A full and final settlement calculator for Indian employees and HR
This full and final settlement calculator builds the statement you get when you leave a job in India: unpaid salary for the final month, leave encashment, gratuity, notice pay recovered or paid in lieu, bonus and other dues, less employee PF, professional tax, loans and an estimate of TDS. It shows each line, how it was worked out, the net amount and the date it is due.
Every item is tagged law or policy. Gratuity, the payment deadline, statutory bonus and PF follow the Labour Codes; the leave rate, notice terms and any incentive follow your appointment letter and HR policy, so you can change them to match. Gratuity is worked out by the same engine as the gratuity calculator. Everything runs in your browser and nothing is uploaded. Treat the result as an estimate, not legal or tax advice.
How to use the Full and Final Settlement Calculator
- Enter your date of joining, last working day, the reason you are leaving and whether the gratuity law covers your employer.
- Type your monthly gross salary and basic + DA as on the last payslip.
- Under Salary and leave, enter the unpaid days and your leave balance, then pick the divisors your policy uses.
- Under Notice period, say whether you served it, left early (recovery) or were released with pay in lieu, and the number of days.
- Add any bonus, other dues, deductions and the salary already paid this tax year for the TDS estimate.
- Copy the statement, download it as a CSV for Excel, or print it and compare it with your employer’s F&F sheet.
Full and Final Settlement Calculator features
One statement
Earnings, deductions and the net figure in the order HR uses, with the working shown for every line.
Gratuity done properly
Five-year rule, six-month rounding, fixed-term after one year, the 50% wage rule and the ₹20 lakh ceiling.
Tax-aware
Tax-free leave encashment (least of four limits), tax-free gratuity and a slab-based TDS estimate for either regime.
Law or policy
Each line says whether a statute or your employer’s policy sets it.
Excel and print
Download a CSV that opens in Excel or print a clean statement.
Full and final settlement calculation formula
Net settlement = unpaid salary + leave encashment + gratuity + bonus + other dues + notice pay in lieu − notice recovery − PF − professional tax − loans − TDS. The default example: joined 10 June 2019, resigned with a last day of 31 October 2026, gross ₹2,00,000 and basic + DA ₹80,000 a month.
- Unpaid salary: 31 days × ₹2,00,000 ÷ 31 = ₹2,00,000 for October.
- Leave encashment: 18 days × ₹80,000 ÷ 30 = ₹48,000.
- Gratuity: service is 7 years 4 months, so 7 years count. Basic + DA is under half of gross, so wages are raised to ₹1,00,000: 1,00,000 × 15 × 7 ÷ 26 = ₹4,03,846.
- Notice recovery: 15 days short × ₹2,00,000 ÷ 30 = ₹1,00,000.
- Deductions: PF 12% of ₹25,000 = ₹3,000, professional tax ₹200, and TDS of about ₹74,100 on ₹1,50,000 of taxable dues after ₹12 lakh already paid. Net: ₹5,24,546.
Which rules come from law and which from your employer
The four Labour Codes came into force on 21 November 2025 (Gazette notifications S.O. 5319(E) to 5322(E) of that date), replacing the Payment of Wages Act, 1936, the Payment of Gratuity Act, 1972 and the Payment of Bonus Act, 1965 for most purposes. Many companies still pay F&F 30 to 45 days after exit; the two-day rule applies to wages, and you can raise a claim if dues are held back.
| Component | Set by | Key rule |
|---|---|---|
| Payment date | Code on Wages, 2019, s.17(2) | Wages due on resignation, removal or retrenchment within two working days |
| Gratuity | Code on Social Security, 2020 | 15 days’ wages ÷ 26 per year; five years (one for fixed-term); ₹20 lakh ceiling; paid within 30 days |
| Statutory bonus | Code on Wages, Chapter IV | 8⅓% to 20% for wages up to ₹21,000, on ₹7,000 or the minimum wage |
| Leave encashment | OSH Code s.32, state Shops Acts, policy | Rate (basic or gross, ÷ 30 or ÷ 26) set by policy; tax-free limit ₹25 lakh |
| Notice pay | Appointment letter, standing orders | Days short × one day’s pay; no GST on recovery |
| Retrenchment compensation | Industrial Relations Code, s.70 | 15 days’ average pay per completed year — see the retrenchment calculator |
Common mistakes in F&F settlements
- Counting 4 years 7 months as five years on resignation — the six-month rounding only applies once you already qualify.
- Encashing leave on gross pay when the policy says basic + DA, or the other way round.
- Recovering notice pay for days already covered by leave your policy lets you set off — check with the notice period calculator.
- Ignoring the 50% wage rule for gratuity when allowances make up most of the pay.
Full and Final Settlement Calculator FAQ
How is full and final settlement calculated in India?
Add unpaid salary, leave encashment, gratuity, bonus, other dues and any notice pay in lieu, then subtract notice recovery, PF, professional tax, loans and TDS. The full and final settlement calculator above shows each step.
How many days does the company have to pay full and final settlement?
Under the Code on Wages, 2019, wages due when you resign or are removed must be paid within two working days. Gratuity must be paid within 30 days of becoming payable.
Is gratuity part of full and final settlement?
Yes, if you qualify: five years of continuous service (one year for a fixed-term employee, none on death or disablement).
Is notice period recovery taxable or subject to GST?
No GST is charged on notice pay recovered from an employee (CBIC Circular 178/10/2022-GST). Pay in lieu of notice received from the employer is taxed as salary.
Is leave encashment at resignation tax-free?
For non-government employees, the least of the amount received, ₹25 lakh, ten months’ average salary and leave at 30 days per completed year is tax-free.
Can I get the full and final settlement calculation format in Excel?
Yes. Press “Download CSV (Excel)” to save the statement with every component, its working and whether law or policy sets it.