Calculate an employee's full and final settlement — pending salary, leave encashment, gratuity and bonus, less notice recovery and advances. Free, no signup.
Full and final settlement (F&F) is the closing of all dues between an employer and a departing employee. It adds up everything owed — unpaid salary for the days worked in the last month, encashment of unused leave, gratuity if eligible, and any pending bonus or reimbursement — then subtracts recoveries such as notice-period shortfall, salary advances and outstanding loans. The balance is the final amount paid out.
Most Indian employers settle within 30 to 45 days of the last working day, and many company policies commit to it in writing. Several state Shops and Establishments rules and the Payment of Wages Act expect wages due on termination to be paid by the second working day after the employment ends, so a long delay is worth challenging in writing with HR.
Typically: salary for the days actually worked in the final month, encashment of accumulated earned or privilege leave, gratuity when five years of continuous service are complete, any pending performance bonus or incentive, and unclaimed reimbursements. Deductions usually cover notice-period shortfall, salary advances, loan balances, unreturned company assets and applicable TDS.
Parts of it are. Unpaid salary, bonus and notice-pay recovery adjustments are taxed as salary income. Gratuity is exempt up to ₹20 lakh for covered employees under Section 10(10). Leave encashment at retirement or resignation is exempt for non-government employees up to ₹25 lakh under Section 10(10AA), with the balance taxable. Your employer deducts TDS on the taxable portion.
Yes, if the employment contract allows it. When an employee serves less notice than the contract requires, the employer can recover pay for the shortfall days and set it off against the settlement amount. The rate used should match what the appointment letter states — often basic salary, sometimes gross. Enter that recovery in the deductions below.
For establishments covered by the Payment of Gratuity Act, gratuity is (last drawn basic + dearness allowance) × 15 ÷ 26 × completed years of service. Five years of continuous service is the eligibility threshold, except on death or disablement. Use the dedicated gratuity calculator for the precise figure, then enter it here.
Yes. Because Avani Business OS already holds each employee's salary structure, attendance, leave balance and joining date, it computes the settlement from their own records — pending salary, leave encashment, gratuity and recoveries — and produces the settlement statement together with the experience and relieving letters.
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