A notice period buyout is commonly worked out as your monthly basic salary divided by 30, multiplied by the notice days you won't serve. On a 90-day notice where you serve 30 days and earn ₹40,000 basic a month, that is 60 days × ₹1,333, or about ₹80,000. The calculator below does it for your numbers. Before you quote the figure to anyone, check the clause in your appointment letter: it may use gross pay, a 26-day month, or not allow a buyout at all.
Notice period buyout calculator
Uses the common rule of basic salary divided by 30, times the unserved days. Your offer letter or HR policy decides the real rule (some use gross pay, some refuse leave adjustment).
Basic, gross or a 26-day month: how the rule changes the bill
Two words in your notice clause decide most of the cost: which salary, and which divisor. Here is the same 60 unserved days for someone earning ₹80,000 gross a month, of which ₹40,000 is basic.
| Rule in your letter | Per day | 60 unserved days |
|---|---|---|
| Basic ÷ 30 days | ₹1,333 | ₹80,000 |
| Basic ÷ 26 days | ₹1,538 | ₹92,308 |
| Gross ÷ 30 days | ₹2,667 | ₹1,60,000 |
| Gross ÷ 26 days | ₹3,077 | ₹1,84,615 |
Arithmetic only. Example salary: ₹80,000 gross a month with ₹40,000 basic.
Source: Worked example, HiddenRoles
The same exit costs anywhere from ₹80,000 to about ₹1.85 lakh. To use the calculator with a different rule, type your monthly gross (or monthly CTC, if the letter says CTC) into the basic salary box. For a 26-day divisor, multiply the result by 1.15.
One more reason to read the latest version of your letter: since India's four labour codes took effect in November 2025, the standardised definition of wages has prompted many employers to restructure pay, according to Aon's India salary survey. If your basic went up in a restructuring, a basic-linked buyout goes up with it.
Plan your last working day
Your last working day is the resignation date plus the days you actually serve. Count from the resignation date HR records, and ask them to confirm the last working day in writing. Leave adjustment is easy to assume and then lose: earned leave and notice are separate things, so 30 days of leave does not automatically turn a 90-day notice into 60. Ask first.
Typical notice periods in India, and where yours comes from
Indian employers commonly use 30, 60 or 90 days, especially for managerial, technical, client-facing and senior roles, according to this explainer by Adv. Govind Bali of Fastrack Legal Solutions (August 2026). The same explainer is clear that no single national rule fixes how long a private-sector employee must serve on resignation. Your notice comes from, in rough order: the appointment letter or contract, any standing orders that apply, your state's shops and establishments law, and your category of employment.
According to the same explainer, the labour codes that took effect on 21 November 2025 did not create a universal resignation notice, but they did add one rule worth knowing: under Section 17(2) of the Code on Wages, 2019, the wages payable when you resign must ordinarily be paid within two working days. The explainer reads that as covering earned wages, not every part of your full and final settlement; gratuity, bonus and leave encashment follow their own timelines.
How to negotiate an early release
An early release is something you agree, not something you demand. Your manager cares about the handover; HR cares about the policy and the paperwork. Give both what they need and the number of days you have to buy out often shrinks. If a recruiter tells you the role needs someone who can join in 30 days, ask whether they will cover the buyout before you assume you have to pay it yourself. Asking is reasonable, and it belongs in the same conversation as your salary hike and joining bonus, which our salary negotiation scripts cover.
Before you hand in your resignation
- Read the notice clause: number of days, whether buyout is your option or theirs, and which salary it uses.
- Check your earned leave balance and whether policy lets you adjust it against notice.
- Get the new offer letter first, with the joining date and any buyout reimbursement written in.
- Draft a handover note: open work, contacts, passwords to transfer, who takes over what.
- Download your last few payslips and your appointment letter while you still have system access.
- Ask HR to confirm the resignation date and last working day by email.
