Full and Final Settlement Calculator

Wages must be paid within two working days. Section 17(2) of the Code on Wages, 2019, in force since 21 November 2025, says the wages of an employee who is removed, dismissed, retrenched or resigns must be paid within two working days of that event. Gratuity has its own limit: within 30 days of becoming payable, under section 56(3) of the Code on Social Security, 2020.

Yes, after one year of service under the contract. Section 2(o) of the Industrial Relations Code, 2020 makes a fixed-term employee eligible for gratuity on one year of service, and section 53 of the Code on Social Security, 2020 says it is paid pro rata. The Labour Ministry’s FAQs of 16 March 2026 confirm the one-year rule.

15 days of wages for every completed year of service, with a part year over six months counted as a full year. For a monthly-paid employee, 15 days of wages is the last monthly wages × 15 ÷ 26 (section 53, Code on Social Security, 2020). Permanent employees need 5 years of continuous service, except on death or disablement, and the statutory amount is capped at ₹20 lakh.

Advances, loans and loss of goods entrusted to the employee are allowed deductions under section 18(2) of the Code on Wages, and in a wage period total deductions cannot exceed 50% of wages (section 18(3)). Notice pay recovery depends on the employment contract. The calculator lets you enter or waive each recovery.

Basic pay, dearness allowance and retaining allowance, but if excluded allowances are more than half of total pay, the excess is added back. This 50% rule is in section 2(88) of the Code on Social Security, 2020, and the Labour Ministry’s FAQs say gratuity on the revised wages applies from 21 November 2025.

No. The leave policy, bonus payout and notice buy-out come from the appointment letter and company policy, so the calculator asks you for the basis (Basic + DA or gross, 30 or 26 days) and the amounts instead of assuming them.