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
Recovery
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