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Full and final settlement calculator: what should your last payout be?
Your F&F is a bundle: your last month's salary, leave encashment, gratuity if you qualify and anything else due, less any notice shortfall or advance your employer recovers. Enter your numbers to see an itemised estimate, how much of it is tax-free, and when each part should be paid. Wages are due within two working days of your last day.
Adjust the assumptions below.
Leave encashment tax details (optional)
₹2,29,744: ₹2,63,077 owed to you, less ₹33,333 in recoveries. Tax is deducted from this before it's paid.
You've completed 5+ years of continuous service — the standard eligibility threshold under Section 4(1) of the Payment of Gratuity Act.
Settlement statement
Owed to you- Salary for your last month15 days of 30 days at ₹3,333 a day (gross ÷ days in the month).
- ₹50,000
- Leave encashment24 days at ₹1,667 a day (Basic + DA ÷ 30).
- ₹40,000
- Gratuity₹1,73,077 on the 15/26 formula (6 years counted).
- ₹1,73,077
- Bonus, incentive or arrearsNone entered.
- ₹0
- ReimbursementsNone entered.
- ₹0
- Total owed to you
- ₹2,63,077
- Notice-period shortfall10 days unserved at ₹3,333 a day (gross ÷ 30).
- − ₹33,333
- Loans, advances and asset recoveriesNone entered.
- ₹0
- Total recoveries
- − ₹33,333
- Estimated net F&F, before tax
- ₹2,29,744
Tax on your settlement
Worked out on what you're owed, before recoveries.
| Part | Tax-free | Taxable |
|---|---|---|
| Last month's salary, bonus and arrears | ₹0 | ₹50,000 |
| Leave encashment | ₹40,000 | ₹0 |
| Gratuity | ₹1,73,077 | ₹0 |
| Total | ₹2,13,077 | ₹50,000 |
- Leave encashment: What you receive is lower than each of the other three limits, so the full amount is exempt.
- Gratuity: This estimate falls within the ₹20,00,000 tax-exemption ceiling for non-government employees (Section 10(10)(ii)), so none of it would be taxable — as long as you haven't already used up part of that lifetime cap at a previous employer, since it applies cumulatively across every job, not per job.
- TDS: Your employer deducts tax at source on the taxable part before paying you, at your slab rate. This tool doesn't work that out, and doesn't reduce your taxable income for any recovery: check how your Form 16 treats a notice-pay recovery.
When it should be paid
The legal clocks from our guide, counted from your last working day.
- Salary, leave encashment and other wagesWithin 2 working days of your last working day₹90,000 in this estimate, before recoveries
Section 17(2) of the Code on Wages, 2019, in force since 21 November 2025. It applies whether you resigned, were removed or retrenched, or the establishment closed. Delay can attract a penalty under Section 54 of the Code.
- GratuityWithin 30 days of becoming due₹1,73,077 in this estimate
Gratuity runs on its own, longer clock. Paying late attracts simple interest, commonly cited at around 10% a year.
- PF (EPF)Not part of the F&F your employer paysNot in this estimate
Your EPF balance is held by EPFO, not your employer. You transfer it to your new employer's PF account or withdraw it through EPFO, on EPFO's own process. See how your PF builds up.
Many employers still quote 30 to 45 days for F&F. That's an old payroll habit, not the law. Parts with their own statutory timelines, gratuity in particular, run on a separate clock, so the two-day rule is the headline for your pay, not automatically for every rupee. How to escalate a delayed F&F.
This is an estimate built on editable assumptions, not a settlement letter — see the full disclaimer below.
How the numbers are built
What's in your F&F, when it's due and how it's taxed — in plain language.
What goes into a full and final settlement?
It's a bundle, not one figure: unpaid salary up to your last working day, leave encashment for unused paid leave, pending approved reimbursements, pro-rata statutory bonus where it applies, and gratuity if you've completed the qualifying service. Netted off are valid deductions: a notice shortfall or buyout, recoverable advances, and unreturned-asset recoveries. Check each part.
How fast does it have to be paid?
Since 21 November 2025, Section 17(2) of the Code on Wages, 2019 puts the wages payable on exit, including salary dues and leave encashment, on a two-working-day clock from your last working day, whether you resigned or were let go. Gratuity runs on its own clock: within 30 days of becoming due. Many employers still quote 30 to 45 days out of habit.
What can your employer hold back?
Only what there's a valid reason for: an unserved notice period, genuine unreturned company assets, pending dues, or an active misconduct inquiry. If you've served or bought out your notice, returned everything and owe nothing, they don't have a valid reason to sit on your documents, and you're on strong footing to chase the money.
How is it taxed?
Salary, bonus and arrears are taxed as salary. Gratuity is tax-free up to ₹20 lakh for private-sector employees. Leave encashment on resignation or retirement is tax-free up to the lowest of four limits, one of them ₹25 lakh. Both limits are lifetime limits across every employer. Your employer deducts TDS on the taxable part; PF is separate and goes through EPFO.
Is your settlement late, or being held back? Our guide to full and final settlement in India covers the legal timeline, when an employer has a valid reason to wait, and the escalation ladder from a polite reminder to a legal notice.
Related tools
Check each part of your settlement in detail.
Please read before you rely on this
This is an estimate — not a settlement letter, and not legal or tax advice.
- Every figure is worked out from the numbers you enter, with the same formulas as our gratuity, leave encashment and notice-period buyout calculators. Your contract, your employer's policies and their F&F statement decide the real figure: what leave can be encashed and on what basis, how a notice shortfall is recovered, and which bonus or reimbursements are due.
- Your last month's pay is gross ÷ the days you enter × days worked. Some employers use a fixed 30 days or working days instead. Your final payslip will usually also deduct your own PF contribution, professional tax where your state levies it, and TDS. This estimate doesn't.
- Gratuity uses the Payment of Gratuity Act formula for covered establishments, assumes your exit isn't due to death or disability, and is only counted once you're eligible. The 1-year rule for fixed-term employees comes from the new labour codes, with state-level rules still rolling out through 2026, so confirm your employer applies it. A borderline case (the 240-day rule) is only counted if you choose. The Act's ₹20 lakh ceiling applies to what it compels an employer to pay; some employers pay more.
- The leave encashment tax split assumes a non-government employee resigning or retiring on or after 1 April 2023. The ₹25 lakh and ₹20 lakh limits cover your whole career: if you've claimed either before, the tax-free part may be lower. Enter any earlier leave-encashment claim under the tax details.
- The tax split is on what you're owed, before recoveries, and leaves reimbursements out. It doesn't work out TDS, your slab tax, or any relief for arrears you may be able to claim.
- The payment timelines are the ones set out in our full and final settlement guide: two working days for wages under Section 17(2) of the Code on Wages, and 30 days from becoming due for gratuity. PF is withdrawn or transferred through EPFO, separately from the F&F.
- This is not legal or tax advice. Confirm the figures with your employer's HR team, and your tax position with a chartered accountant. If the amount is significant or in dispute, get a professional opinion before you act.
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