Full & Final Settlement Calculator

Full & Final settlement is the process of settling all financial dues between employer and employee upon separation. It includes salary for days worked, leave encashment, gratuity (if eligible), minus any deductions for unserved notice period, advances, or damages.

Notice pay is deducted when an employee leaves without serving the full notice period. It is calculated as (Monthly CTC / 30) × number of unserved notice days. For example, if your monthly CTC is ₹1,00,000 and you have 10 unserved days, the deduction would be ₹33,333.

Leave encashment is calculated at the daily basic rate: (Monthly Basic Salary / 30) × number of unused leave days. Only earned/privileged leave is typically encashable. Casual and sick leave are usually 'use-it-or-lose-it'.

Under the Payment of Gratuity Act, 1972, an employee is eligible for gratuity after completing 5 years of continuous service. The formula is: (Last drawn Basic + DA) × 15/26 × years of service. Years over 6 months are rounded up.

Yes, by serving the full notice period as per your employment contract. Some employers may also waive the notice period at their discretion. If you have available leave balance, you may be able to use it to cover part of the notice period (check your company policy).

After resignation, you can either transfer your EPF to your new employer (most common), withdraw it (if unemployed for 2+ months), or leave it with EPFO. The employee PF contribution and employer share remain yours.

Most Indian companies settle FNF within 30-45 days of the last working day. Some states mandate settlement within 7-30 days under their Shops & Establishments Acts. The timeline depends on company policy and clearance formalities.

SignHR automates the entire offboarding process — resignation tracking, clearance checklists, asset return, FNF calculation, gratuity computation, and final settlement. It ensures nothing slips through the cracks and generates compliance-ready reports.