Free tool
Notice Period Buyout Calculator
Your notice
Check your appointment letter. Gross is the most common basis and the usual reading where the contract is silent.
60 days unserved
Estimated buyout
₹1,60,000
for 60 unserved days
- Monthly gross
- ₹80,000
- Per day (monthly / 30)
- ₹2,667
- Unserved days
- 60
- Payable
- ₹1,60,000
Your contract governs. Some employers calculate on basic rather than gross, some use a 30-day month and others use actual calendar days, and a few waive buyout entirely at their discretion. Read the appointment letter before you rely on any figure here.
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The basis matters more than the formula
Almost every Indian appointment letter uses the same arithmetic: monthly salary divided by 30, multiplied by unserved days. The figure people get wrong is not the formula, it is which salary goes into it.
On a package where gross is ₹80,000 and basic is ₹32,000, a 90-day buyout is ₹2.4 lakh on gross and under ₹1 lakh on basic. That is the whole negotiation. Read the clause before you open the conversation, and if it is ambiguous, ask HR to confirm the basis in writing.
Two things your employer cannot do: withhold gratuity you have earned after five years of continuous service, or block your provident fund, in order to force you to serve notice. Both are statutory entitlements.
If you are moving through a recruiter, raise the buyout during the offer conversation rather than after accepting. For senior and hard-to-fill roles employers frequently absorb it as a joining cost, but only if asked at the right moment.
Planning a move?
Notice periods are the single biggest cause of hiring timelines slipping in India. Our note on notice periods and hiring timelines covers it from both sides, and the salary calculator will tell you what the new package is actually worth monthly.
Buyout, gratuity and PF
The standard formula is monthly salary divided by 30, multiplied by the number of unserved days. What varies is which salary the contract names: monthly gross, monthly basic or full CTC. Gross is the most common basis and the usual reading where a contract is silent.
Yes. Buyout is a contractual option, not a statutory right, and many employers can decline it. Some make it discretionary and others do not offer it at all. Check your appointment letter and ask HR in writing rather than assuming.
The amount you pay is generally not deductible from your taxable income. If a new employer reimburses it, that reimbursement is normally treated as a perquisite and taxed as part of your salary. Confirm the treatment with a tax adviser before relying on it.
Yes, provided you have completed five years of continuous service. Gratuity is a statutory entitlement and cannot be withheld to force you to serve notice. The same applies to your provident fund balance.
Frequently, for senior or hard-to-fill roles. It is treated as a joining cost and is worth asking for explicitly during the offer conversation rather than after you have accepted.
Your balance stays yours. If you withdraw it before five years of continuous service the withdrawal is taxable, so transferring it to your new employer using Form 13 usually makes more sense and preserves continuity for gratuity.
For candidates
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