Full & Final Settlement Calculator
Estimate your final payout on resignation — salary, leave, gratuity, bonus and recoveries.
Full and final settlement is the last payment your employer makes after you resign. It combines pending salary, encashed leave, gratuity and any unpaid bonus, then subtracts notice recovery, advances and tax. This calculator assembles all of it so you can check the figure HR sends you.
Your exit details
Result
Fill in the fields above and your result will appear here.
What the Full & Final Settlement Calculator does
F&F is where several separate entitlements meet, and errors are common — a missed leave balance, gratuity omitted despite qualifying service, or a notice recovery calculated on gross when your contract says basic. Each of those can be worth tens of thousands of rupees.
The calculator separates additions from deductions so you can compare line by line against the settlement statement. If a line is missing from theirs, that is the question to raise with HR.
How to use this tool
- Enter your monthly gross and your Basic + DA. Gratuity and leave encashment both depend on the second figure.
- Enter how many days you worked in your final month and how many days that month has.
- Add your unused earned leave balance and choose whether your employer encashes on basic or gross.
- Enter completed years of service. Gratuity is included automatically once you cross five years.
- Add pending bonus and reimbursements, then enter any notice shortfall, advances and estimated TDS.
- Compare the breakdown line by line with the statement your employer issues.
Formula and method
Pending salary = (Monthly gross ÷ Days in month) × Days worked
Leave encashment = (Basic + DA ÷ 30) × Unused leave days
Gratuity = (Basic + DA) × 15 × Completed years ÷ 26
Notice recovery = (Basic + DA ÷ 30) × Notice days not served
Settlement = Salary + Leave + Gratuity + Bonus + Reimbursements
− Notice recovery − Advances − TDS
The 30-day divisor for leave and notice is the convention most Indian employers apply. Some use 26 working days for leave encashment, which yields a higher figure — check your policy.
Worked example
Example: leaving mid-month after 6 years
| 15 days of salary (gross ₹80,000) | ₹40,000 |
| 18 days leave encashment (basic ₹32,000) | ₹19,200 |
| Gratuity — 6 years | ₹1,10,769 |
| Total payable | ₹1,69,969 |
| Less notice recovery, advances, TDS | ₹0 |
| Net settlement | ₹1,69,969 |
Gratuity dominates the settlement once you cross five years — which is why the exact resignation date matters so much when you are close to that threshold.
What your result means
The net figure is what should reach your account, usually within 30 to 45 days of your last working day. If it is materially lower than this estimate, ask for the line-item statement rather than the total.
A negative result means recoveries exceed dues, which happens with a large notice shortfall or an outstanding advance. Employers generally require this to be cleared before issuing a relieving letter.
Remember that your EPF corpus sits outside the settlement entirely. Transfer it to your new employer through the EPFO portal rather than withdrawing it, unless you genuinely need the money.
Important considerations
- Leave encashment is fully taxable as salary for private-sector employees while in service, with a limited exemption at retirement. Government employees are treated differently.
- Gratuity up to ₹20,00,000 is exempt as a lifetime aggregate. Anything above that is taxable.
- Get the settlement statement in writing before you sign a full-and-final acceptance. Signing usually forecloses later claims.
- The relieving letter and experience certificate are separate from the money, and employers often hold both until recoveries are cleared.
- Unreturned assets — laptop, phone, ID card, access devices — are commonly recovered at book value. Return them and get a written acknowledgement.
Limitations of this tool
- TDS is taken as an input rather than computed, because it depends on your total income for the year, the regime you have chosen and tax already deducted.
- Employer-specific components such as retention pay, deferred bonus, ESOP settlement, notice waivers and superannuation are not modelled.
- Leave encashment caps, carry-forward limits and lapse rules vary by employer and are not applied automatically.
Frequently asked questions
How long does full and final settlement take in India?
Commonly 30 to 45 days from the last working day. Many employers commit to a specific timeline in their exit policy; wage payment legislation also prescribes timelines for settling wages on termination of employment. If it drags well beyond that, escalate in writing and then to the labour commissioner.
Is leave encashment taxable?
For private-sector employees, leave encashment received during service is fully taxable as salary. On retirement or resignation there is a limited exemption under Section 10(10AA), subject to a lifetime cap. Government employees receive full exemption.
Can my employer deduct notice pay from the settlement?
Yes, where your appointment letter provides for it. What matters is the basis — basic salary or gross — because the difference is substantial. Check the exact clause before accepting the deduction.
Is my PF part of the F&F settlement?
No. Your EPF corpus is held by the EPFO, not your employer, and is claimed separately online. Transferring it to a new employer preserves continuity of service for pension purposes, which withdrawal does not.
What if my employer does not pay the settlement?
Follow up in writing with the HR head, citing your last working day and the amount due. If that fails, you can approach the labour commissioner in your state, or file a claim under the applicable wage payment law. Keep every email.