Full and final settlement calculator
Estimate the net F&F: salary, leave encashment and gratuity, less recoveries.
Net full and final settlement
₹1,42,846
Before TDS
Leave encashment and notice recovery at basic ÷ 30 per day (some policies use gross). Gratuity uses the 5-year rule for permanent employees (fixed-term employees qualify after 1 year). Indicative only.
How it works
Full and final settlement (F&F) is the last payment to an employee who leaves. It adds salary for the days worked in the last month, leave encashment, gratuity if eligible, and other dues, then deducts recoveries such as notice shortfall and loan balances.
The Code on Wages, 2019, in force from 21 November 2025, requires wages to be paid within two working days of separation. Review your F&F timelines against it.
Formula
- Salary = monthly gross ÷ days in month × days worked
- Leave encashment = basic + DA ÷ 30 × leave days
- Gratuity = 15 × basic + DA × years ÷ 26 (if eligible, max ₹20 lakh)
- Notice recovery = basic + DA ÷ 30 × shortfall days (some policies use gross)
- Net = earnings − notice recovery − loans − other recoveries
Worked example
Gross ₹60,000, basic ₹30,000, 12 days worked, 15 leave days, 6 years 4 months
- Salary for 12 days: ₹24,000
- Leave encashment: ₹15,000
- Gratuity for 6 years: ₹1,03,846
- Net before TDS: ₹1,42,846
Common mistakes to avoid
- Missing the gratuity rounding rule (more than six months counts as a year).
- Forgetting unreturned assets and outstanding advances.
- Not recomputing TDS on the final figures.
- Delaying payment beyond the statutory timeline.
Full and final settlement calculator: FAQs
What is included in full and final settlement?
Salary to the last working day, leave encashment, gratuity if eligible, pro-rata bonus and reimbursements, less recoveries such as notice shortfall, loans and assets.
How soon must F&F be paid?
The Code on Wages requires wages to be paid within two working days of separation. Gratuity is due within 30 days of becoming payable.
Related reading
NeevHR runs these calculations for your whole payroll
PF, ESI, PT, TDS, gratuity and bonus computed from one employee record every cycle.
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