Notice Period Recovery: Should It Be Based on Basic Pay or Gross Pay?

Well, I couldn't serve my full month's notice period and only served for 18 days. In the Full and Final settlement, they recovered 12 days' salary based on the gross salary for the month. My question is whether the notice period recovery is made on the Basic pay or Gross pay.

Normally, the notice period recovery will be based on gross pay. However, this can vary depending on the organization's policies.

Notice pay recovery could be on either side depending on the company policy. However, several other factors are taken into consideration as well. This includes leaves availed until the date of resignation, which is calculated on a pro-rata basis, any salary advances, damages to company property if incurred, any instances of leave without pay (LWP), and so on.

Regards