Full & Final Settlement Calculator India

How to Use the F&F Calculator

Start with the unpaid portion of your final payroll. Enter the monthly salary basis your employer uses for salary proration and the number of final-payroll days that remain unpaid. If your organisation uses 26 days, actual calendar days or another method instead of 30, open Payroll calculation settings and select the matching divisor.

Then add only the settlement components that apply. Leave encashment, gratuity and notice recovery are intentionally entered as amounts rather than being recalculated inside this page. That keeps the F&F Calculator focused on combining verified figures instead of duplicating specialist payroll and employment-law calculators.

What Is Full & Final Settlement?

Full & Final settlement, usually called F&F or FnF, is the process of settling outstanding financial dues between an employer and an employee when employment ends. It can include unpaid salary, eligible leave encashment, gratuity, pending incentive or bonus amounts and approved reimbursements, less valid recoveries or payroll deductions.

Not every employee has every component. Someone whose salary and leave have already been fully settled may only have gratuity due. Another employee may have final salary plus a notice-period recovery. The calculator therefore works as an aggregator rather than assuming a standard package of exit benefits.

Full & Final Settlement Formula

The formula is useful as a settlement framework, not as a substitute for the individual rules governing every component. The result is only as reliable as the inputs taken from payroll records, the leave statement, gratuity calculation, notice terms and approved deductions.

What Is Included in F&F Settlement?

Amounts due can include the unpaid final salary, eligible unused-leave payout, gratuity where payable, earned bonus or incentives, arrears and approved expense reimbursements. Recoveries can include contract-based notice recovery, an outstanding salary advance or employer loan, final payroll deductions and other deductions that have a valid basis.

Accumulated EPF is different. It is generally held and administered through EPFO and is transferred or claimed separately rather than added as another employer cash line in the F&F statement.

How Final Unpaid Salary Is Calculated

The calculator uses Monthly Salary ÷ Payroll Divisor × Unpaid Payable Days. “Unpaid” matters. If the employer has already processed salary up to a particular date, do not add those same days again. Enter only the remaining final-payroll days for which salary is still due.

For example, ₹80,000 ÷ 30 × 15 gives a final salary estimate of ₹40,000. If zero final-salary days remain, zero is a valid input. The employee may still have gratuity, leave encashment, reimbursements or other amounts due.

Should Final Salary Be Divided by 26 or 30?

There is no reason to force one payroll divisor on every organisation. Monthly salary may be prorated using 30 days, 26 working days, actual calendar days or another documented payroll method. CentralPortal therefore makes the divisor configurable rather than describing either 26 or 30 as universally mandatory.

If the settlement relates to a historical February or a 31-day month and the employer uses actual calendar days, choose Custom and enter the employer's actual divisor. The calculator does not use the current month automatically because that could be unrelated to the exit payroll period.

Leave Encashment in F&F Settlement

Only leave that is eligible under the applicable policy, contract, service rules or law should be added. Earned Leave, Privilege Leave, Casual Leave and Sick Leave should not be assumed to have identical carry-forward or encashment treatment. Need to calculate unused leave before adding it to the settlement? Use the Leave Encashment Calculator.

Gratuity in Full & Final Settlement

Gratuity is a separate statutory or contractual benefit, not a generic percentage that should be guessed inside an F&F form. Current gratuity provisions operate under the Code on Social Security, 2020 after implementation of the Labour Codes. The amount can depend on statutory wages, continuous service, fixed-term status, special categories, service rounding, the statutory ceiling and better contractual terms.

Check statutory gratuity separately with the Gratuity Calculator, then enter the resulting amount here.

Bonus, Incentives and Arrears

Add only amounts the employer has confirmed as earned or payable. These can include variable pay, sales incentive, contractual bonus, approved salary arrears or another payroll amount. Employment ending does not automatically make every annual incentive fully payable, and this page does not try to determine statutory bonus eligibility.

Reimbursements and Other Dues

Approved travel claims, business expenses and other confirmed reimbursements can be entered separately from salary. Keeping them separate is useful because their payroll and tax treatment can differ from salary. Do not assume every reimbursement is tax-free; the nature of the expense, documentation and tax rules can matter.

Notice Period Recovery in F&F

Notice recovery should come from the employment contract, HR policy or an employer-approved settlement calculation. It should not be inferred automatically from salary or the last working date. The relevant salary base might be Basic, Basic + DA, Gross salary or another defined amount, and the employer may use 26 days, 30 days or another divisor.

