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All-in-one HR platform · v2.0
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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
Work out the amount recovered from an employee who leaves before serving notice, or paid by an employer who releases someone early.
When notice is cut short, someone owes the other side for the days not served. If the employee leaves early, the employer usually recovers notice pay in the final settlement. If the employer ends employment without full notice, it pays salary in lieu of the unserved days.
This notice period recovery calculator uses the wage and day basis your employment contract specifies, and works in both directions.
Enter your figures, then press Calculate
Your 5 inputs become a full breakdown, with every step of the working shown beneath the headline figures.
Notice pay is the unserved part of the notice period, priced at a daily rate. The contract decides the wage and the day count; the calculator only does the arithmetic consistently.
Notice pay = (Monthly wage ÷ Divisor) × (Notice days required − Notice days served)
Required notice less the days actually served. If the full period was served, nothing is due either way.
Divide the wage the contract names by 30, or by 26 where the contract prices notice on working days.
The result is recovered from the employee's final settlement where they left early, or paid to them where the employer released them early.
What this does not include
Asked often enough about this calculation to be worth answering beside it.
Whatever the employment contract names. Many contracts specify gross monthly salary; some specify basic. If the contract is silent, the policy that has been applied consistently in the past is the practical reference, and an adviser should confirm it.
Some policies allow earned leave to be set off against unserved notice, which reduces the shortfall. Others do not. Enter served days after any adjustment your policy permits.
Where the contract or applicable law requires notice and the employer does not give it in full, salary in lieu of the unserved days is the usual remedy. For workmen under the Industrial Disputes Act, retrenchment carries additional conditions.
This has been a disputed point with differing rulings. Take current tax advice before deciding how to treat it; the calculator computes only the amount.
As a deduction in the full and final settlement, set against salary for days worked, leave encashment and any other dues.
A calculator applies a rule to figures you type in. A payroll run applies it to your actual employee record, your locations and your verified declarations, which is where Professional Tax, LWF and TDS also resolve.
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