Job search29 September 20265 min read

Notice period buyout in India: how it works and how to negotiate it

A 90-day notice period can cost you an offer. Here is how buyout is calculated and how to get it paid or waived.

Many Indian employers, especially IT services, keep 60–90 day notice periods. Hiring managers often need someone in 30. Buyout means paying your employer for the unserved days so you can leave early.

How the amount is calculated

Most companies use basic salary (sometimes gross) ÷ 30 × unserved days. Check your appointment letter — the basis changes the figure a lot.

Three ways to reduce it

Adjust earned leave against notice where policy allows.
Ask your manager for early release after a clean handover plan.
Ask the new employer to reimburse buyout as a joining bonus.

“I'm keen to join by the 15th. My notice is 90 days with a buyout option of about ₹1.2 lakh. Would you be open to covering it as part of the joining bonus?”

Work out your exact last working day and buyout cost with the free notice period calculator before you resign.

Frequently asked questions

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