Subject: Resignation, [Your name], [Employee ID] Dear [Manager], Please accept this email as my resignation from the role of [designation], effective today, [date]. As per my appointment letter, my notice period is [90] days. I have an offer that needs me to join by [date], so I'd like to request an early release with my last working day on [date]. I will complete a full handover before then, including [key items], and I'm happy to [train X / document Y]. If a full early release isn't possible, I'm open to buying out the remaining days as per policy, or adjusting my leave balance of [N] days if the policy allows. Thank you for the last [N] years. I've learnt a lot on this team and want to leave things in good shape. Regards, [Your name]
Hi [recruiter], A quick update on my joining date. My current notice period is [90] days. I've asked for an early release, and my employer will allow a buyout of the remaining [60] days, which comes to about [₹amount] as per my appointment letter. To join by [date], could [company] reimburse this, either as a joining bonus or a buyout reimbursement written into the offer letter? I'm happy to share the calculation. Regards, [Your name]
Relieving letter, F&F and leaving without notice
Your next employer will usually ask for a relieving letter during background checks, which is why people pay buyouts they could argue about. Leaving without serving notice or paying for it can give your employer a contractual claim for notice pay, and it can hold up paperwork you need. Even so, the same legal explainer says HR should not use relieving documents as an informal penalty: if there is a notice-pay claim, it should be stated and settled openly. The explainer also says that workers covered by the Model Standing Orders notified in May 2026 are entitled to a service certificate within ten days of resignation.
Practical route: agree the buyout amount in writing, let HR adjust it against your full and final settlement, and ask for the relieving letter in the same email thread. If you are moving to a company that values a quick start, our guide to the hidden job market in India covers where those roles are posted.
Subject: Relieving letter and F&F, [Your name], [Employee ID] Dear [HR name], My last working day was [date]. I have completed the handover and returned [laptop / ID card / access card]. Could you please share my relieving letter and experience letter, and confirm the date for my full and final settlement? As agreed on [date], the notice buyout of [₹amount] for [N] days can be adjusted against my F&F. Regards, [Your name] [Phone]
Notice period terms, explained
- Notice period
- The time between resigning and your last working day, set by your appointment letter or the rules that apply to your job. Example: "60 days' notice" means a resignation on 1 March ends around 30 April.
- Notice period buyout
- Paying for the notice days you don't serve, usually by deduction from your final settlement. Also called notice pay recovery or pay in lieu of notice.
- Early release
- Your employer agreeing to a last working day before the notice ends, with or without a buyout. Always get the new date in writing.
- Full and final settlement (F&F)
- The last calculation of what you are owed and what you owe: salary to the last day, leave encashment, bonus, minus any buyout or recoveries.
- Relieving letter
- A letter confirming you have been released from your duties and completed the exit. New employers often ask for it during background verification.
- Immediate joiner
- Recruiter shorthand for someone who can start within days, usually because they are not employed or have already served notice. If a posting asks for one, ask whether they will cover a buyout.
Questions people ask
Can my employer refuse a notice period buyout?
Yes, if your letter does not give you an unconditional right to pay instead of serving. In that case a buyout is something you negotiate. If the letter does give you that option, point to the clause in your resignation email.
Can I adjust earned leave against my notice period?
Only if your company policy or contract allows it. Leave and notice are separate, and some employers would rather encash your leave in the F&F than shorten the notice. Ask HR before you count on it.
Will my new employer pay my notice buyout?
Some do, especially when they need you sooner than your notice allows, but it is never automatic. Ask before you resign, and get it written into the offer letter as a joining bonus or a buyout reimbursement.
What if my letter says the buyout is on CTC?
That is the most expensive basis, because CTC includes PF, gratuity and other costs you never receive as cash. Enter your monthly CTC (yearly CTC divided by 12) in the calculator, then ask HR whether they will accept gross or basic instead.
Is the notice period counted in calendar days or working days?
It depends on the wording of your letter and the HR policy behind it. Working days push the last day out by weeks on a long notice, so if the letter is unclear, ask HR to confirm your last working day in writing.