Notice Period Recovery / Buyout Calculator
What leaving early costs — shortfall days × per-day salary, GST confusion and the new-employer buyout route.
Formula
Disclaimer: Indicative math using recently applicable rates and rules — verify current-year figures. Not financial or tax advice.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need notice period recovery / buyout calculator results fast? Skip the spreadsheet and get a clear, defensible answer in one step — free, private and instant, recalculating live as you change any input.
About Notice Period Recovery / Buyout Calculator
Notice-period recovery is a contract term, not a law of nature: the appointment letter defines the period (30/60/90 days), the salary basis (BASIC-only versus gross — the single biggest disputed variable; basic-only typically halves the bill) and the divisor. The defaults — 60 days short on ₹80,000/month — show ₹1.6 lakh of recovery, usually netted against final settlement (last salary + leave encashment). The buyout ecosystem matters more than the math: most hiring companies REIMBURSE notice buyouts for in-demand candidates (negotiate it INTO the offer explicitly — 'notice-period buyout as per old employer's policy' — and route receipts properly, since reimbursed buyout is typically taxable salary from the new employer), and many old employers allow leave-adjustment against shortfall days, shrinking the recoverable amount leave-day-for-day. Two fights worth knowing: TAX — recovered amounts are deducted from your settlement, and whether tax applies on gross-before-recovery or net has been litigated (CESTAT/AAR positions favor employees on GST: notice recovery is NOT a taxable 'service' per prevailing rulings, so an employer adding 18% GST to recovery deserves pushback); and RELIEVING-LETTER leverage — recovery disputes commonly end with employers withholding documents; settle the math before your last week, in writing, because background-verification timelines are worth more than a partial recovery victory.
How to use Notice Period Recovery / Buyout Calculator
- 1Enter Monthly salary (per contract — basic or gross), Contractual notice period (days), Days you will actually serve (days), Per-day basis into the Notice Period Recovery / Buyout Calculator.
- 2The result is computed automatically using Recovery = (notice days − days served) × (salary ÷ divisor) — whether 'salary' means basic or gross is decided by YOUR appointment letter — there is no button to press; it updates live as you type.
- 3Change any input to model a different scenario, then use “Copy result link” to share the exact numbers.
Why use Notice Period Recovery / Buyout Calculator?
- ✓Computes notice period recovery / buyout calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter are never uploaded or stored
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
Recovery basic par hota hai ya gross par?+
Jo appointment letter me likha hai: 'one month's salary in lieu of notice' me 'salary' ki definition contract ki definitions-clause me dekho. Likha 'basic' hai to basic; ambiguous hai to companies gross maangti hain par negotiate ho jata hai. Yeh ek line ₹50-80,000 ka farak ban sakti hai 90-din ke buyout me — HR ke pehle figure ko final mat maano.
Naya employer buyout reimburse karega to tax kaise lagega?+
Reimbursement aapki taxable salary me judta hai (perquisite/salary head me) — yaani ₹1.6L ka buyout reimburse hua to us par aapke slab ka tax bhi katega. Negotiate karte waqt 'grossed-up reimbursement' maangiye taaki net-of-tax pura cover ho. Purane employer ki recovery ka aapko koi deduction nahi milta — yeh asymmetry hi asli cost hai.
Kya company notice recovery par GST laga sakti hai?+
Prevailing judicial/AAR position: NAHI — notice-pay recovery 'tolerating an act' wali taxable service nahi maani gayi hai (employment-contract ka hissa hai). Kai companies ab GST nahi lagati; koi lagaye to written pushback kijiye in rulings ka hawala de kar. Settlement-sheet me 18% extra line dikhna red flag hai.
Leave balance se notice period adjust ho sakta hai?+
Policy-dependent par bahut common: bacha hua earned leave shortfall-days me adjust ho jata hai (45 din leave + 45 din served = 90-din notice pura). Kuch companies sirf partial adjustment ya sirf approval-basis par deti hain. Resignation se PEHLE policy padh kar leave-planning kar lena buyout ko zero tak la sakta hai — sabse sasta exit yahi hai.
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