Notice Pay Calculator
Calculates the notice pay owed when an employee resigns or is released, by multiplying the agreed notice period in months by the monthly salary.
Recent
Formula
How the calculation works
Notice pay is the cash amount that replaces the working notice an employee would otherwise serve before leaving a job.
The calculation is a simple multiplication of the number of notice months by the monthly salary, so one month of notice equals one month of pay.
Some employers waive part of the notice period, and any month or fraction actually served reduces the amount of notice pay still owed.
Common mistakes
- Using the gross salary with all allowances instead of the monthly salary agreed in the contract can overstate the notice pay figure.
- Counting the notice period from the resignation date rather than the last working day is a frequent slip that shifts the number of months.
When to use it
- Use it before resigning to estimate how much you must be paid, or must pay, for the notice period.
- Use it in HR exit paperwork to record the notice pay component separately from salary and gratuity.
Worked example
With a monthly salary of 30,000 taka and a 1 month notice period, the notice pay is 30,000 taka.
Common questions
Is notice pay the same as one month of salary?
It is a cash substitute for the notice period, so one month of notice pay usually equals one month of salary, but it is reported separately from earned salary in the final settlement.
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