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Full & Final Settlement Calculator
Full and final settlement = pending salary + leave encashment + gratuity + bonus and other dues, minus recoveries such as unserved notice period and advances.
Add up everything owed to an employee who is leaving and subtract what the employee owes, to get the full and final settlement.
What you enter
- Monthly salary
- Days in the month used as divisor
- Unpaid days worked in the last month
- Leave days to encash
- Gratuity payable
- Bonus and other dues
- Notice period days not served
- Advances and other recoveries
How the Full & Final Settlement Calculator works
- Earnings = pending salary + leave encashment + gratuity + bonus and other dues.
- Pending salary and leave are paid at monthly salary ÷ divisor per day.
- Recoveries = notice period not served (at the same per-day rate) + advances and other recoveries.
- Full and final settlement = earnings − recoveries.
Worked example: Monthly salary ₹45,000, divisor 30, 18 unpaid days, 10 leave days
- Per-day rate = 45,000 ÷ 30 = ₹1,500.
- Pending salary = 1,500 × 18 = ₹27,000. Leave encashment = 1,500 × 10 = ₹15,000.
- No gratuity, bonus, notice shortfall or recoveries, so total earnings = ₹42,000 and recoveries = ₹0.
- Full and final settlement = ₹42,000.
Assumptions to keep in mind
- Statutory deductions such as PF, ESI and TDS on the final salary are not applied here, so add any you need to the recoveries.
- Notice-pay recovery depends on the employment contract.
Figures last reviewed November 2026. Rates and limits change, so check the official sources below.
Frequently asked questions
What is included in full and final settlement?
Salary for days worked but unpaid, encashment of unused leave, gratuity if eligible, bonus or other dues, less any amounts the employee owes.
How soon should full and final settlement be paid?
Timelines are set by law and company policy and changed under the Labour Codes. Check the current rule and the employment contract.
Does this include PF, ESI and TDS on the final salary?
No. Add any such amounts to the recoveries field.
Sources
Let Lumos HRMS do this for every employee
Lumos HRMS calculates attendance-based pay with PF, ESI and other statutory deductions for the whole team. See payroll
More free HR tools
- Gratuity Calculator — Estimate gratuity from last drawn basic + DA and years of service.
- PF (EPF) Calculator — Split provident fund contributions between employee, EPF and EPS.
- ESIC Calculator — Employee and employer ESI contribution from monthly gross wages.
- TDS on Salary Calculator — Estimate yearly income tax and monthly TDS under the new tax regime.
- In-hand Salary Calculator — Take-home pay from monthly gross after PF, ESI, tax and other deductions.
- Leave Encashment Calculator — Value of unused leave days from monthly salary and a day divisor.