How much to pay to buy out notice period? Can i pay only the basic pay?

drkalpanabnys
I am working in a college. As per the appointment order clause, i must resign on end of semester and three months notice period to be given or pay the three months salary. My question is, can i pay only the basic pay and Academic grade pay, and not other allowances? Please suggest me urgent. As i am being harrased and need a relief. Already am becoming Ill. Please help me
vmlakshminarayanan
Hi,

In normal course Gross pay of the employee will be considered for recovery of salary against shortfall in notice. However check your appointment terms in detail.
KK!HR
The allowances like HRA, Transport, Medical, LTA etc which are in the nature of reimbursement of expenses are not to be included in the payment for the notice period but fixed pay components like Basic, DA etc are payable
Madhu.T.K
Very simple, my view about "salary' is that 'salary' means the amount your employer considers for deduction in case you take a leave without pay. The employers (of course, the HR or the Personnel Managers) consider gross pay inclusive of all allowances to deduct a LOP but will take only Basic pay for calculating benefits payable to the employees. This is wrong. If you are offered a salary, it will be gross amount and it is for the convenience of the employer that the same is bifurcated into smaller compartments and the employee will never say that his basic should be this much, the HRA should be like this and so on. That means salary in total should be the base for everything, deciding notice pay, compensation for termination of employment, calculation of gratuity, leave encashment etc.
rkn61
Notice period pay differs from Employer to Employer. Few employers will accept one months' gross salary in lieu of one months notice period. Some others may accept basic salary, DA and special pay excluding HRA or Conveyance allowance.

Please go through your offer of appointment before deciding to pay.
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