Full & final settlement calculator (India)
Calculate the complete FnF settlement dues for a departing restaurant employee. Enter basic salary, joining date, last working day, earned leave balance and advance outstanding. The calculator computes: pending salary for partial month, leave encashment (Basic+DA ÷ 26 per day), gratuity (if tenure ≥ 5 years under the Payment of Gratuity Act), notice pay (if employer waives) or notice recovery (if employee leaves without notice). Net payable after all deductions. Print the A4 FnF statement with signature blocks or export CSV. No signup.
What goes into a full and final settlement
A full and final settlement (FnF) is the complete payment made to an employee on separation — whether resignation, termination, or retirement. Under Indian labour law, the settlement must be completed within specific timelines (see below). Standard components:
- Pending salary — salary for the days worked in the last partial month. Computed as (monthly gross ÷ days in month) × days worked.
- Earned leave encashment — leave balance accumulated and not taken. Calculated as (Basic+DA ÷ 26) × leave days. Many states cap the maximum leave that can be encashed.
- Gratuity — payable only if tenure ≥ 5 years under the Payment of Gratuity Act 1972. Formula: (15 × Basic+DA × years of service) ÷ 26. Capped at ₹20L tax-exempt.
- Notice pay — if the employer asks the employee to leave immediately without serving notice, the employer pays salary for the notice period (pay in lieu of notice).
- Notice recovery — if the employee leaves without serving notice and the employer chooses to recover: salary for the unserved notice days is deducted from the settlement.
Settlement timelines under Indian law
The Payment of Wages Act requires wages for the final period to be paid by the 7th or 10th of the following month (depending on establishment size). The Payment of Gratuity Act requires gratuity to be paid within 30 days of the separation date. Some state-specific Shops & Establishments Acts require the full and final settlement to be processed within a shorter window — Maharashtra requires it within 2 days of the last working day for certain establishments.
Failure to pay gratuity on time attracts simple interest at 10% p.a. under Section 7(3A) of the Gratuity Act. Delay in settlement beyond the statutory period can also lead to a labour complaint at the local Labour Commissioner's office.
The 6-month rounding rule for gratuity
For gratuity calculation, if the fractional year is 6 months or more, it rounds up to the next full year. For example, an employee with 5 years and 7 months of service is treated as 6 years for the gratuity formula. An employee with 5 years and 4 months is treated as 5 years. This calculator applies the rounding rule automatically.
Where this fits
- Gratuity calculator — for bulk provision planning across your full workforce; this FnF tool handles gratuity as part of a complete settlement calculation for one employee
- Salary slip generator — generate the last month's salary slip alongside the FnF settlement statement; the gross salary on the last slip informs the pending-salary calculation here
- Overtime calculator — if the employee has unpaid overtime hours in the final month, compute the overtime amount first and add it as "other earnings" before generating the FnF
- Attendance register — the employee's last partial month attendance (days present) determines the pending salary; pull this from the muster roll before computing FnF
- P3 — Payroll pillar — all guides on restaurant payroll: EPF/ESI deductions, salary structure, advance management, bonus, gratuity, and compliance for Indian restaurant operators