Full & Final Settlement Calculator
Everything due when someone leaves, with each legal deadline — as a printable statement.
Earnings
Deductions and net
How this was calculated
For general information only, not legal advice. Templates are generic starting points — have a qualified lawyer review anything you rely on.
About the Full & Final Settlement Calculator
A full and final settlement (F&F) is everything an employer owes — and recovers — when someone leaves. Enter the dates, the reason for leaving and the monthly pay, and the calculator adds salary for the days worked, leave encashment, gratuity under the Code on Social Security, the pro-rata statutory bonus under the Code on Wages, retrenchment compensation and notice pay where they apply, and any reimbursements; then subtracts notice recovery, loans and advances, TDS (entered by you) and other deductions to give the net payable in figures and words.
Every item shows the date it is due under India’s Labour Codes — final wages within two working days of a resignation, gratuity within 30 days — and the statement downloads as a PDF or prints, ready for the employee to sign.
How to use it
- Enter the date of joining, the last working day and why employment ended. Open Names for the statement to add the employee and employer for the PDF.
- Enter the monthly basic + DA, other pay counted as wages and allowances such as HRA, the first unpaid day and any unpaid days.
- Enter the leave days to encash. Leave gratuity and bonus on Work it out, or enter your own amounts; add the minimum wage for the bonus.
- For a retrenchment or closure, check the average pay and the day rate under More. Enter notice paid in lieu or not served.
- Add other earnings, loans and advances, TDS from your payroll and other deductions.
- Check the statement, the deadlines and the notes, then PDF, Print, CSV or Copy.
Examples
Salary for September ₹55,000 · leave ₹20,769.23 (₹30,000 ÷ 26 × 18) · gratuity ₹1,61,538.46 (₹40,000 ÷ 26 × 15 × 7) No statutory bonus: wages ₹40,000 are above ₹21,000 Net payable ₹2,37,308 (rounded)
Compensation ₹15,000 ÷ 26 × 15 × 7 = ₹60,576.92 · gratuity ₹60,576.92 · bonus ₹3,500 (6 months) · notice pay ₹20,000
Six years and nine months count as seven years for both: the part year is over six months.
What is added
- Salary for the days worked since the last salary, on the gross monthly pay — a full month is a full month; a part month by the days in the month, ÷ 30 or ÷ 26, as your payroll does; less unpaid days.
- Leave encashment: basic + DA ÷ 26 (or 30) × the leave days — see the leave encashment calculator for the earned leave a worker accrues.
- Gratuity, worked out by the gratuity calculator: five years’ continuous service (none on death, disablement or the end of a fixed term), 15 days’ wages (monthly wages ÷ 26 × 15) for each completed year or part over six months, up to the notified ceiling — ₹20 lakh by default, editable under More (Code on Social Security, 2020, s.53).
- Statutory bonus for the accounting year so far, if the wages are within the ₹21,000 limit: 8⅓% (up to 20%) of wages, with wages above ₹7,000 counted as ₹7,000 or the minimum wage (Code on Wages, 2019, s.26).
- Retrenchment or closure compensation: 15 days’ average pay for every completed year of continuous service or part over six months, for a worker with at least a year of service (Industrial Relations Code, 2020, s.70(b), s.75); capped at three months’ average pay for a closure for unavoidable reasons.
- Pay in lieu of notice, and other earnings such as reimbursements or arrears.
What is subtracted
- Notice not served, at the gross pay ÷ 30 (or 26) a day — only if your contract provides for it.
- Loans and advances, TDS and other deductions you enter. Income tax is not worked out: enter what your payroll deducts.
The Code on Wages allows deductions from wages only for the purposes in s.18(2) — fines, absence, advances, loans, income tax, PF and the like — and caps them at half the wages of a wage period (s.18(3)). The statement warns when the deductions are more than half of the final wages; a notice recovery is not on the s.18(2) list. Gratuity can be forfeited only in the cases in s.53(6) of the Code on Social Security.
