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ASSG 2 - Indemnity - Correct Answers

This document contains 5 questions calculating net wages payable for employees resigning from their jobs in various situations. Each question provides details of the employee's date of resignation, length of service, monthly salary, and notice period. It then shows the calculations to determine indemnity pay based on length of service and notice period, salary for the final month of work, and the net wages payable. Negative net wages indicate that indemnity pay exceeds the final month's salary.

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HAZRAFI ABD. HAMID
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407 views3 pages

ASSG 2 - Indemnity - Correct Answers

This document contains 5 questions calculating net wages payable for employees resigning from their jobs in various situations. Each question provides details of the employee's date of resignation, length of service, monthly salary, and notice period. It then shows the calculations to determine indemnity pay based on length of service and notice period, salary for the final month of work, and the net wages payable. Negative net wages indicate that indemnity pay exceeds the final month's salary.

Uploaded by

HAZRAFI ABD. HAMID
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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HRM582/581

EXERCISES – INDEMNITY

QUESTION 1
Ah Chong resigned from the company after working for 3 ½
years. His last day is on 21 March 2016 with a salary of
RM2200 per month. Ah Chong has served 3 weeks’ notice of
resignation only because his new employer wants him to start
as soon as possible. Calculate the net wages payable

LOS 3 1/2 years = 6 w


Indemnity = 2200/31 X (3X7) = 1490.32
Salary Mac 2016 = 2200/31 X 21 = 1490.32
Net salary payable = 0

QUESTION 2
Rita has been working with TZ Company Sdn Bhd since 1
January 2016 and decides to resign with effect from 1 May
2018 by giving 4 weeks’ notice. His monthly salary is RM2150
which include mileage claim of RM150. Calculate the net
wages payable

DOJ 1/1/2016
DOR 1/5/2018
Last day 30/4/2018
LOS 1/1/2016 - 2/4/2018 = >2 years = 6 w
Indemnity = 2150 -150/30 X (2x7) = 933.33
Net salary payable = 2000 - 933.33 + 150 = 1216.67
QUESTION 3
Azrul commences works as a clerk in an electrical supplies
company since July 2007 and earns RM1,500 monthly. He
tendered his resignation on 25th June 2018 by giving 24-hours’
notice to his employer. His last drawn salary was RM2,000 per
month. His employment contract is silent on the notice of
termination. Calculate his net salary payable for the month of
June 2018.

Last day 25/6/2018


LOS >5 years = 8 w
Indemnity = 2000/30 X (8x7) = 3733.33
Salary June 2018 = 2000/30 X 25 = 1666.67
Net salary payable = 1666.67 - 3733.33 = (2066.66)

QUESTION 4
Suresh tendered his resignation on 30th November 2018 by
giving 2 weeks’ notice after working with the company for 4
years. His last drawn salary was RM2,500 per month. Calculate
his net salary payable.

Last day 14/12/2018


LOS 4 years = 6 w
Indemnity = 2500/31 X (4X7) = 2258.06
Salary Dec 2018 = 2500/31 X 14 = 1129.03
Net salary payable = 1129.03 - 2258.06 = (1129.03)
QUESTION 5
Zaidi commences works as a technician in a manufacturing
since 1 July 2015 and earns RM1,800 monthly. He tendered his
resignation on 15th June 2019 by giving 24-hours’ notice to his
employer. His last drawn salary was RM2,500 per month
including travelling allowance of RM200. His employment
contract is silent on the notice of termination. Calculate his net
salary payable.

Last day 15/6/2019


LOS 4 years = 6 weeks
Indemnity = (2500 – 200)/30 X (6X7) = 3220
Salary June 2019 = 2300/30 X 15 = 1150
Net = 1150 – 3220 + 200/2 = (1970)

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