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Notice Period Buyout Calculator (India)

Work out how much buying out the rest of your notice period would cost, using your own employer's rules — whether it's based on basic or gross pay, how the daily rate is counted, and whether leave can be adjusted.

Updated

Buyout is calculated on
Policies differ; many use basic, some use gross. Check your HR policy or offer letter.
Daily rate = monthly pay divided by
A 30-day month is the most common convention; some employers use the calendar days in the month.
Will your new employer reimburse the buyout?

Estimated notice buyout

₹1,00,000

60 days × ₹1,667/day

How it adds up

Notice period
90 days
Unserved notice
60 days
Days to buy out
60 days
Daily rate (basic pay ÷ 30)
₹1,667
Buyout amount
₹1,00,000
Net cost to you
₹1,00,000

If you leave after serving 30 of 90 notice days, expect roughly ₹1,00,000 to be recovered in your full and final settlement — check the exact policy with HR.

Switching jobs?

Help the next person decide: rate your current employer. Anonymous, no sign-up, about 2 minutes.

How notice buyouts usually work

There's no single legal formula for a notice buyout for private-sector employees in white-collar roles. Whether a buyout is allowed at all, and how it's calculated, is set by your appointment letter and your employer's HR policy. The usual approach is:

Buyout = unserved notice days × (monthly pay ÷ days in month)

So with a 90-day notice period, 30 days served and a monthly basic of ₹50,000 on a 30-day convention, the buyout is 60 × ₹1,667 ≈ ₹1,00,000. The amount is usually recovered in your full and final settlement, or paid by you (or your new employer) before you're relieved.

Basic pay or gross pay?

This makes the biggest difference. Many employers calculate the buyout on basic pay; others use gross pay, which can double the amount. Your appointment letter or exit policy should say which. If it doesn't, ask HR in writing before you agree to a last working day.

Adjusting earned leave against notice

Some employers let you set unused earned leave against the notice period, which shortens what you need to buy out. Others require the full notice to be served and pay out leave encashment separately in the final settlement. This is entirely policy-dependent — only tick the leave option above if your employer allows it.

Ask for early release first

Before paying a buyout, ask your manager for early release. Many managers agree if your work is handed over properly. Put the request in your resignation email with a specific proposed last day and a short handover plan. If your new employer wants you sooner, also ask whether they'll reimburse the buyout — it's a common negotiation point, and worth asking before you commit to a joining date.

What this calculator doesn't cover

  • Tax and GST treatment of notice pay recovery varies and has been disputed; check how it appears on your final payslip and full and final settlement statement.
  • Other recoveries in the final settlement, such as a joining bonus clawback or training bond.
  • Different notice terms during probation, which are often shorter.

This is an estimate, not legal advice. Your contract, HR policy and state rules decide the actual amount.

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