Hi,
Please help me with how to calculate the notice period when an employee is not serving the notice period. Is it deducted based on the gross salary or net salary? Also, how should the notice period be calculated?
I would appreciate guidance from seniors.
Regards,
Vidya
From India, Pune
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1Please help me with how to calculate the notice period when an employee is not serving the notice period. Is it deducted based on the gross salary or net salary? Also, how should the notice period be calculated?
I would appreciate guidance from seniors.
Regards,
Vidya
From India, Pune
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Dear Vidya,
Notice pay is to be deducted from the gross salary. The notice period calculation depends on your company policy, i.e., 15 days, one month, two months, or three months to be deducted if the person does not serve the notice period.
Regards,
Harshad
From India, Mumbai
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Notice pay is to be deducted from the gross salary. The notice period calculation depends on your company policy, i.e., 15 days, one month, two months, or three months to be deducted if the person does not serve the notice period.
Regards,
Harshad
From India, Mumbai
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Vidya,
We consider basic pay for all statutory deductions, so the same is applicable for the notice period as well. However, there are no set rules defined. Some companies even prefer deducting it from the gross pay - both are valid. It is entirely up to how you define your policy. In the case of termination, if you pay only the basic component, then the same is applicable for the employee as well when they are not serving their notice period.
From India, New Delhi
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We consider basic pay for all statutory deductions, so the same is applicable for the notice period as well. However, there are no set rules defined. Some companies even prefer deducting it from the gross pay - both are valid. It is entirely up to how you define your policy. In the case of termination, if you pay only the basic component, then the same is applicable for the employee as well when they are not serving their notice period.
From India, New Delhi
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Notice period is calculated on basic salary only from the day of serving notice of termination period. No gross salary deduction applicable.
I recommend requesting Mr. Madhu. He will give you expert advice.
Regards,
Badlu
From Saudi Arabia
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I recommend requesting Mr. Madhu. He will give you expert advice.
Regards,
Badlu
From Saudi Arabia
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Hi Vidya,
In your HR policy, you will have well-defined terms and conditions for the notice period. In your case, if the employee wants to pay the notice period, it means he has to pay the gross salary only. If the employer wants to pay the notice period in the case of termination, they will be paying only the basic and DA.
Warmest Regards,
Mohan.M.S
"Willingness to walk the extra mile to achieve excellence"
From India, Madras
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In your HR policy, you will have well-defined terms and conditions for the notice period. In your case, if the employee wants to pay the notice period, it means he has to pay the gross salary only. If the employer wants to pay the notice period in the case of termination, they will be paying only the basic and DA.
Warmest Regards,
Mohan.M.S
"Willingness to walk the extra mile to achieve excellence"
From India, Madras
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Dear Ms.Vidhya, Atually notice period will be calculated only on BASIC+DA, not on the gross salary... Basic+DA/31*No. of days short fall.. okay clear....
From India, Madras
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From India, Madras
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Dear Vidya,
There is a notice period in all organizations, i.e., 30 days' notice or 90 days' notice period, and we have to check the date of resignation. From that day onwards, the notice period is counted. For example, if a person gives only a 20-day notice period, then you have to calculate the remaining 10 days from the monthly salary. That means you have to withhold the 30 days' salary. The calculation is the monthly salary divided by 30 days or 31 days. Once you get the per-day salary, then multiply it by the short notice.
Biju
From India, Bangalore
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There is a notice period in all organizations, i.e., 30 days' notice or 90 days' notice period, and we have to check the date of resignation. From that day onwards, the notice period is counted. For example, if a person gives only a 20-day notice period, then you have to calculate the remaining 10 days from the monthly salary. That means you have to withhold the 30 days' salary. The calculation is the monthly salary divided by 30 days or 31 days. Once you get the per-day salary, then multiply it by the short notice.
Biju
From India, Bangalore
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Even I do agree with what Biju has said, as our organization follows the same procedure to calculate the amount for the notice period. If the employee has served the complete notice period, then there is no need for any deductions; even the PF would be paid in the respective manner as it was earlier. In case the employee doesn't serve the complete notice period, then the one month's salary would be divided by 30 days and multiplied by the number of days to be recovered.
Thanks, Take care, Bye
From India, Delhi
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Thanks, Take care, Bye
From India, Delhi
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Dear Sowmya, Notice pay is your basic salary or (Basic+DA). In some companies however it is calculated on Basic+HRA. No other allowances as far as I know are considered for notice pay calculation.
From India, Mumbai
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From India, Mumbai
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It is right that only the Basic Salary is applicable for the notice period. No allowances are taken into consideration, even if the company desires to pay notice pay; they will also pay only Basic pay.
Badlu
From Saudi Arabia
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[Jancy13](http://citehr.com) ( [link updated to site home](citehr.com))
It is right that only the Basic Salary is applicable for the notice period. No allowances are taken into consideration, even if the company desires to pay notice pay; they will also pay only Basic pay.
Badlu
From Saudi Arabia
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Dear all,
Greetings of the day!!
Recently, I have resigned from my previous job under the Ministry of Textiles. As per the institute's Service Rule, I had to tender a service of 3 months in case of resignation, but due to some reason, it fell short by 1 and 15 days. As I understood from the policy, I had to deposit salary in lieu of this short notice period. So, I accepted the condition.
Now, the Institute has served me a notice to deposit salary including Basic Salary + Dearness Allowance + House Rent Allowance + Traveling Allowance with DA which amounts to Rs. 35,398. As far as I know, as per the law, I am bound to deposit the sum including Basic Salary + Dearness Allowance + Other Allowances as HRA and TA are not treated as salary components (basically, HRA is for accommodation, but when resigned, the company is not concerned about where I will live or any other related matters, and the same applies to Traveling Allowance). Therefore, as per my calculation, it comes to Rs. 31,448.
I suppose I have acquainted you with my problem in brief. Hence, I would anticipate any expert to guide me on what the justified calculation is; if possible, could you please furnish me with the rule for the short notice period.
Thank you for your expert insights.
Ashok K Gupta
From India, Varanasi
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Greetings of the day!!
Recently, I have resigned from my previous job under the Ministry of Textiles. As per the institute's Service Rule, I had to tender a service of 3 months in case of resignation, but due to some reason, it fell short by 1 and 15 days. As I understood from the policy, I had to deposit salary in lieu of this short notice period. So, I accepted the condition.
Now, the Institute has served me a notice to deposit salary including Basic Salary + Dearness Allowance + House Rent Allowance + Traveling Allowance with DA which amounts to Rs. 35,398. As far as I know, as per the law, I am bound to deposit the sum including Basic Salary + Dearness Allowance + Other Allowances as HRA and TA are not treated as salary components (basically, HRA is for accommodation, but when resigned, the company is not concerned about where I will live or any other related matters, and the same applies to Traveling Allowance). Therefore, as per my calculation, it comes to Rs. 31,448.
I suppose I have acquainted you with my problem in brief. Hence, I would anticipate any expert to guide me on what the justified calculation is; if possible, could you please furnish me with the rule for the short notice period.
Thank you for your expert insights.
Ashok K Gupta
From India, Varanasi
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Withdrawl of Resignation and Notice period.doc
Resignation-Not ice Period- T._Purushotham_ Reddy_vs_United _India_Insuranc e_Company_..._o n_21_Nove.pdf