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|
|Calculation Type||Flat / Formula||Flat / Formula|
|Map To||Notice Pay||Notice Recovery|
|Round off Value||Nearest to INR 1/-||Nearest to INR 1/-|
|Is FBP component||No||No|
|Part of CTC||No||No|
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