to income tax.
Q5: When should end of service benefits be paid?
A: Payment timelines are typically specified in employment contracts or local labor laws, often within a specific period after employment termination.