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Notice period buyout calculator

Leaving before your notice period ends? Estimate the amount your employer may recover for the days you don't serve.

  • Indian rules
  • By the Gleexa team
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  • Last reviewed
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Many Indian companies ask for a 60- or 90-day notice period, but new employers often want you to join sooner. A notice buyout means paying your current employer for the days you don't serve. This calculator works out the amount.

How the buyout amount is calculated

Days to buy out = notice period − days already served − leave adjusted (if allowed)Pay per day = monthly pay ÷ 30 (or ÷ 26 working days, depending on your company's policy)Buyout amount = days to buy out × pay per day

Whether the monthly pay means basic pay or gross salary depends on your contract or HR policy. Basic is common and far cheaper, so check before you agree to a figure.

Worked example

Example: 90-day notice, 30 days served, monthly basic ₹60,000

Days left = 90 − 30 = 60.

Pay per day = ₹60,000 ÷ 30 = ₹2,000.

Buyout = 60 × ₹2,000 = ₹1,20,000.

If your company used gross pay of, say, ₹1,00,000 a month, the same buyout would cost ₹2,00,000.

Ways to reduce what you pay

  • Ask the new employer to reimburse it. It's common, especially for experienced hires. Get it in the offer letter.
  • Adjust earned leave. Some companies let unused leave reduce the notice period.
  • Negotiate an early release. If your work is handed over, managers often agree to a shorter notice period without payment.
  • Check the full and final settlement. The buyout is often deducted from your last salary and leave encashment rather than paid upfront.

If a new employer reimburses the buyout, that reimbursement is usually taxed as part of your salary. Keep the relieving letter and payment proof.

How to use this calculator

  1. Choose whether your company recovers on basic or gross pay.
  2. Enter your monthly pay, notice period and days you'll serve.

FAQs

Can my new employer pay the buyout?

Some do, especially for urgent hires. Ask during the offer; it's often negotiable.

Is notice pay recovered on basic or gross pay?

It depends on your contract. Check your offer letter or HR policy.

Results are estimates for resident individuals under 60 and aren't tax, legal or financial advice. For your own return, check with a chartered accountant. Spotted a mistake? Tell us.

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Notice Period Buyout Calculator India | Gleexa