Full & Final Settlement Calculator
Estimate your full and final settlement in India: last salary, leave encashment, gratuity, less notice recovery.
About the Full & Final Settlement Calculator
When you leave a job in India, the full and final (F&F) settlement pays salary for days worked, encashment of unused earned leave (commonly basic + DA ÷ 30 per day; company policy decides which leave can be encashed), gratuity if eligible, and any bonus, less recovery for unserved notice and other dues.
Under the Payment of Gratuity Act, gratuity is 15/26 × last basic + DA × completed years (a part year over 6 months counts as a full year), payable after 5 years of continuous service, capped at ₹20 lakh. Under the new labour codes, fixed-term employees qualify after 1 year. Employers should pay F&F within the time set by law or policy (the Code on Wages requires within two working days of exit).
The formula
F&F = salary for days worked + leave encashment + gratuity + bonus − notice recovery − deductions
Worked example
Example: Full & final settlement = ₹2,72,010
- Inputs: Monthly gross salary: ₹88,000; Monthly basic + DA: ₹44,000; Days worked in the last month: 17; Days in that month: 30; Unused earned leave to encash: 13 days; Years of continuous service: 7; Plus months: 8; Bonus / incentives due: ₹0; Unserved notice days to recover: 0 days; Other deductions (loans, assets): ₹0.
- Formula: F&F = salary for days worked + leave encashment + gratuity + bonus − notice recovery − deductions
- Result: Full & final settlement = ₹2,72,010
Things to keep in mind
- Company policy and contract terms vary; this is an estimate before tax.
Questions people ask
Is gratuity taxable?
For private employees, up to ₹20 lakh in a lifetime is exempt under the Act.
Is leave encashment taxed?
On retirement or resignation, up to ₹25 lakh is exempt for non-government employees.
Sources
The rules and rates this calculator uses come from the official pages below. Its results are estimates, not an official determination, and rules change, so check the latest figures there before you act on them.