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Methodology

Notice Period Cost methodology

Estimate the user-entered economic cost of a notice and transition period.
Duc Nguyen X.By Duc Nguyen X.· Founder, Wage101Last reviewed: View update historyMethodology

Educational only: Work and pay decision support, not tax, legal, financial or career advice.

Privacy: Calculations run locally; Wage101 does not receive your work or pay inputs.

Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral work and pay planning using your own assumptions.

1. Formulas and units

Total notice-period cost
totalNoticePeriodCost = delayOpportunityCost + unpaidPeriodCost + transitionCosts − employerContribution

Where

transitionCosts
Transition costs (currency units)Source: User assumption
employerContribution
Employer contribution (currency units)Source: User assumption
totalNoticePeriodCost
Total notice-period cost (currency units)Source: Calculated output
Delay opportunity cost
delayOpportunityCost = max(0, newWeeklyNet − currentWeeklyNet) × delayedWeeks

Where

delayedWeeks
Delayed weeks (weeks)Source: User assumption
currentWeeklyNet
Current weekly net pay (currency units/week)Source: User assumption
newWeeklyNet
New weekly net pay (currency units/week)Source: User assumption
delayOpportunityCost
Delay opportunity cost (currency units)Source: Calculated output
Unpaid-period cost
unpaidPeriodCost = currentWeeklyNet × unpaidWeeks

Where

currentWeeklyNet
Current weekly net pay (currency units/week)Source: User assumption
unpaidWeeks
Unpaid weeks (weeks)Source: User assumption
unpaidPeriodCost
Unpaid-period cost (currency units)Source: Calculated output

Money inputs and outputs use the currency selected in the scenario without changing the canonical methodology. Pay, time, benefits and work-related costs use the units stated beside each input.

2. Worked example

Input assumptions

Eight delayed weeks at 1,000 current and 1,500 new weekly net pay.

Calculation and outputs

Example

Eight delayed weeks at 1,000 current and 1,500 new weekly net pay.

Total notice-period cost
4,000.00 currency units
Delay opportunity cost
4,000.00 currency units
Unpaid-period cost
0.00 currency units

The engine returns 4,000 of delay opportunity cost.

Interpretation

Use the estimate only for the transition amounts and delay entered.

3. Validation and boundary checks

  • The worked example is calculated through the same shared-work-logic engine as the planner.
  • Non-finite and out-of-range assumptions return an input error.
  • Result cards, trace, CSV, PDF and methodology bind to named engine result fields.

4. Assumptions and source classification

  • Weekly net amounts are supplied by the user.
  • Employer contributions directly offset entered costs.

This calculator has no current policy-data dependency. Its work and pay assumptions are user supplied. Registered family-level regression suites exercise the shared work-logic engine and worked-result reconciliation.

5. Limitations

  • The tool does not determine enforceability, required notice or garden leave.
  • Tax and legal outcomes are excluded.

This is educational decision support, not personalised tax, legal, financial or career advice. Check the treatment of your circumstances under the rules that apply to you and seek qualified advice where appropriate.

6. Update and evidence policy

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. There is no official threshold or benchmark to refresh for this calculator. Work and pay inputs remain user-supplied because they vary by person, job and contract.

Change history

  1. : Initial public release of the Notice Period Cost planner and methodology.

Related reading

Use these practical guides to interpret the decision and its assumptions.

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