Understanding Notice Period Salary Calculation and Employee Rights: CTC vs. Basic Salary - CiteHR

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Respected Sir,

Question regarding the serving notice period

My appointment letter states that if I decide to leave the company, I will serve a 2-month notice period or pay the salary for 2 months. The word "salary" is not clearly defined in the appointment letter. I served a 15-day notice period and now wish to pay for the remaining duration. My company has calculated the due amount based on my CTC, while I believe it should be based on the basic salary.

Sir/Madam, please advise me on my rights as an employee. I have left the company after serving 15 days of the notice period. I resigned by requesting them to accept my resignation urgently and to follow the necessary steps as per clause number 4 (job termination clause mentioned in the appointment letter).

Clarification on salary calculation for notice period

I believe that for the remaining duration of the notice period, the company should claim the amount based on the basic salary. However, they seem to be insisting on claiming 45 days' salary based on CTC. I reiterate that my appointment letter specifies that in the event of leaving the job, I must serve a 2-month notice period or pay the salary for that duration. There is no clarification on whether this salary will be calculated based on the basic salary or the CTC.

Your insights would be greatly appreciated.

Thanks and regards!


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Hi, Normally, the salary in lieu of the notice period has to be calculated based on the gross salary. As it is not clearly mentioned in the appointment letter, you need to check with your employer and look for an amicable solution.
From India, Madras
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