Full and final settlement calculator: everything owed on the way out.

1. Salary for the last month: gross ÷ days in the month × days worked, unless the monthly payroll already paid it.
2. Leave encashment: unused earned leave × Basic + DA ÷ 26.
3. Gratuity, after five years of continuous service: last Basic + DA × 15 ÷ 26 × years, a final part-year of six months or more counting as a year.
4. Notice: days not served × a day’s pay. Paid to the employee, on gross, when the employer ended it early; recovered from the employee, on Basic + DA, when they left early.
5. Add bonus and other dues; take off advances, loans and anything not returned.
6. Pay the wages within two working days of the last working day, and the rest within thirty days.

Date of joining

The first day of your continuous service with this employer. Service is counted from here.

It is on your appointment letter. If you moved between companies of the same group without a break, your employer may count from your first joining — ask HR.

Last working day

Your final day at work — the day your service ends. It is usually on your relieving letter.

Still working and want to know what you have built up? Pick today’s date.

Basic + DA

Your last month’s Basic salary plus Dearness Allowance (DA), if you get DA. Gratuity is worked out on these two only — not on CTC, gross or other allowances.

Both are separate lines on your payslip. Most private-sector payslips have no DA; then just enter Basic.

For example: Basic ₹38,000 and DA ₹2,000 → enter ₹40,000.

Monthly gross

The full month’s pay before deductions — Basic plus every allowance. The last month’s salary and notice paid by the employer are worked out on it.

How the job ended

Who ended it decides which way notice money goes. If the employee resigned, days of notice not served are recovered from them. If the employer ended it, days of notice not given are paid to them.

Notice period

The days of notice the appointment letter asks for — commonly 30, 60 or 90.

Notice served

The days actually worked between giving notice and the last working day. The shortfall is paid or recovered at a day’s pay — a month’s pay ÷ 30.

For example: A 60-day notice period with 30 served: 30 days are short.

Leave to encash

Unused earned (privilege) leave the employer pays out at exit, at Basic + DA ÷ 26 a day. Casual and sick leave usually lapse.

The leave balance on the last payslip or in the HR system. Enter 0 if the policy does not encash leave.

Last month already paid

Whether the last month’s salary went out with the regular payroll. If it did, it is left out of the settlement so it is not paid twice.

Bonus and other dues

Anything else still owed to the employee: statutory or performance bonus, incentives, unpaid reimbursements.

Recoveries

What the employee owes the company: salary advances, loans, and the value of a laptop or ID card not returned.

Qualifying service

How long you must work before gratuity is owed. The rule is five years of continuous service. Several High Courts have held that four years and 240 days is enough, and some employers follow that.

Choose “Five years” unless your employer’s policy says otherwise. The five-year rule does not apply if an employee dies or is disabled.

Covered by the Gratuity Act

The Payment of Gratuity Act applies to employers with 10 or more employees. A covered employer counts a month as 26 working days and rounds six months or more up to a full year. One that is not covered pays under its own policy, usually on a 30-day month.

Ten or more people work there? Choose Yes.

The two deadlines

Since 21 November 2025 the Code on Wages wants wages paid within two working days of the last working day. Gratuity is due within thirty days, and leave encashment and notice pay are usually paid with it.

Employer’s name

The company’s legal name — the one on its PF, ESI or GST registration — printed at the top of the statement.

For example: Sharma Traders Pvt Ltd

Employer’s address

The registered or office address, printed under the name. Leave it empty if the letterhead already carries it.

Employee’s name

The leaver’s full name as it is on the payroll. The acknowledgement at the foot of the statement is made in this name.

Employee code

The number the company knows the employee by. A wage slip has to carry it, with the name and designation.

Designation

The job title the employee held on the last working day.

Statement date

The day the statement is issued. It is usually the last working day, and never later than the date the money is due.

Acknowledgement

The line the employee signs to say the amount was received. Keep one signed copy — it is the record that the settlement was paid.

Pay first, then ask for the signature. Nobody should sign for money they have not yet received.

• Gratuity calculator

  Gratuity = last drawn monthly Basic + DA × 15 ÷ 26 × years of service. It is payable after five years of continuous service, a final part-year of six months or more counts as a full year, and it is tax-free up to ₹20,00,000.

• Relieving letter format

  A relieving letter accepts the employee’s resignation, by its date, and relieves them of their duties from the close of business on their last working day. It lists their particulars and the reason for leaving, and says the settlement follows separately. Fill yours in and download it as a PDF.

• Experience letter format

  An experience letter certifies that a person was employed with the company from their date of joining until their last working day, with their last designation and every role they held. It says nothing about pay or why they left. Fill yours in and download it as a PDF.

Facto Lite settles every exit from the employee’s own record — the last month from the payroll run, and gratuity, leave and notice beside it, each with its due date. See Payroll.