Full and Final Settlement Calculator
Estimate your full and final (FnF) settlement before HR does: pending salary, leave encashment, gratuity, and bonus — minus notice recovery and deductions. Know what to expect, when it's legally due, and how to escalate if it's late.
Quick answer: FnF = pending salary + leave encashment + gratuity + bonus − notice recovery − deductions. Example: ₹48,000 pending salary + ₹48,000 leave encashment + ₹10,000 bonus − ₹20,000 notice recovery = ₹86,000 before TDS. India's Code on Wages requires final wages within 2 working days; complete FnF typically takes 30–45 days.
What Full and Final Settlement Includes
FnF = Pending Salary + Leave Encashment + Gratuity + Bonus/Incentives + Reimbursements − Notice Recovery − Other Deductions − TDS
| Component | How it's calculated |
|---|---|
| Pending salary | (Monthly salary ÷ 30) × unpaid days worked, incl. notice period served |
| Leave encashment | (Basic+DA ÷ 30) × unused EL days — calculate here |
| Gratuity | (Basic+DA) × 15/26 × years, if 5+ years — calculate here |
| Bonus / variable pay | Earned/prorated amounts per plan; statutory bonus if applicable |
| Reimbursements | Approved expenses submitted before exit |
| Notice recovery (−) | Per-day salary × notice shortfall days if you left early |
| Other deductions (−) | Advances, loans, asset recovery (with authorization), TDS |
Worked Examples
Example 1 — standard resignation. ₹80,000/month, 18 unpaid days, ₹48,000 leave encashment, ₹10,000 bonus, ₹20,000 notice recovery: pending salary (80,000 ÷ 30) × 18 = ₹48,000 → FnF = 48,000 + 48,000 + 10,000 − 20,000 = ₹86,000 before TDS.
Example 2 — long-tenure exit. ₹1,00,000/month (₹55,000 Basic+DA), full notice served with 12 unpaid days, 40 EL days (₹73,333), 8.6 years gratuity (₹2,72,885), prorated bonus ₹35,000: FnF ≈ 40,000 + 73,333 + 2,72,885 + 35,000 = ₹4,21,218 — gratuity and leave dominating, both computed on Basic+DA.
Example 3 — buyout exit. Leaving 30 days early on ₹90,000/month: notice recovery ₹90,000 can exceed the final month's pending salary — a negative FnF is possible, payable by you (or your new employer's reimbursement). Run the numbers before committing a joining date.
When Must FnF Be Paid?
India's Code on Wages, 2019 requires final wages within two working days of the last day. In practice, complete FnF (with gratuity, encashment, and clearances) is processed in 30–45 days by most companies — a norm, not a legal entitlement to delay wages. Gratuity separately must be paid within 30 days (10% interest beyond). Delay past 45 days deserves written escalation; past 60, the labour authorities.
Each Deduction, Scrutinized
- Notice recovery: per-day salary × shortfall days — but check whether policy computes it on basic or gross (basic-based recovery is far cheaper for you) and whether your notice end date was counted correctly.
- Asset recovery: laptop/ID non-return deductions need policy backing and reasonable valuation — depreciated value, not purchase price.
- Training bonds: enforceable only if reasonable in amount and duration and tied to actual training costs; blanket "pay 2 lakh if you leave within 2 years" clauses are frequently struck down.
- TDS: applies to taxable components (salary, bonus, taxable encashment/gratuity excess). Verify your Form 16 covers the FnF month — a common mismatch at tax-filing time.
- PF is NOT part of FnF: your provident fund sits with EPFO — transfer it to the new employer via Form 13 or withdraw per rules, separately from the company settlement.
Documents to Collect With Your FnF
- FnF statement — itemized computation; check each line against your own math.
- Relieving letter and experience certificate — background checks at future employers depend on these.
- Form 16 (for the exit year) and final payslips.
- Gratuity certificate if paid — needed for the lifetime ₹20L exemption tracking.
- PF and pension (EPS) statements — confirm the last month's contribution was deposited.
If Your FnF Is Late or Wrong
- Write to HR with your itemized calculation (the copy button on this calculator preserves your baseline) and ask for the FnF statement.
- Escalate internally — payroll head, then whistleblower/grievance channels; most delays are process, not malice.
- Labour authorities: file with the labour commissioner under the Code on Wages / Payment of Wages Act (and the Controlling Authority for gratuity). Fees are nominal, lawyers optional, and settlement follows quickly in clear-cut cases.
- Keep leverage in mind: companies want alumni goodwill and Glassdoor calm; a factual, documented escalation email resolves most cases without any filing.
Global Equivalents
The FnF concept maps to the US final paycheck (state deadlines, PTO payout rules) and the UK final pay (normal payroll date, untaken statutory holiday paid out). The Indian system's distinctive elements are gratuity, Basic+DA-based encashment, notice recovery, and the document bundle (relieving letter culture) — all of which this page's linked calculators cover individually.
Frequently Asked Questions
What is full and final settlement?
The complete closing payment when you exit: unpaid salary, leave encashment, gratuity, earned bonuses and reimbursements, minus notice recovery, advances, and TDS — plus your exit documents.
How long does FnF settlement take in India?
The Code on Wages requires final wages within 2 working days of exit; complete FnF including gratuity and clearances typically takes 30–45 days. Beyond 45 days, escalate in writing; beyond 60, approach the labour commissioner.
How is pending salary calculated in FnF?
(Monthly salary ÷ 30) × unpaid days worked, including served notice days. Some companies divide by actual month days or working days — check the FnF statement's method.
What is notice period recovery?
If you serve less notice than contracted, the employer deducts per-day salary for the shortfall — the mirror of a buyout. Verify whether it's computed on basic or gross pay.
Is FnF settlement taxable?
Component-wise: pending salary and bonus are fully taxable; leave encashment is exempt up to Section 10(10AA) limits (₹25L lifetime); gratuity exempt up to ₹20L. TDS applies on taxable parts and should reflect in your Form 16.
Is PF part of the FnF settlement?
No — provident fund sits with EPFO independently. Transfer it to your next employer (Form 13) or withdraw per rules; only confirm the final month's contribution was deposited.
Can FnF be negative?
Yes — a large notice-recovery (leaving very early) can exceed your dues, leaving an amount payable by you. Negotiate a buyout or new-employer reimbursement before fixing your joining date.
Can my employer withhold FnF for non-return of assets?
They can deduct reasonable, policy-backed asset values but cannot withhold the entire settlement indefinitely. Earned wages are protected; dispute excessive valuations in writing.
What documents should I get with my FnF?
Itemized FnF statement, relieving letter, experience certificate, final payslips, Form 16, gratuity certificate if applicable, and PF/EPS statements confirming final deposits.
What can I do if my employer delays FnF?
Escalate in writing with your itemized calculation, then file with the labour commissioner under the wage laws (and the Controlling Authority for gratuity — which accrues 10% interest when late). Documented escalation resolves most cases pre-filing.
✓ Formula verified • Last updated: July 10, 2026