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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
Add unpaid salary, leave encashment, gratuity and other dues, then subtract notice recovery and other recoveries, to estimate a leaver's settlement before tax.
This full and final settlement calculator builds an estimate from the components you enter. It is not a payslip: TDS is not computed, and the figures for leave, bonus and recoveries come from your own policy and records.
Gratuity is worked out using the Payment of Gratuity Act formula, and only when the five-year service condition is met.
Enter your figures, then press Calculate
Your 14 inputs become a full breakdown, with every step of the working shown beneath the headline figures.
A settlement is a list of amounts owed each way. The method adds what the employer owes, subtracts what the employee owes, and keeps tax out of it.
F&F = Unpaid salary + Leave encashment + Gratuity (if eligible) + Other dues − Notice recovery − Other recoveries
Monthly gross divided by the days in the month (or your fixed divisor), times days worked but not paid.
Encashable leave days times the daily wage your policy specifies. Whether basic or gross is used, and the divisor, are policy choices.
Fifteen twenty-sixths of last drawn basic and DA per year counted, once five years of continuous service are complete, with a part-year over six months counted as a year and the ₹20,00,000 maximum applied (Payment of Gratuity Act 1972, s.4).
Bonus, pending reimbursements and any other amounts owed.
Notice shortfall at the per-day salary, where the contract allows it and it has not been waived, plus advances and other recoveries.
What this does not include
Asked often enough about this calculation to be worth answering beside it.
No. The figure is before tax. TDS on a settlement depends on the employee's regime, declarations and the rest of the year's income, and should be computed in payroll.
When the employee has completed five years of continuous service, subject to the exceptions in the Act. The calculator includes it only when the completed years entered are five or more.
Your leave policy decides. Many policies use basic (and DA); some use gross. Choose the option that matches your policy and set the divisor it uses.
Only where the appointment terms provide for it and the employer has not waived the shortfall. Enter zero notice days if no recovery applies.
Pending reimbursements, bonus or incentive due under the plan, and recoveries for advances or company assets not returned. PF is settled separately through the EPFO and is not part of this figure.
A calculator applies a rule to figures you type in. A payroll run applies it to your actual employee record, your locations and your verified declarations, which is where Professional Tax, LWF and TDS also resolve.
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