Build your full-and-final payout by listing credit components and deductions. The engine only sums what you enter — it does not guess components.
Reviewed July 2026 · FY 2026–27 (AY 2027–28) tax slabs in engine · Methodology
Net settlement is only as complete as your line items (see accuracy card).
Credits: leave encashment ₹1,20,000 + FnF bonus ₹50,000. Deductions: loan recovery ₹20,000. Net = ₹1,50,000 (labels are for your clarity; amounts drive the math).
HR statements include tax deductions, timing, recoveries, and components you may not have listed here.
Full and final settlement (FnF) is the net payment (or recovery) between you and your employer at the end of employment. It is calculated by summing everything the employer owes you, then subtracting anything you owe the employer. The result can be positive (a payment to you) or negative (a recovery from you, sometimes through adjustment against accrued salary or gratuity).
Typical FnF credit components include: last month's salary (for days worked), leave encashment of accumulated earned leave (subject to company policy and tax rules), gratuity if eligible (5+ years, covered employer), bonus arrears if applicable and unpaid, and notice pay received from employer if asked to leave early. Typical deductions include: notice period recovery if you left short (unserved notice days × per-day salary), salary advances or loan recoveries, and any asset recovery.
Timeline: the Payment of Wages Act and some state-specific shops and establishments acts prescribe timelines for final settlement — often within 30–60 days of separation. In practice, larger companies with payroll software can complete FnF faster; smaller companies sometimes delay. Form 16 Part A for the year of separation should reflect the FnF components, which matters when you file your ITR — particularly if gratuity, leave encashment, or unusually large FnF amounts are involved.
Verifying your FnF: ask HR for a detailed line-item breakup before signing any settlement letter. Common errors include: wrong number of leave days encashed, incorrect gratuity base (uses old salary rather than last drawn), wrong notice period recovery calculation (using working days instead of calendar days), and missing bonus arrears. Use this calculator to sanity-check the arithmetic before accepting the final figure.
Full and Final Settlement (F&F) is the complete payoff an employer makes when an employee exits — voluntary resignation, termination, or retirement. It is a single transaction that settles all outstanding financial obligations in both directions (employer owes employee, and employee may owe employer).
The typical components of F&F that the employer pays:
The employer can only recover amounts that are contractually specified or agreed in writing. Withholding salary beyond what is contractually permitted can be contested under relevant labor laws.
There is no single national law mandating a specific F&F payment timeline for all industries, but:
If F&F is delayed beyond 60 days, the employee can send a written communication to HR and the employee's manager requesting a timeline. Unresolved delays can be escalated to the labor commissioner's office in the relevant state, or through the EPFO grievance portal for PF-related disputes.
The most overlooked part of exit is document collection. Before your last day, ensure you have: