Full and final settlement, computed and paid through payroll
An F&F worksheet that works out final salary, leave encashment, gratuity, pro-rata bonus and reimbursements, less notice, loan and asset recoveries and final-month statutory deductions, then posts to a full and final payroll run.
- Earnings
- Recoveries
- Statutory in the same step
Earnings
Recoveries
Rupees one lakh seventy four thousand five hundred only
What full & final settlement does in NeevHR
Earnings
Salary to the last working day, leave encashment per leave type, gratuity with the ₹20 lakh ceiling, pro-rata statutory bonus, severance and unpaid approved expenses.
Recoveries
Notice shortfall (waived or leave-adjusted lines shown at nil), loans and advances, unreturned assets at book value, excess salary and final-month LOP.
Statutory in the same step
TDS on the settlement plus final-month PF, ESI, PT and LWF, with gratuity and leave-encashment exemptions calculated.
Controls
Settlement is blocked while assets are still assigned, and the person who gave final sign-off cannot also settle.
How full & final settlement works, step by step
- 1
Resignation approved
The exit moves through its approval chain and notice period.
- 2
Clearance
Departments complete clearance tasks, in sequence or in parallel.
- 3
Final sign-off
The final authority signs off once mandatory clearance is complete.
- 4
Worksheet
Earnings, recoveries and statutory deductions are computed on the F&F worksheet.
- 5
Settle
Settlement posts to a full and final payroll run, so the register, ECR, TDS challan, Form 24Q and Form 16 include the leaver.
Benefits
- No separate spreadsheet for F&F
- Loans, assets and leave updated in the same step
- Gratuity forfeiture only through an approved request, for termination for cause
Who uses it
- HR
- Runs the exit and settles.
- Department owners
- Clear their items.
- Payroll and finance
- Pay and account for the settlement.
Set as rule sets by your HR admin, assigned to employee groups.
- Leave encashment base and day divisor
- Gratuity, encashment and bonus on or off per entity
- Notice recovery policy by exit type
- F&F due days after the last working day
Every list becomes a report; every report a chart that drills to records.
- F&F settlement register
- Pending settlements
- Gratuity forfeiture approvals
Full & final settlement does not run in a silo
Like every module, it sits on one effective-dated employee record, with India's statutory rules, configuration and governance shared across the platform.
Built for India, only India
PF, ESI, PT, LWF and TDS, gratuity, bonus and the DPDP Act 2023 are part of the core product, not an add-on. INR and the India financial year throughout.
Depth without the drag
Process discipline and statutory accuracy for growing and mid-market companies, without the cost or the multi-year rollout of a tier-one suite.
Implemented in weeks
A typical implementation takes 4 to 8 weeks, depending on employee count, data quality, integrations and payroll complexity.
Configured by your HR admin
Leave, attendance, payroll, expense and appraisal are configurable rule sets assigned to employee groups. A trained HR admin can own them, no certified consultant required.
Full & final settlement: frequently asked questions
What does the F&F worksheet include?
Salary to the last working day, leave encashment, gratuity if eligible, pro-rata bonus, severance and unpaid approved expenses, less notice shortfall, loans, unreturned assets, excess salary, final-month LOP and statutory deductions including TDS.
How soon must F&F be paid?
The Code on Wages, 2019, in force from 21 November 2025, requires wages to be paid within two working days of separation. Set your F&F due days to match.
Are relieving and experience letters generated?
Yes. The relieving letter is available after F&F is posted and the experience certificate from the last working day, generated for printing. The F&F statement is a PDF.
Explore related modules
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