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Free Tool · Full & Final Settlement

Calculate your F&F settlement amount

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.

Days in last month
Unused leave days
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.

  1. 01

    Compute dues

    Sum unpaid salary, leave encashment, gratuity (if ≥ 5 years), pending bonus.

    gross = unpaid + leave + gratuity + bonus
  2. 02

    Apply deductions

    Subtract notice pay shortfalls, salary advances, asset recovery, tax dues.

    net = gross − deductions
  3. 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.
01
Labour Code

Code on Wages, 2019

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

02
Statute

Payment of Gratuity Act, 1972

Gratuity component computation in F&F settlements.

03
Tax Reference

Section 10(10AA) Income Tax

Tax exemptions on leave encashment in F&F.

04
Dispute Law

Industrial Disputes Act

Resolution framework for F&F disputes and delayed payment.

05
Payroll SaaS

RazorpayX Payroll

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

06
Consultancy

hinote.in

Exit and F&F practice for Indian HR teams.

FAQs about F&F

Common questions about full and final settlement.

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.

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.

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.

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.

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.

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

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.

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

Ready for the next step?

Auto-generate F&F in payroll

Superworks calculates F&F at exit — all dues, all deductions, all tax treatments — producing a one-page statement ready for sign-off.

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