Business
Full & Final Settlement Calculator
Work out exactly what a leaving employee is owed: pro-rated salary for the final month, leave encashment, gratuity under the 15/26 formula with the rounding rule and the Rs 20 lakh cap, notice pay recovered or paid in lieu, reimbursements, advances, loans and asset recovery — then download a signable settlement statement as PDF and the working as a spreadsheet. Runs in your browser; nothing is uploaded.
Privacy
Your file never leaves your device. It is read and converted by your own browser, so nothing is uploaded, queued or logged — which is what makes this safe for a client’s books.
Tips
- Service is counted from the date of joining to the last working day inclusive, so 1 April 2019 to 31 March 2024 is exactly five years. The statement prints the years, months and days it counted, so a dispute is about a date rather than about arithmetic.
- Gratuity here follows the Payment of Gratuity Act wording: 15 ÷ 26 × last drawn Basic+DA × completed years, where a part year of more than six months counts as a whole year, capped at Rs 20,00,000. Five years of continuous service is the usual threshold; courts have read four years and 240 days as enough in some cases, and death or permanent disablement removes the threshold altogether — set eligibility by hand for those.
- Leave encashment is on Basic or on gross depending on your policy, and the per-day rate divides by 26 working days or by 30 calendar days — again, your policy. Both switches are on the page and both are printed on the statement, so the employee can see which was used.
- Notice can go three ways and the statement says which: the shortfall recovered from the employee, waived by the company, or paid to the employee in lieu when the company cuts the notice short. The per-day rate uses the same basis and divisor as leave encashment.
- Statutory rates and the professional tax slabs are in one clearly-marked constant at the top of this file with the date they were last checked. Rates move with the Budget and state PT tables change in between — check them before you pay.
- TDS is typed in, not computed: a leaver's final deduction depends on the whole year's income, the regime, what is exempt and what has already been deducted. Ask payroll or your accountant for the figure and enter it.
- The rupee sign cannot be drawn with the standard PDF fonts, so the statement prints "Rs". Every bank and auditor reads it the same way.
Frequently asked questions
How is gratuity worked out, exactly?
Fifteen days' wages for every completed year of service, where a day's wages is the last drawn Basic plus DA divided by 26 — so 15 ÷ 26 × (Basic+DA) × years. A part year of more than six months counts as a whole year; anything less is dropped. The total is capped at Rs 20,00,000. Gratuity received under the Act is exempt up to the least of the amount received, the formula figure and the cap, so an ex-gratia amount above the formula shows as taxable on the statement.
When does the money have to be paid?
Wages due on termination are payable within two working days of the last working day under section 5(2) of the Payment of Wages Act, 1936, and the Code on Wages, 2019 repeats that in section 17(2). Gratuity must be paid within 30 days of becoming payable, with simple interest after that, under sections 7(3) and 7(3A) of the Payment of Gratuity Act, 1972. Many employers in practice settle in 30 to 45 days. This is a note on what the statutes say, not legal advice — check the rules that apply in your state, and take advice if the settlement is disputed.
Can the company recover notice pay and hold the settlement until assets are returned?
Notice recovery is normally contractual and is shown here as a deduction with the number of days and the per-day rate printed. Whether an employer may set off an asset that was not returned, and whether it may withhold the whole settlement, depends on the contract and on state law — the statement itemises the recovery so that it can be challenged line by line rather than as a single unexplained number.
Does the employee's data leave my computer?
No. Every figure is computed in your browser and the PDF and the spreadsheet are written there. Salary, PAN and bank details never go anywhere.