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Davison mathew (Accountant)     30 August 2008

Notice pay

Dear All,

 What is the meaning of Notice pay while preparing any employee's Full & Final?

For Eg:

Basic Pay    10000

HRA              5000

Transp Allow 2000

Medical Allo  1000

Special Allow 2000

TOTAL        20000

in the above case what will be the amount payable to that employee on account of one month Notice pay. Whether its one month basic salary or total salary???

pls give reference of any section under any act or any cases relating to this also.

pls reply.......... very urgent.

Thanks & Regards

Davison Mathew    


 8 Replies

Guest (n/a)     30 August 2008

notice pay comes where retrenchment u/s 25F of ID Act is done or when to resort to approval petition u/s 33(2)(b) of ID Act,

Krishnan Venkatachalam (Legal professional)     30 August 2008

Dear Mr.Davison Mathew,

 Employees  employed by Industrial establishment / factory are issued appointment order defining the terms and conditions of employemnt. Where an employees wants to leave the service of the company, he has to give notice to the Management( Normally one month for junior cadres and two to three months for senior cadres) so that the Management has adequate time to look for replacement of the outgoing employee. Similarly if the Management opts to remove an employee with or with out any reason the notice period clause provides for the notice period referred above. Further they same clause shall also include a term in lieu of notice which means either party ie, employer or employee can pay the salary equivalent to the notice period in lieu of serving the notice period subsequent to removal or resignation as the case may be. This is a very important mandatory clause in all appointment order issued by the organisation.

All appointment orders will also define salary for the purpose of Gratuity, bonus and P.F. deductions as basic + DA. Hence in line with this the notice pay per month shall be per month basic pay. Payment and deductions for notice period shall be made @ basic pay only and allowances shall not be included. In the above referred case basic pay of Rs.10,000/- shall be taken in to account for notice pay calculations.

H. S. Thukral (Lawyer)     01 September 2008

Basic pay, HRA and special allowance shall constitute notice pay in this case.

NIlima (Deputy Manager)     04 September 2008

it is mandatory to give notice before leaving the job.  therefore notice of leaving a job by way of resgination is should be given to the employer then only the employee is entitiled for notice pay. The context 'Notice pay' included what you are gaining for last months will continue for further notice period.


Guest (n/a)     26 September 2008

can company recover notice period of 3 month and also bond money of 6 month salary


Guest (n/a)     26 September 2008

can company hold Salary bonus PF against recovery of bond notice period

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     27 September 2008


Shruti Sharma   15 July 2022

Base pay *  Notice period = notice pay 

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