# Notice Period & Full-and-Final Calculator > Estimate your notice-period buyout and the full-and-final settlement: pending salary, leave encashment, gratuity, net of recoveries. Runs in your browser. Source: https://www.revquix.com/tools/notice-period-calculator Cost: free, no signup --- What you are owed, or what you owe, when you resign. Notice shortfall, leave encashment and the settlement, with the FY 2026-27 rule on when final wages are due - computed in your browser. ## At a glance - Takes: Your notice clause, days you will serve, and monthly salary - Returns: Last working day, buyout cost, and the full-and-final position - Basis: Your contract - notice recovery has no statutory rate in India - Privacy: Runs in your browser - no figure is sent anywhere ## This is contract arithmetic, not tax law There is no statutory notice period for private employment in India. There is no statutory rule about whether a buyout is computed on basic or on gross, and no statutory per-day divisor. All of it comes from your employment contract, which is why this page asks you for the days and the rate rather than telling you what they are. The convention we apply, and state, is a thirty-day month for the per-day rate. If your contract says otherwise the arithmetic is the same with a different divisor. Read the clause - the difference between a basic-based and a gross-based recovery is often two to one, and it is the single largest variable in the number. ## What goes into a full-and-final settlement The settlement is a sum of what you are owed less what is recovered. Pending salary for days worked but unpaid, encashment of accrued earned leave, and gratuity if you have qualified, against the notice shortfall recovery and anything else outstanding - unreturned equipment, a salary advance, a training bond. - Notice shortfall recovery, on basic or gross as your contract specifies - Pending salary for unpaid worked days, computed on gross - Earned leave encashment, computed on basic - Gratuity, after five years of continuous service, or 1 year on a fixed-term contract - Other recoveries - assets, advances, bonds ## The net can be negative, and that is the useful case A short notice period with little accrued leave produces a settlement the employee owes rather than receives. We compute that and label it, because it is the most important thing this page can tell someone who has not yet resigned, and it is far better known in advance than discovered in a settlement letter. Two statutory points apply. The first is the leave-encashment exemption ceiling for non-government employees - section 10(10AA) of the 1961 Act, section 19 of the Income-tax Act, 2025. It was raised substantially in 2023, so a calculator carrying the old figure understates the exemption. The second is timing: since 21 November 2025, final wages are due within 2 working days of your exit, under the Code on Wages, 2019, section 17(2). ## What it will not do It will not give a legal opinion. Whether a notice clause is enforceable, whether a buyout can be negotiated down, and whether a bond is valid are contested questions that depend on your contract and the facts - and none of them is arithmetic. It also does not compute tax on the settlement beyond flagging the leave-encashment exemption, does not generate a settlement letter, and cannot chase an employer who pays late. ## Questions people ask ### Is a notice buyout computed on basic or on gross? Whichever your contract says - there is no statutory default. Gross-based recovery is common and is roughly twice as expensive as basic-based for a typical structure, so it is worth reading the exact wording before you negotiate a shorter notice period. This page lets you model both. ### Is leave encashment taxable? For a non-government employee, encashment on retirement or resignation is exempt up to the statutory ceiling - section 10(10AA) of the 1961 Act, now section 19 of the Income-tax Act, 2025 - and taxable above it. Encashment while still employed is fully taxable. The ₹25,00,000 ceiling is carried forward from the 1961-Act notification; no fresh notification under the 2025 Act has been found. ### Can my new employer pay my buyout? Many do, and it is a normal thing to ask for during negotiation - often framed as a joining bonus sized to the recovery. It is a commercial arrangement between you and the new employer, not something your current employer is involved in, and it usually carries a clawback if you leave within a year. ### When must a full-and-final settlement be paid? Your wages must be paid within 2 working days of your last day. Section 17(2) of the Code on Wages, 2019, in force since 21 November 2025, applies that to an employee who resigns or is removed, dismissed or retrenched. Many company policies still quote thirty to forty-five days, which predates the Code - if yours is late, raise it with HR in writing. ### Is gratuity part of the full-and-final settlement? Yes, where you have completed the qualifying service. It is usually paid as part of the settlement rather than separately. Compute it with the gratuity calculator and enter the figure here, or use the amount HR has told you if you have it.