Short answer
A practical estimate for notice period buyout is monthly salary divided by 30, multiplied by the number of unserved notice days.
The exact basis can vary. Some companies use basic salary, some use gross salary, and some use fixed monthly pay defined in the offer letter.
Example
If your monthly salary basis is Rs 80,000, required notice is 90 days, and you served 45 days, the shortfall is 45 days.
Estimated buyout = 80,000 / 30 x 45 = Rs 1,20,000.
What to verify
Check whether the company uses basic salary, gross salary, fixed pay, or CTC component for recovery.
Also check whether leave adjustment, earned salary, bonuses, and deductions are handled separately in full and final settlement.
FAQs
Can a company recover notice period salary?
Many employment agreements include notice recovery clauses. The enforceability and exact process depend on the contract and local legal context.
Is notice period buyout always mandatory?
No. Companies may waive, reduce, negotiate, or enforce notice recovery depending on policy, manager approval, and business needs.