Free tool for candidates
What will it cost to buy out your notice period?
If a new employer wants you sooner than your notice period allows, someone usually pays for the unserved days — you, your new employer, or a split between both. Enter your notice terms and salary below to estimate that number before you negotiate it.
Adjust the assumptions below.
≈ 2.00× the selected monthly salary — ₹1,60,000 in total, for 60 unserved day(s).
- Salary-based buyout
- ₹1,60,000
Unserved notice days × the per-day rate derived from the selected monthly salary and divisor.
This is an informational estimate, not legal advice — the actual amount depends on your contract and employer policy, and any buyout may be taxable. See methodology, assumptions & disclaimer below.
How it works
How does a notice-period buyout actually work in India?
Basic salary or Gross salary — which one applies?
Contracts differ. Some notice-buyout clauses reference Basic pay only; others use full Gross monthly pay. There's no single rule across Indian employers — check your own offer letter or appointment terms, and use whichever this calculator's "Buyout base" matches.
What counts as "unserved" notice?
The days left between your last working day and the end of your full contractual notice period. If you've already worked part of your notice, only the remaining days are typically bought out — not the whole period from scratch.
Is buying out a notice period legal in India?
Generally yes, where the employment contract or applicable state Shops & Establishments rules allow either side to end notice early by paying (or accepting) a sum in lieu of the unserved days. It's a contractual mechanism, not a workaround — but the specific terms still come from your own agreement.
Can an employer withhold my documents instead?
A legitimate buyout amount can usually be deducted from your final settlement — but withholding your relieving letter, experience certificate, or original documents indefinitely as leverage is a different, generally indefensible practice, not a normal part of a notice buyout.
Methodology & disclaimer
How accurate is this estimate?
This calculator applies one plain-language formula — unserved notice days × a per-day salary rate, plus an optional bond figure — nothing hidden, no secret multiplier. Every default below is an editable assumption, not a legal rule or a universal industry standard. Real notice-buyout terms come from your own employment contract and your employer's policy, and can vary by state-level Shops & Establishments rules too.
Days-in-a-month divisor
Defaulted to 30 calendar days. Some contracts instead divide by a working-days count (commonly around 26) — pick whichever your own contract's pay-in-lieu clause actually uses; it changes the per-day rate materially.
Basic vs. Gross salary
Defaulted to Gross, since that's the more common contractual base, but this varies by employer. There's no universal rule here — this is precisely why both figures are separate, editable inputs rather than one silent default.
Notice period, in days or months
A months-denominated notice period is converted at 30 days per month for this estimate. Enter the period directly in days instead if your contract specifies an exact day count.
Bond / service-agreement amount
Has no default — it's 0 unless you enter one, because only your own contract states whether a fixed bond figure exists and whether it replaces or adds to the salary-based buyout.
Disclaimer
This tool is informational only and is not legal or tax advice. The actual amount you owe or are owed depends on your specific employment contract and your employer's policy, and a notice-period buyout may be taxable. For your exact situation, check your contract and consult your employer's HR team, a lawyer, or a tax advisor.
FAQ