Full & Final Settlement Calculator — F&F Amount on Resignation
Calculate your complete F&F settlement on resignation or termination — pending salary, leave encashment, gratuity, and notice pay adjustment. All in one place.
Net F&F Amount
₹2.48 L
Service: 7.0 years
Breakdown
Notice pay shortfall (deducted from F&F)
Understanding Full & Final Settlement in India
When you resign or are terminated from a job in India, your employer must settle all outstanding dues — this is called Full & Final (F&F) settlement. Unlike your last salary, F&F includes multiple components and can take 30-60 days to process.
F&F Calculation Formula
- Pending Salary = (Monthly salary / 26) × Working days in last month
- Leave Encashment = (Monthly salary / 26) × Pending earned leave days
- Gratuity = (15 × Basic+DA × Years of service) / 26 (if eligible)
- Notice Pay (credit) = (Daily salary) × Days of excess notice served
- Notice Pay (debit) = (Daily salary) × Days short of required notice
What F&F Does NOT Include
- EPF withdrawal — handled separately via EPFO Unified Portal
- EPS pension — available after 58 years of age or 10 years of EPF service
- Variable pay / performance bonus (depends on company policy)
- ESOPs / stock vesting (governed by separate ESOP agreement)
New Labour Code Impact on F&F
Under the Code on Social Security 2020 (effective November 2025), fixed-term contract employees are now eligible for gratuity after completing just 1 year of service. This significantly increases the F&F amount for contract workers who previously received no gratuity.
Frequently Asked Questions
What is included in Full & Final settlement in India?
A standard Full & Final (F&F) settlement includes: (1) Pending salary for days worked in the last month, (2) Leave encashment — payment for accumulated earned leaves not taken, (3) Gratuity — if service exceeds the eligibility threshold (5 years for permanent, 1 year for fixed-term under new Labour Code), (4) Notice pay adjustment — either additional pay if you served excess notice, or deduction if you fell short, (5) TDS on taxable portions, (6) PF settlement (handled separately via EPFO).
How many days does an employer take to process F&F settlement?
Under Indian labour law, F&F settlement should be processed within 30-45 days of the last working day. Under the new Labour Codes, employers are required to settle F&F within 2 working days for certain components. However, in practice, many companies take 30-60 days. If not settled within 45 days, employees can file a complaint with the Labour Commissioner.
Is gratuity part of F&F settlement?
Yes, gratuity is a component of F&F settlement if the employee has completed the minimum service period — 5 years for permanent employees, 1 year for fixed-term employees under the new Labour Code. Under the Payment of Gratuity Act, gratuity must be paid within 30 days of termination/resignation. It is separate from EPF, which is settled directly through the EPFO portal.
How is leave encashment calculated in F&F?
Leave encashment in F&F = (Monthly CTC / 26) × Number of pending earned leave days. The divisor 26 represents working days per month (excluding 4 Sundays). For example, with monthly salary of ₹80,000 and 15 pending leave days: Leave encashment = (80,000 / 26) × 15 = ₹46,154. Leave encashment received on retirement is tax-exempt up to ₹25 lakh; during employment separation, it is fully taxable.
What happens if notice period is not served?
If you do not serve the required notice period, the shortfall is deducted from your F&F settlement. The deduction equals (Daily salary × Number of days short). Daily salary is computed as monthly salary / 26. For example, if monthly salary is ₹80,000 and you are short by 30 days, the deduction is (80,000 / 26) × 30 = ₹92,308. This deduction is from your gross F&F — it is not a fine but a contractual salary recovery.