Question 1

How is notice period buyout calculated?

Accepted Answer

It is generally calculated as per-day gross salary multiplied by unserved notice days, using either a 30-day or 26-day divisor as per company policy.

Question 2

Is notice buyout reimbursement taxable in India?

Accepted Answer

Reimbursement from a new employer can be taxable depending on payroll structure and documentation. Confirm with payroll or a tax advisor.

Question 3

Should buyout use basic salary or gross salary?

Accepted Answer

Many companies use gross salary, but the exact base depends on appointment letter, HR policy, and full-and-final settlement rules.

Question 4

Can shortfall days differ from notice period minus served days?

Accepted Answer

Yes. HR may waive days, adjust leave balance, or negotiate a different shortfall, so the calculator allows manual shortfall entry.