Notice Pay: Amount paid to the Employee by the Employer if the former is terminated from job before the Notice period
Notice Recovery: Amount recovered from the Employee by the Employer if the former leaves job before the Notice period
To create these components, please go to Settings >> Salary components >> click “New”
The configuration of both the components is as under:
| Component | Notice Pay | Notice Recovery |
| Name | Notice Pay | Notice Recovery |
| Abbreviation | NP | NR |
| Paid Component | Yes | Yes |
| Pay Type | Earning | Deduction |
| Tax Status | Taxable | Non-Taxable |
| Calculation Type | Flat / Formula | Flat / Formula |
| Map To | Notice Pay | Notice Recovery |
| Round off Value | Nearest to INR 1/- | Nearest to INR 1/- |
| Component Type | Variable | Variable |
| Is FBP component | No | No |
| Attendance Dependent | No | No |
| Part of CTC | No | No |
| Active | Yes | Yes |
| FFS component | Yes | Yes |
Once created and configured as above, these need to be allocated to all Employees.
Please Note: If the calculation type is updated as “Formula” in the above configuration, then update the precise formula in the formula field as per the HR policy.
Later, while processing FFS:
a. If calculation type is “Flat”, update the figures directly in the fields provided
b. If calculation type is “Formula”, then update the Notice Pay or Recovery days in the fields provided