Question 1

Is notice period buyout calculated on CTC or gross?

Accepted Answer

Usually on monthly CTC ÷ 26 working days = daily rate × remaining notice days. Some companies use gross salary — check your appointment letter.

Question 2

Can my new employer pay my notice period buyout?

Accepted Answer

Yes! Many companies offer joining bonuses specifically to cover notice buyout costs. Negotiate this during offer negotiation.

Question 3

Can my employer force me to serve the notice period?

Accepted Answer

Yes, if both parties agreed to the notice period in the employment contract. However, you can pay the buyout to leave early — it's your right.

Question 4

Is notice period buyout taxable?

Accepted Answer

Yes. The buyout amount is added to your income for that financial year and taxed according to your income tax slab. Factor in ~30–35% effective cost.

Question 5

How many working days is one month notice?

Accepted Answer

Standard Indian convention is 26 working days per month (excluding Sundays). Saturdays may or may not be counted depending on your company policy.

Notice Period Buyout Calculator

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