Where to add the notice period buyout formula?

When an employee decides to leave an organization, they are usually required to serve a notice period as per company policy — generally between 30 and 60 days. However, if the employee needs to leave early due to reasons like joining a new company or pursuing higher studies, they can opt for a notice period buyout, where they pay an amount equivalent to the unserved notice days.
For example, if an employee must serve 60 days but only works 30, they would pay the equivalent of 30 days’ salary as a buyout amount.

Keka allows you to create and manage notice period buyout policies easily.

How to Add a Notice Period Buyout Policy

1. Go to Payroll from the left menu.

2. Select the Settings tab.

3. Click on the Notice Period Buyout tab.

4. On the Notice Period Buyout screen, click Add Buyout Policy to create a new policy.

   

5. Enter the Name of the Policy and define the Calculation Expression to determine the per-day value for the buyout.

6. To include salary components in your formula, type them in manually or click +Existing Salary Component to select from existing ones.

7. Once the formula and details are added, click Save to complete the setup.