Notice period buyout calculator
Most Indian employers let you leave early if you pay for the notice days you do not serve. Enter your pay, notice period and the days you will work to see the buyout, and the grossed up amount a new employer has to reimburse so you are not out of pocket after tax.
Your notice
Buyout is charged on
The figure your appointment letter names for notice pay
From resignation to your last working day
Only if your employer allows leave against notice
Daily rate
20 LPA; sets the slab a reimbursement is taxed at
Notice buyout to pay
₹1,00,000
60 unserved days at ₹1,667 a day, on basic pay ÷ 30.
- Days to buy out
- 60
- Daily rate
- ₹1,667
- Ask new employer for
- ₹1,26,262
- Tax on reimbursement
- ₹26,262
If your new employer reimburses it
| Buyout you pay your current employer | ₹1,00,000 |
| Income tax on the reimbursement, at your new slab | − ₹26,262 |
| Reimbursement that leaves you whole | ₹1,26,262 |
A reimbursement is salary in the new job and is taxed like it, so a cheque equal to the buyout leaves you short by the tax. Ask for the grossed up figure in writing, as a joining bonus or a buyout reimbursement, before you resign.
Questions
Your appointment letter decides. Many companies use basic salary, others use gross or fixed monthly pay. The daily rate is usually monthly pay divided by 30, sometimes by 26 working days. Pick the basis your contract names.
Some employers set unused earned leave off against the notice period; others pay it out in the full and final settlement and refuse the set off. If yours allows it, enter the days and they come off the buyout.
Yes. A reimbursement from the new employer is part of your salary and is taxed at your slab, so a reimbursement equal to the buyout leaves you short. Ask for the grossed up amount this calculator shows.