How To Setup & Calculate Employee "Service Termination Benefits"

Service Termination Benefits Calculation

This feature will allow HR users to set up their STB calculation policy and use it while employees’ termination process.

Feature Pages

Service Termination Benefits

User Menu -> System Preferences -> Financial Setup -> Service Termination Benefits 

Through this page, you will be able to define branch STB calculation policy based on labor law or internal policies.

How to Add New STB setup:

By clicking the button Add, the next screen will appear to allow you to add the needed policy setup as the below: 

Field	Description
Name	To add the policy name
Related Termination Type	To select the termination type that is related to this STB policy.
Contract Type	To select the related employee contract type.
Calculation Range	The minimum and maximum STB value amount in months.
Distribute Per Slice	Distribute the STB value based on the number of employee service years.
Include Unpaid Time-offs	To include or exclude unpaid values from the STB amount.
Include Allowances	The employee recurring transactions that included in the STB amount calculation.
Calculation Slices	To add the STB calculation slices based on employee service number of years.

Employee Settlement Calculation

User Menu -> Employees -> Employees Management -> Select the Employee -> Off-boarding -> Termination Salary

To include STB calculation in employee termination salary, all you need is to select the needed STB type based on your setup and then click the button Calculate. After that, you will find the STB amount added to employee settlement details as income type as shown in image 2.4

Read more on how to Off-board an employee Here!