When each item is due
- Final wages: within two working days of a resignation, removal, dismissal, retrenchment or closure (Code on Wages, s.17(2)); for retirement and other cases, with the normal wage period — by the 7th of the next month for monthly wages (s.17(1)(iv)).
- Leave encashment of a worker: by the end of the second working day after discharge, dismissal or quitting; within two months of superannuation or death (OSH Code, 2020, s.32(1)(vi)).
- Gratuity: within 30 days of becoming payable (Code on Social Security, s.56(3)); late payment carries simple interest (s.56(4)).
- Statutory bonus: within eight months of the close of the accounting year — by 30 November (Code on Wages, s.39).
- Retrenchment compensation and wages in lieu of notice: at the time of retrenchment (IR Code, s.70). The employer also pays 15 days’ last-drawn wages into the worker re-skilling fund, which credits it to the worker within 45 days (s.83).
The calculator counts working days from the day after the last working day, skipping the weekly days off and holidays you list.
Sources
- Code on Wages, 2019 (India Code) — ss.2(y), 17, 18, 26–39
- Code on Social Security, 2020 (India Code) — ss.53, 54 and 56
- Industrial Relations Code, 2020 (India Code) — ss.2(d), 2(zh), 66, 70, 75, 79 and 83
- Occupational Safety, Health and Working Conditions Code, 2020 (India Code) — s.32
- PIB — the four Labour Codes in force from that date
Limitations
- TDS, PF on the final wages, ESI and professional tax are not worked out — enter the figures from your payroll.
- Service is assumed to be continuous from the date of joining; breaks, transfers and earlier settlements change gratuity and compensation.
- Gratuity and the statutory bonus are worked out as if the employer is covered: gratuity applies to factories, mines, oilfields, plantations, ports, railway companies and shops or establishments with ten or more employees, and the bonus to establishments with 20 or more persons that the Code does not leave out. Choose Leave out for an employer that is not.
- The IR Code does not say how a day’s average pay is worked out from monthly pay; choose ÷ 26 or ÷ 30 under More.
- Leave deadlines are the OSH Code’s, for “workers”; for managerial and administrative staff, your policy and the State’s shops and establishments law apply.
- Contracts, settlements and awards can give better terms. An estimate for information, not legal or tax advice.
Privacy
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
What is included in a full and final settlement?
Salary for the days worked, leave encashment, gratuity (after five years, or on death, disablement or the end of a fixed term), statutory bonus for the year so far, retrenchment compensation if retrenched, notice pay, reimbursements and arrears — less notice recovery, loans and advances, TDS and other deductions.
How long does a company have to pay the F&F?
Under the Code on Wages, 2019, the wages of an employee who resigns or is removed, dismissed or retrenched are due within two working days (s.17(2)). Gratuity has 30 days (Code on Social Security, s.56(3)); the statutory bonus can wait until eight months after the year ends (Code on Wages, s.39).
How is retrenchment compensation calculated?
15 days’ average pay for every completed year of continuous service, or part of a year over six months (Industrial Relations Code, s.70(b)). For ₹15,000 a month and 6 years 9 months: ₹15,000 ÷ 26 × 15 × 7 = ₹60,576.92 (or ÷ 30: ₹52,500).
Is gratuity part of the full and final settlement?
Yes, when the employee qualifies — usually after five years of continuous service — but it has its own deadline of 30 days and cannot be withheld except as s.53(6) of the Code on Social Security allows.
Can the employer recover notice pay from the settlement?
Only if the contract provides for it. The Code on Wages limits deductions from wages to the purposes in s.18(2) and to half of the wages, and a notice recovery is not on that list — check your contract and settle it by agreement.
Is TDS deducted on the full and final settlement?
The taxable parts (salary, leave encashment above the exempt limit, bonus and others) are taxed as salary, so the employer deducts TDS. The calculator does not work it out: enter the amount from your payroll.