KnowMyContract

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Notice Period & Salary Buyout Calculator

Work out your exact last working day, the buyout your employer can claim for unserved notice, and what should actually land in your final settlement. Slide the numbers and the result updates in real time.

Your numbers

Medium risk
Real-time estimate
Buyout you owe: ₹1,73,333

Your last working day is 9 Oct 2026 (full notice would end 8 Dec 2026). 60 unserved days × ₹3,333 daily base pay = ₹2,00,000, reduced by ₹26,667 of leave adjustment.

Last working day
9 Oct 2026
Full-notice end date
8 Dec 2026
Daily base pay (salary ÷ 30)
₹3,333
Unserved notice days
60
Gross buyout before leave
₹2,00,000
Leave adjusted against notice
−₹26,667
Net buyout payable by you
₹1,73,333
Estimated final settlement to you
−₹73,333
Approx. after-tax cost to you (estimate, not tax advice)
₹1,90,667 – ₹2,08,000

What to do: Meaningful exposure. Negotiate a shorter effective notice, apply pending leave against it, and get the buyout basis (basic vs CTC) confirmed in writing.

Copy this message to HR
Hi [HR name],

Following my resignation dated 2026-09-09, I'd like to confirm my exit numbers in writing.

• Notice required: 90 days; notice I will serve: 30 days (last working day 9 Oct 2026).
• Unserved notice: 60 days.
• I have 8 day(s) of unused paid leave and request that it be adjusted against the unserved notice period.
• On a basic-pay basis (₹3,333 per day), that leaves a buyout of ₹1,73,333.

Could you please confirm that the buyout is calculated on basic pay (not CTC), and share an itemised final settlement statement?

Thank you,
[Your name]

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Frequently asked questions

How is my last working day calculated?
It is your resignation date plus the number of notice days you actually serve. If you serve the full contractual notice, your last working day equals resignation date plus the required notice period. Anything short of that creates a shortfall your employer may recover as a buyout.
Should buyout be calculated on basic or CTC?
Basic pay. CTC includes variable pay, provident fund, and benefits you never received — using it inflates the buyout unfairly. Fair contracts cap buyout at basic × unserved days ÷ 30.
Can unused leave offset the notice period?
In most Indian employment contracts, yes — either the leave is adjusted against the notice period or it is encashed in the final settlement. It is rarely automatic, so ask for it in writing before your last working day.
Is the buyout taxable?
If your employer pays it on your behalf, it is treated as salary income and taxed in your hands. If you pay it out of pocket, it is NOT deductible from your salary income under current Indian tax law. The after-tax estimate above illustrates the real cost. This is not tax advice — confirm with a CA.
Is a 90-day notice period legal?
Yes, but it should be symmetric. A 90-day notice from you paired with a 30-day notice from the employer is a common trap that most HR teams will renegotiate when asked.

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