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End of Service Formula:
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End of Service (EOS) calculation determines the gratuity payment an employee is entitled to receive upon termination of employment. It's typically based on the employee's final salary and years of service.
The calculator uses the EOS formula:
Where:
Explanation: For the first 5 years of service, employees receive half their salary per year. For years beyond 5, they receive their full salary per year.
Details: Accurate EOS calculation is crucial for ensuring fair compensation upon employment termination, complying with labor laws, and maintaining positive employer-employee relationships.
Tips: Enter the employee's final salary and total years of service. The calculator will automatically determine the appropriate calculation based on whether service years exceed 5 years.
Q1: Are partial years of service calculated?
A: Yes, partial years are typically calculated proportionally based on completed months of service.
Q2: Does this calculation apply to all employment types?
A: EOS calculations may vary based on employment contracts, company policies, and local labor laws. Always verify with relevant regulations.
Q3: Are there any exceptions to this formula?
A: Some jurisdictions or employment contracts may have different calculation methods, especially for long-serving employees or specific industries.
Q4: How is the final salary determined?
A: Final salary typically refers to the basic salary at the time of termination, excluding bonuses and allowances unless specified otherwise.
Q5: Is EOS calculation mandatory for all employees?
A: Requirements vary by jurisdiction. Many countries mandate EOS payments after a minimum period of service, while others treat it as a contractual benefit.