Notice period buyout calculator
Buyout = notice days you will not serve × your daily rate. The daily rate is normally monthly salary ÷ 30, on basic or gross pay as your appointment letter says. Enter your figures below to see the amount and the working.
Estimated buyout
₹1,00,000
Shortfall of 60 days (90 notice − 30 served) × daily rate of ₹1,667 (monthly salary ÷ 30).
An estimate from the figures you entered. Your appointment letter and company policy decide the salary base, the day count and whether leave can be adjusted. Nothing you type here leaves your browser.
A worked example
| Notice period in the letter | 90 days |
|---|---|
| Days served | 30 days |
| Shortfall | 60 days |
| Monthly basic salary | ₹50,000 |
| Daily rate (÷ 30) | ₹1,667 |
| Buyout | 60 × ₹1,667 = ₹1,00,000 |
On gross pay of ₹80,000 the same 60 days would cost ₹1,60,000, which is why the salary base in your letter matters as much as the number of days.
Frequently asked questions
How is notice period buyout calculated in India?
Take the notice days you will not serve and multiply them by a daily rate. The daily rate is usually your monthly salary divided by 30, though some employers divide by the calendar days in the month or by 26 working days. Your appointment letter or HR policy says which salary figure and which divisor apply.
Is buyout worked out on basic salary or gross salary?
Whichever your appointment letter names. Many letters say basic salary, many say gross or monthly CTC, and the difference can be large. If the letter is silent, ask HR to confirm the base in writing before you resign.
Can I use earned leave instead of paying for the shortfall?
Only if your employer agrees or the policy allows it. Some companies let you set unused earned leave against the notice period, others pay out the leave separately in the full and final settlement and still recover the shortfall.
Can my employer refuse to let me buy out my notice period?
Often yes, if the contract makes buyout the employer’s choice. A court will rarely force someone to keep working, but the employer can usually recover what the contract specifies and may hold back the relieving letter until it is settled, which is why it pays to agree the last day and amount in writing.
Does my new employer pay the buyout?
Sometimes. Hiring companies often reimburse some or all of the buyout to secure an earlier joining date. Ask for it in your offer negotiation and get the amount written into the offer letter.
Check the notice clause before you resign
Upload your appointment letter and see the notice, recovery and bond terms explained against Indian law.
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