Notice Period Recovery Calculator

A notice period recovery calculator works out the amount an employer can recover when you serve less notice than your contract requires: monthly gross salary ÷ 30 per day, multiplied by the shortfall days.

Notice period recovery — also called "notice pay recovery" or "buyout amount" — is the salary a company deducts from your final settlement equal to the shortfall between the notice period your contract requires and the days you actually served. Most Indian employment contracts specify a notice period, commonly 30, 60 or 90 days, that either party must give before ending employment; leaving earlier, with or without your employer's approval depending on the contract, triggers this recovery.

The calculation is straightforward: your monthly salary divided by 30 gives a per-day rate, multiplied by the shortfall in days — the gap between what your contract requires and what you actually served. If you served the full required notice, there's no shortfall and no recovery; the calculator correctly shows zero rather than an error in that case.

This is exactly the mirror image of the leave encashment calculation, just working in the opposite direction — money the company owes you for unused leave versus money you owe the company for unserved notice. Whether an employer can actually enforce recovery, and how it's structured (deducted from final salary vs. a separate demand), depends on your specific contract terms; some employers waive the recovery for a smooth transition or accept a shorter notice by mutual agreement.