Full and Final Settlement Calculator
Build a full and final settlement: salary for days worked, leave encashment, gratuity and bonus against notice shortfall, loans and tax. Total deductions cannot exceed half of wages in any wage period.
Free · No sign-up · Nothing leaves your browser · Figures reviewed 22 September 2026
Your details
Used to value leave encashment. Falls back to gross if left blank.
Use the gratuity calculator if you do not have the figure.
Pending reimbursements, incentives, arrears.
Unreturned assets, excess leave taken, training bond.
Net payable to the employee
₹45,600
₹45,600 due, ₹0 recovered.
- Salary for days worked · 79%
- Leave encashment · 21%
Due to the employee
- Salary for days worked18 days of 30
- ₹36,000
- Leave encashment12 days at ₹800.00
- ₹9,600
- Gratuity
- ₹0
- Statutory or contractual bonus
- ₹0
- Other duesReimbursements, incentives, arrears
- ₹0
- Total earnings
- ₹45,600
Recovered
- Notice period shortfall
- ₹0
- Loan or advance outstanding
- ₹0
- Other recoveriesUnreturned assets, excess leave taken
- ₹0
- Tax deducted
- ₹0
- Total deductions
- ₹0
Total deductions from wages cannot exceed 50% of wages in any wage period — section 18(2) of the Code on Wages. A large recovery has to be spread, not taken in one settlement.
Gratuity is payable within 30 days of falling due, and interest runs on a late payment. It does not wait for the rest of the settlement to be agreed.
PF and ESI stop with the last working day, but the PF account stays live — it is transferred or withdrawn by the employee, not closed by the employer.
This is an estimate for planning, not tax or legal advice. Statutory rates and thresholds are date-effective and change by notification — confirm against the current one before you run payroll or file.
A full and final settlement is a statement, not a single number, and most disputes come from a line nobody explained rather than from arithmetic. This tool lays out both sides so the employee can see what is owed and what is being recovered.
Leave blank anything that does not apply. The two lines worth checking carefully are notice shortfall, which is recovered on gross rather than basic in most contracts, and gratuity, which has its own 30-day deadline and does not wait for the rest of the settlement to be agreed.
What has to be in a settlement
Salary for the days actually worked in the final month, encashment of the leave balance, gratuity where service qualifies, any bonus that has accrued, and anything else already earned — pending reimbursements, incentives, arrears from a revision.
Against that: recovery for notice not served, any outstanding loan or advance, the value of assets not returned, and tax.
The 50% rule on recoveries
Total deductions from wages cannot exceed 50% of wages in any wage period, under section 18(2) of the Code on Wages. A large recovery — a training bond, a long loan balance — cannot simply be taken out of the final settlement in one go.
Consent does not lift a statutory cap. Where the recovery exceeds the limit, it has to be spread or pursued separately, and an employer that withholds the whole settlement to force the point is on weak ground.
Gratuity does not wait
Gratuity is payable within 30 days of becoming payable, with an interest penalty for delay. It is not conditional on the employee signing off the rest of the settlement, on clearance being complete, or on assets being returned.
Provident fund also stops with the last working day, but the account itself stays live. It is transferred or withdrawn by the employee — not closed by the employer.
Frequently asked questions
- How long does a full and final settlement take?
- There is no single statutory deadline for the whole settlement, but gratuity has a hard 30-day limit with interest for delay, and wages for the final period fall under the Code on Wages payment timelines. Most policies commit to 30 to 45 days.
- Can an employer deduct the full notice period from the settlement?
- It can recover notice not served if the contract provides for it, but total deductions from wages are capped at 50% in any wage period. A recovery larger than that has to be spread or pursued outside payroll.
- Is notice pay recovery calculated on basic or gross?
- It follows the contract. Most Indian contracts specify gross or CTC, which makes the recovery substantially larger than a basic-only calculation. Read the clause before assuming.
- What if the settlement comes out negative?
- It means recoveries exceed dues — usually a notice shortfall or an outstanding loan. The employer can raise a demand, but it cannot take more than 50% of wages out of the wage period, and it still has to release gratuity within 30 days.
About this tool
Built by the ViniOffice team. Figures and rules last reviewed 22 September 2026 against the statutory reference this team maintains. Indian statutory rates are date-effective and change by notification — confirm against the current one before running payroll or filing. This is an estimate for planning, not tax or legal advice. Statutory rates and thresholds are date-effective and change by notification — confirm against the current one before you run payroll or file.
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