Find your last working day and notice period buyout cost - with weekend and holiday options.
A notice period is the duration an employee must serve - or pay in lieu of - after submitting their resignation, before the employment relationship formally ends. In India, notice period terms are governed by individual employment contracts, company HR policies, and in some industries by sector-specific regulations. The Industrial Employment (Standing Orders) Act 1946 prescribes minimum notice periods for workers in industrial establishments, while the Shops and Establishments Acts of each state set standards for commercial employees. Typical notice periods in Indian IT and services companies range from 30 days for junior roles to 90 days for senior positions.
Many companies allow employees to "buy out" their notice period by paying the equivalent salary in lieu of serving the full period - particularly useful when a new employer wants an immediate or early join. The buy-out amount is calculated as: (gross monthly CTC / number of working days in the month) multiplied by the number of notice days remaining. This calculator computes both the last working day and the buy-out cost in rupees based on your salary and remaining notice days, accounting for weekends and public holidays that may or may not count depending on company policy.
Notice pay received by an employee from a former employer is fully taxable as salary income under the Income Tax Act - it should be reported in the ITR for the year of receipt. Conversely, if an employee pays a notice period penalty to the company, this amount is not deductible from income. EPFO guidelines require that PF contributions continue to be made during the notice period if the employee is serving it, and the final PF settlement can only begin after the date of leaving recorded by the employer.