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Notice Pay Calculator

Notice period shortfall recovery estimate

Free No signup Indian rules
What this calculator does

Estimate the notice pay recoverable (or payable) when an employee serves less than the required notice period.

Notice period buyout

Daily rate divisor
Your employment contract or company policy determines which convention applies

Good to know

  • The shortfall between required and served notice is typically recovered from the employee (or paid by the employer, if they waive the notice).
  • Daily rate is commonly calculated as gross monthly salary ÷ 30 (calendar days) or ÷ 26 (working days), depending on the employment contract.
  • This figure is usually adjusted in the Full & Final (FnF) settlement, either as a deduction or a payout.
  • Exact notice buyout terms are governed by the employment contract and applicable Shops & Establishments Act.

Results

Notice pay recoverable

₹60,000

Shortfall days30 days
Daily salary rate₹2,000

Estimate only. Exact notice pay/recovery terms depend on your employment contract and the applicable state Shops & Establishments Act — confirm with HR before finalizing an FnF settlement.

How it works

How this calculator works

The shortfall between required and served notice days is multiplied by the daily salary rate (gross monthly salary ÷ 30) to estimate the recoverable or payable amount, usually adjusted in the FnF settlement.

Notice Pay Calculator formula

Notice pay recovery = (Monthly salary ÷ 30) × Notice days not served

Worked example

Arjun earns ₹60,000 a month. His notice period is 60 days but he serves only 40.

  1. Shortfall = 60 − 40 = 20 days
  2. Daily rate = ₹60,000 ÷ 30 = ₹2,000
  3. Notice pay recovery = ₹2,000 × 20 = ₹40,000

₹40,000 is recovered from Arjun's full and final settlement, unless the employer waives it.

Questions

Notice Pay Calculator: FAQs

Typically yes, unless the employer chooses to waive the shortfall or the contract states otherwise.

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