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Free exit dues tool

What does your full and final settlement look like?

Enter your last drawn salary, leave balance and notice details to get an itemised F&F statement with gratuity, leave encashment and tax exemptions, computed against current Indian rules.

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✓ Free tool ✓ No data stored ✓ FY 2025-26 rules
FnF Statement
5-year tenure example
FY 2025-26
Pending salary ₹80,000
Leave encashment ₹20,000
Gratuity ₹1,15,385
Notice shortfall -₹40,000
Net F&F payable ₹1,75,385

HOW IT WORKS

Three steps to your exit dues

1

Enter salary basis

Last drawn Basic + DA, monthly gross, and completed years of service. That's the foundation.

2

Add pending dues & recoveries

Unpaid salary, unused leave, bonus, reimbursements, loans, and notice period details, all on one form.

3

See your itemised F&F

Each component shown separately with sub-totals, tax-exempt portions and a clear net payable.

Calculate your F&F settlement

Every component itemised, leave encashment, gratuity, notice recoveries, and tax treatment.

Salary basis
₹
Used for gratuity, leave encashment, and notice buyout
₹
Used for unpaid month(s) of salary
years
4 yrs 240 days qualifies as 5 for gratuity
Pending dues
months
Current month + any prior unpaid months
days
Both conventions are common; check your offer letter or HR policy.
days
Days the employer owes (e.g. employer terminated without serving full notice)
days
Recovery from FnF when employee did not serve full notice
Indian standard: Basic + DA, unless contract specifies gross.
₹
Pro-rata statutory or performance bonus
₹
Approved expense claims (bill-supported = tax-free)
₹
Unclaimed leave travel allowance
₹
Recovered from FnF
Gratuity & tax
₹
Total leave-encashment exemption claimed at past exits

FnF Statement

Amounts payable
Pending salary1 month(s) × ₹80,000
₹80,000
Leave encashment15 days × ₹1,333 (Basic+DA / 30)
₹20,000
Gratuity(₹40,000 × 15 × 5) / 26
₹1,15,385
Total credits₹2,15,385
Recoveries & deductions
Notice shortfall recovery-₹40,000
TDS on taxable FnF (estimate)On ₹80,000 taxable; actual TDS depends on YTD income
-₹0
Total debits-₹40,000
Net F&F payable₹1,75,385

Tax treatment

Gratuity exempt, Sec 10(10), cap ₹20L₹1,15,385
Leave encashment exempt, Sec 10(10AA), lifetime cap ₹25L₹20,000
Pending salary, bonus, notice buyout, fully taxable₹80,000
Reimbursements (bill-supported) & LTA (claim), non-taxable₹0
Section 10(10AA) exemption of ₹25 lakh is a lifetime aggregate across all employers (CBDT Notification 31/2023, 24 May 2023). Gratuity exemption of ₹20 lakh is also a lifetime aggregate (Payment of Gratuity (Amendment) Act, 2018). TDS shown is an estimate computed on the taxable portion of FnF only, actual TDS depends on your full-year income and regime choice.

What goes into a full and final settlement

Pending salary

Salary for days worked in the final month, plus any prior unpaid months. Computed on monthly gross.

Leave encashment

Unused earned leave days × (Basic + DA) ÷ 30 (or 26). Exempt up to ₹25 lakh lifetime under Section 10(10AA).

Gratuity

(Basic + DA) × 15 × completed years ÷ 26, payable after 5 years. Exempt up to ₹20 lakh under Section 10(10).

Notice period adjustment

Buyout (employer pays) or shortfall (employer recovers). Indian standard: daily Basic + DA × days.

Bonus & reimbursements

Pro-rata statutory or performance bonus, plus pending expense claims and unclaimed LTA.

Recoveries

Loans and advances, asset value if not returned, training bond (if contractually clear) and notice shortfall.

Legal timeline for F&F payment

Multiple Indian laws set deadlines for the components of an F&F payout.

Component Statutory deadline Source
Unpaid wages Within 2 working days of termination Payment of Wages Act, s.5
Gratuity Within 30 days of becoming payable Payment of Gratuity Act, s.4(2)
PF transfer / withdrawal Within 20 days of employer attestation EPF Scheme, Para 72
Full settlement 30-45 days (industry standard) State Shops & Establishments Acts

Late gratuity attracts simple interest at 10% per annum. Late wages can attract penalties up to ₹20,000 plus repeat-offence consequences under the Payment of Wages Act.

Deeper reading

Detailed guides on each F&F component and the overall offboarding process.

GLOSSARY
Full and Final Settlement (FnF)
Complete walkthrough of FnF components, recoveries, and compliance.
GLOSSARY
Leave Encashment
Section 10(10AA) exemption and the four-test exemption rule.
GLOSSARY
Gratuity
Eligibility, formula, rounding rules and the ₹20 lakh cap.
GUIDE
Full and Final Settlement in India
Employer-side guide covering legal timelines, components, and tax treatment.
GUIDE
India Employee Offboarding Process
End-to-end offboarding playbook, resignation acceptance, clearances, F&F, relieving letter, Form 16.
OMNIVOO
Contract management
Capture notice terms, gratuity coverage and exit clauses at hiring so F&F reconciles cleanly months or years later.

Common questions

What is full and final settlement (F&F) in India? +
Full and final settlement is the complete reconciliation of dues an employer owes a departing employee, pending salary, leave encashment, gratuity, bonus, reimbursements, minus recoveries like notice shortfall and outstanding loans. It must be settled within 30-45 days of the last working day in most states.
How is leave encashment calculated in F&F? +
Leave encashment = (Basic + DA) ÷ divisor × unused earned leave days. Most companies use 30 (calendar days), though some use 26 (working days), both are acceptable. Up to ₹25 lakh of leave encashment at exit is tax-exempt under Section 10(10AA), per CBDT Notification 31/2023.
How is gratuity calculated for F&F? +
Gratuity = (last drawn Basic + DA) × 15 × completed years of service ÷ 26. It applies only to employees with 5+ years of continuous service (4 years 240 days qualifies under judicial interpretation). Up to ₹20 lakh is tax-exempt under Section 10(10).
Can the employer recover notice period from F&F? +
Yes, if the employment contract explicitly allows it. Recovery is computed as days unserved × daily Basic + DA (or gross, if the contract says so). Without a clear contractual clause, recovery may be challenged.
What is the legal deadline to pay F&F in India? +
The Payment of Wages Act requires unpaid wages within 2 working days of termination. The Payment of Gratuity Act requires gratuity within 30 days. Industry standard for the full F&F is 30-45 days from the last working day. Late gratuity attracts simple interest at 10% per annum.
Is leave encashment fully tax-free? +
At resignation or retirement for non-government employees, leave encashment is exempt up to a lifetime aggregate of ₹25 lakh under Section 10(10AA), subject to additional limits (10 months' average salary, cash equivalent of leave entitlement). Encashment during active employment is fully taxable.
Is this F&F calculator accurate? +
It uses the current statutory rules, Payment of Gratuity Act formula, ₹20 lakh gratuity cap, ₹25 lakh leave encashment cap, FY 2025-26 income tax slabs. Results are close estimates, and actual TDS depends on your full-year income and chosen tax regime. For exact figures, consult your HR or a CA.

Settle exits without spreadsheets

Omnivoo automates F&F end-to-end, gratuity, leave, TDS, Form 16, relieving letter, within statutory deadlines.

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