Final settlement calculator
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 · Tax Year 2026–27 (FY 2026–27) tax slabs in engine · Methodology
Net settlement is only as complete as your line items (see accuracy card).
Required inputs
- One or more payout components (₹ amounts)
- Optional deductions (loan recovery, etc.)
Assumptions used by this estimate
- Net settlement = sum(credit lines) − sum(deduction lines).
- This does not infer leave encashment, gratuity, or statutory dues — you must add them explicitly as lines.
- Blank labels are OK for quick math, but naming lines improves auditability.
Worked example (same engine as live calculator)
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).
FAQ
Why is my net different from HR's statement?
HR statements include tax deductions, timing, recoveries, and components you may not have listed here.
Final settlement (FnF): check each component, recovery and deadline
A final-settlement statement may list salary due, eligible leave encashment, gratuity, bonus or reimbursements, as well as employer-claimed recoveries. This calculator only totals credit and deduction lines entered by the user; it does not establish statutory entitlement, legal enforceability or final tax.
Under section 17(2) of the Code on Wages, 2019, wages payable on resignation and certain other separations are generally due within two working days, subject to applicable exceptions or other-law deadlines. This is not a universal two-day deadline for gratuity, reimbursements, bonuses or the whole FnF package.
Under section 18, deductions from wages must be authorised by law. A claimed notice-period recovery is not automatically valid just because HR lists it or a contract mentions it. Ask for the written settlement breakup, notice-days calculation, salary basis, contract terms and legal basis for the claim.
Do not automatically net a disputed recovery against protected wages. Keep payment records and check gratuity under the Code on Social Security, 2020, including its revised statutory wage definition and any service exceptions.
- List every credit and proposed recovery separately.
- Verify any notice claim rather than treating it as settled.
- Separate wage payment deadlines from other component deadlines.
- Use the result as arithmetic, not a guaranteed bank credit.
Related guides
Spotted a wrong number or confusing label? Report a calculation error — every report gets checked against the engine.
What may appear in a full-and-final (FnF) statement
A final-settlement statement may include salary due for days worked, eligible earned-leave encashment, gratuity, bonus or variable pay due under your terms, reimbursements, and proposed recoveries. Each component has its own eligibility, tax and payment rules. A balance on an HR statement is not automatically the amount legally payable or the amount that will reach your bank account.
- Wages due for the final work period, based on actual service and applicable law.
- Leave encashment for eligible accrued leave, depending on applicable law and policy.
- Gratuity where applicable; the usual five-year rule has important exceptions, including qualifying fixed-term employment, death and disablement.
- Bonus, incentives and reimbursements if earned and payable under the relevant terms.
- Notice-pay adjustments, if contractually claimed or payable, subject to legal verification.
Check every recovery before treating it as a deduction
HR may list a claimed notice-period recovery, a salary advance, an outstanding loan, or an asset-related amount. A line appearing in the statement or appointment letter does not by itself prove that the amount is enforceable or may be deducted from wages. Section 18 of the Code on Wages, 2019 restricts deductions from wages to those authorised under the Code.
Ask for the written contract clause, the number of unserved notice days, the salary basis and daily-rate divisor used, and the legal basis for any proposed deduction. Keep statutory wages due separate from disputed contractual recovery claims.
Payment deadlines are component-specific
Under section 17(2) of the Code on Wages, 2019, wages payable on resignation, dismissal, retrenchment or closure-related unemployment are generally due within two working days, subject to the Code's exceptions and any applicable other-law deadline. That rule is about wages, not a blanket two-day deadline for every item in a full-and-final statement.
Gratuity, bonus, reimbursements, statutory-fund claims and disputed recoveries may follow different rules and processes. If payment is delayed, ask payroll to identify which components remain outstanding and why; escalate a wage or gratuity dispute through the appropriate labour authority where necessary.
Official sources: Code on Wages, 2019 (sections 17–18) and Ministry of Labour FAQs.
What this calculator actually does
The calculator only adds the credit amounts you enter and subtracts the deduction amounts you enter. It does not establish entitlements, validate a recovery, calculate statutory gratuity, determine tax withholding or verify payment deadlines. For Episode #15's fictional example, ₹90,000 of leave credit minus ₹70,000 of HR-claimed notice recovery gives a ₹20,000 balance of those two entries only, before any other credits, deductions or taxes.
Ask HR for an itemised statement and written explanation before accepting or contesting the total. Preserve your appointment letter, final payslip, earned leave record, Form 16 / tax records, and any correspondence about notice waiver.