Notice Period Pay: Should It Be Based on Net or Basic Salary? Seeking Advice

Hi,

I have submitted my resignation to my company and am ready to serve a 15-day notice period. However, due to some circumstances, my resignation was accepted immediately, and I was assured via email that my 15 days' notice period would be paid out. Now, my question is regarding the calculation of the notice period amount. Is it calculated based on the net salary or the basic salary? My company calculates it based on the basic salary. Is this correct or incorrect? I was prepared to serve the notice period, but they did not want me to. Please advise.

Understanding Notice Pay and VRS Payouts

Companies sometimes pay notice pay or recover it, depending on the relationships and contributions employees have maintained. Companies also provide VRS payouts to their employees. However, the breakdown of notice pay is purely an internal matter dependent on the company you work for. The difference is not significant, and the company, in recognition of your performance, has been generously paying you notice pay. Therefore, please accept this graceful exit and inform the new employer that you are ready to join early. Joining the new organization promptly would be beneficial.

Regards,
RDS Yadav

I would agree with R S Yadav; the company was generous in giving you 15 days of basic pay and a smooth exit, which is more of a necessity than a meager difference in pay. You can check your termination clause to see if the notice period buyout is for 15 days of gross salary or basic salary, which will give you an idea.