If your settlement includes notice recovery, calculate it first with the Notice Pay Calculator and enter the confirmed or estimated amount here.

Loans, Advances and Other Deductions

An outstanding employer loan or salary advance may be recoverable where applicable. Other wage deductions are regulated. Section 18 of the Code on Wages, 2019 says deductions from wages must be authorised under the Code and generally limits total authorised deductions in a wage period to 50% of wages, with excess recovery dealt with in the prescribed manner.

That 50% rule should not be applied blindly to the entire F&F total. A settlement can contain non-wage components and separate liabilities. The calculator therefore does not impose a hard 50% cap on Gross Dues; it simply aggregates the valid amounts you enter.

What Does the Two-Working-Day Rule Actually Cover?

Section 17(2) of the Code on Wages, 2019 provides that where an employee is removed, dismissed, retrenched or resigns, wages payable to that employee are to be paid within two working days, subject to the Code and any other applicable legal time limit. The four Labour Codes became effective on 21 November 2025.

This is a wage-payment rule. It is inaccurate to convert it into the blanket statement that every component of a complete F&F settlement must always be paid within two working days. Gratuity, reimbursements, variable incentive, leave-policy payments and PF processes can have different legal or contractual treatment.

How Long Can Gratuity Take?

Section 56 of the Code on Social Security, 2020 has its own rule: the employer is required to arrange payment of gratuity within 30 days from the date it becomes payable. If gratuity is not paid within the statutory period, simple interest can apply subject to the conditions in the section.

Does the Entire F&F Have to Be Paid Within Two Days?

No single two-day statement safely describes every possible component. Wages have the Section 17 rule. Gratuity has the separate Section 56 framework. Leave encashment, bonus, variable pay, reimbursements and contractual amounts can depend on the nature of the payment, applicable law, employment terms and the settlement process.

Likewise, saying that “F&F legally takes 30–45 days” would also be misleading. An employer's internal processing cycle is not the same thing as a universal statutory deadline.

Is EPF Included in F&F?

Your accumulated EPF balance is normally transferred or claimed separately through EPFO rather than added to the employer's F&F payout. EPFO provides separate transfer and final-settlement claim processes. A final-month employee PF contribution can still appear under Payroll / Statutory Deductions because that is part of payroll, not a payout of the entire PF account balance.

How TDS Works in Full & Final Settlement

The calculator does not try to compute final income tax. Salary, bonus or incentives can be salary income, while gratuity and leave encashment have separate exemption or deduction rules and genuine reimbursements can have different treatment. Actual TDS depends on full-year income, tax regime, earlier withholding and the nature of each payment.

Enter the payroll or statutory deduction actually shown or estimated by payroll. If that field is zero, the result means “net F&F based on entered deductions,” not guaranteed post-tax take-home.

Can Full & Final Settlement Be Negative?

Yes, the arithmetic can be negative when valid recoveries exceed amounts payable. For example, ₹40,000 of dues minus ₹60,000 of entered recoveries leaves a ₹20,000 shortfall. The calculator presents this as “Estimated Amount Recoverable” rather than displaying a bare negative payout.

A negative calculator result does not prove that the employee legally owes the amount. Notice recovery, loans and other deductions still require an appropriate contractual or statutory basis and any applicable process.

Documents to Check With Your F&F Statement

F&F Component and Timeline Reference

Common Full & Final Settlement Mistakes

• Counting final salary that was already paid.
• Using annual CTC for final salary without checking the payroll basis.
• Assuming every employer must use a 30-day divisor.
• Assuming every employer must use 26 working days.
• Rebuilding leave encashment using one fixed Basic + DA formula without checking policy.
• Using stale gratuity rules or treating old law references as the only current framework.
• Automatically calculating notice recovery without checking the contract.
• Adding the employee's entire EPF balance as employer F&F cash.
• Assuming all reimbursements are taxable or all are tax-free.
• Trying to calculate a full year's income tax from the small F&F form.
• Claiming the entire F&F is universally due within two working days.
• Confusing the wage-payment rule with the gratuity-payment timeline.
• Treating every “other deduction” as valid without authorisation.
• Assuming a negative calculator result automatically proves a legal debt.