Notice period & severance in India.
Market notice-period norms by employment stage, the statutory gratuity and severance framework, and a gratuity estimator using the Payment of Gratuity Act formula. Reference as of early 2026.
Typical notice by employment stage.
| Stage | Typical notice | Notes |
|---|---|---|
| Probation (first 3–6 months) | 15–30 days | Shorter notice on both sides during probation is standard; exact terms are set by the employment contract. |
| Confirmed — individual contributors | 1–2 months (30–60 days) | One month is common at junior levels; two months is typical for mid-to-senior IT/product roles. |
| Confirmed — senior / leadership | 2–3 months (60–90 days) | Longer notice reflects handover complexity; sometimes buy-out clauses allow shortening. |
Notice periods are contractual, not statutory — these are prevailing market norms and vary by employer and contract.
Estimate statutory gratuity.
Statutory tax-exempt cap of ₹20,00,000 applies. Rates, wage ceilings, and tax slabs are set by Indian law and change over time; several vary by state, and the new Labour Codes are being phased in. Figures here are directional, current as of early 2026, and provided for reference only — not legal, tax, or payroll advice. Always verify against current EPFO, ESIC, CBDT, and applicable state rules, or speak with Remvix, before relying on them.
Notice period & severance — common questions.
What is the typical notice period in India?
Notice periods are set by the employment contract, not a single statute. Typical market practice: 15–30 days during probation, 1–2 months for confirmed individual contributors (two months is common for mid-to-senior IT/product roles), and 2–3 months for senior/leadership roles. Buy-out clauses sometimes allow shortening.
Is severance pay mandatory in India?
There's no general 'severance' entitlement for resignations, but statutory gratuity is payable on exit after 5+ years of continuous service under the Payment of Gratuity Act. Retrenchment (layoff) of covered workmen carries separate compensation under the Industrial Disputes Act (typically 15 days' average pay per completed year), subject to eligibility.
How is gratuity calculated?
Gratuity = (last drawn basic + DA) × 15 × completed years of service ÷ 26, payable after 5 years of continuous service, with a statutory tax-exempt cap of ₹20,00,000. Use the estimator above with the monthly basic + DA.
Is this legal advice?
Rates, wage ceilings, and tax slabs are set by Indian law and change over time; several vary by state, and the new Labour Codes are being phased in. Figures here are directional, current as of early 2026, and provided for reference only — not legal, tax, or payroll advice. Always verify against current EPFO, ESIC, CBDT, and applicable state rules, or speak with Remvix, before relying on them.
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