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Notice period salary in India: do you get full pay while serving?

Notice period salary rules in India — full pay vs bench, garden leave, unpaid leave, and what happens to PF and bonus when you resign or are asked to leave.

7 min read · Updated 11 July 2026

Notice period salary is not a separate category — it is your regular salary for days you actually work during notice. Most IT and corporate policies pay full fixed pay if you serve. Bench, garden leave, or “do not come to office” can change what you are owed — read your appointment letter and HR policy, not LinkedIn comments.

When you resign

  • Standard: full fixed salary for each day served in notice (typically 30–90 days).
  • Variable pay and bonus: often pro-rated or forfeited if you leave before payout date — check policy.
  • PF continues until last working day; gratuity needs 5 years (or as per policy).
  • Employer may release early — confirm in writing whether notice is waived with full pay.

When employer terminates

Payment in lieu of notice (garden leave or pay without work) depends on contract. Some companies pay notice-period salary without requiring attendance; others bench you on reduced duties. Anything not in writing is negotiation, not entitlement.

Notice period vs buyout

Buyout means paying for days you do not serve — different math. If your new employer offers to cover buyout, get reimbursement terms and tax treatment on paper before you resign.

The takeaway

Never resign on verbal promises about notice waiver or bonus. Email confirmation from HR beats regret.

Common questions

Do I get full salary during notice period in India?
Usually yes for days you serve — full fixed pay per company policy. Variable and bonus may be pro-rated or forfeited; read your appointment letter.
What is garden leave salary?
Employer may pay notice-period salary without requiring work — depends on contract. Get garden leave terms in writing from HR.
Is notice period salary taxable?
Yes — it is regular salary income, taxed per your slab like any other month.

Try it yourself

Keep reading

General education, not personalised financial advice. Rules and rates change — verify the current position before you act.