Calculate your F&F settlement amount

Name: Salary Calculator
Brand: Superworks
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Unpaid salary + leave encashment + gratuity (5+ yrs) + bonus minus deductions = your full and final settlement payout.

Comprehensive Settlement Live Calculation Visual Breakdown

Exit details

Settlement on resignation, termination, or retirement. Gratuity applies only after 5 years of service.

Monthly Basic + DA

Last month worked

Days in last month

Unused leave days

Years of service (gratuity eligibility ≥ 5)

Pending bonus / incentives

Total deductions (notice pay, advances, recovery)

Net F&F payable

₹2.15 L

Net amount payable to employee in full-and-final settlement

Unpaid salary₹20,000

Leave encashment₹40,000

Gratuity₹1.38 L

Pending bonus₹0

Gross payable₹2.20 L

Deductions₹5,000

Net payable₹2.15 L

How F&F settlement is calculated

Full and final is the closing settlement when an employee leaves — combining all dues, deducting all recoveries.

01
Compute dues
Sum unpaid salary, leave encashment, gratuity (if ≥ 5 years), pending bonus.
```
gross = unpaid + leave + gratuity + bonus
```
02
Apply deductions
Subtract notice pay shortfalls, salary advances, asset recovery, tax dues.
```
net = gross − deductions
```
03
Payout
Net F&F must be paid within 30-45 days of last working day (Code on Wages timeline).
```
// pay within 30-45 days
```

FormulaNet F&F = (Unpaid salary + Leave encash + Gratuity + Bonus) − DeductionsGratuity: (Basic+DA) × 15 × Years ÷ 26, only if 5+ years (waived on death/disability).

Why we use this formula by default.
Indian payroll convention, statutory references, and the SaaS tooling that runs payroll all converge on this approach. Below are the authoritative sources we cross-checked.

Labour Code

Code on Wages, 2019

F&F timeline (within 30-45 days) and statutory dues framework.

Statute

Payment of Gratuity Act, 1972

Gratuity component computation in F&F settlements.

Tax Reference

Section 10(10AA) Income Tax

Tax exemptions on leave encashment in F&F.

Dispute Law

Industrial Disputes Act

Resolution framework for F&F disputes and delayed payment.

Payroll SaaS

RazorpayX Payroll

Auto F&F engine with all dues, deductions, and tax handling.

Consultancy

hinote.in

Exit and F&F practice for Indian HR teams.

FAQs about F&F

When should F&F be paid?

Per Code on Wages 2019: within 2 working days of last working day for termination/retrenchment; usually 30-45 days for resignation. Companies that delay are liable for interest + penalties.

What if employer doesn't pay F&F?

File complaint with the Labour Commissioner. Approach the Industrial Tribunal if amount is significant. Section 22 of Industrial Disputes Act gives strong protection — employer pays + penalty.

Is F&F taxable?

Component-wise: unpaid salary and bonus are fully taxable. Leave encashment: tax-free up to ₹25L lifetime (private). Gratuity: tax-free up to ₹20L (Payment of Gratuity Act). TDS applies as in regular salary.

Can the employer deduct anything?

Yes — only what was contractually agreed: notice pay (if you didn't serve full notice), salary advances, unreturned assets (laptop, phone), training bond claims if applicable. Disputed deductions can be challenged.

What about gratuity if I leave before 5 years?

Not payable in normal cases. Exceptions: death or permanent disablement — gratuity is payable regardless of tenure. Some companies offer ex-gratia in lieu of gratuity for senior exits.

Do I lose unused leave on exit?

No — earned leave must be encashed at the per-day rate (basic ÷ 30 × leave days). Sick leave usually lapses. Casual leave: check company policy.

What documents must employer provide?

Relieving letter, experience certificate, last salary slip, Form 16 (for the partial year), F&F statement, and EPF transfer/withdrawal Form 19/10C. Demand these in writing.

Can I negotiate F&F amount?

Yes — especially for disputed deductions (notice pay shortfall, recovery items). For genuine dues (gratuity, leave encashment), the law mandates payment — no negotiation needed.

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Calculate your F&F settlement amount

Exit details

How F&F settlement is calculated

Compute dues

Apply deductions

Payout

Code on Wages, 2019

Payment of Gratuity Act, 1972

Section 10(10AA) Income Tax

Industrial Disputes Act

RazorpayX Payroll

hinote.in

FAQs about F&F

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