Full and Final Settlement Calculator

Add everything the employer owes as at the last working day — unpaid salary for days worked, payout of the unused leave or PTO balance, any statutory exit payment, and pending bonus or reimbursement. Then subtract recoveries such as advances, unreturned assets and tax. What remains is the net settlement. The statutory exit payment is the part that changes from country to country, which is why this calculator asks for the country before anything else.

Under the Payment of Gratuity Act the amount is 15 days of Basic + DA for every completed year of service, using a 26-day month: 15 ÷ 26 × (Basic + DA) × years. It becomes payable only after five years of continuous service, a part year over six months counts as a full year, and it is tax-exempt up to ₹20 lakh. Below five years no gratuity is due.

There is no federal requirement to pay severance — it is a matter of contract or company plan. Accrued PTO is different: some states, including California, Colorado and Massachusetts, treat it as earned wages that must be paid out, while others leave it to company policy. The deadline for the final paycheck is also state law, ranging from immediately on termination to the next regular payday. This calculator therefore treats severance as an input rather than a formula.

It needs at least two years of continuous service. For each year worked you get half a week of pay for years worked under age 22, one week between 22 and 40, and one and a half weeks from 41 onward. Only the most recent 20 years count, and weekly pay is capped at £719 for 2025/26. The first £30,000 of redundancy pay is free of tax and National Insurance. Notice can be paid as PILON instead of worked, which is a separate figure.

After one year of service the entitlement is 21 days of basic pay for each of the first five years, then 30 days of basic pay for each year beyond five. The total is capped at two years of the employee total pay. It is calculated on basic salary, not on the full package with allowances, and there is no personal income tax to deduct.

In India and many other countries, yes — a shortfall is usually recovered at the gross per-day rate, though some contracts specify Basic only. In the United States deductions from a final paycheck are restricted under the FLSA and by state law, so this calculator does not apply a notice recovery there. In the UK an employer normally pays notice out rather than recovering it. Always check the appointment letter against local law.

Usually in part. Unpaid salary, bonus and leave encashment are almost always taxable as employment income. Statutory exit payments are often treated more favourably: Indian gratuity is exempt up to ₹20 lakh, and the first £30,000 of UK redundancy pay is tax-free. The Gulf states levy no personal income tax at all. Enter whatever your payroll actually withholds in the tax field.

It varies widely. Indian employers commonly settle within 30 to 45 days, although the Payment of Wages Act requires wages due on termination to be paid by the second working day. US deadlines are set state by state, from the final day of work to the next scheduled payday. UK employers normally pay on the next payroll run after the leaving date. Check the contract and local statute, because the promise in an appointment letter is not always the legal minimum.

It means recoveries exceed the dues — typically a long notice shortfall or an outstanding advance set against a short final month. The figure is shown in red, and it means the employee owes the employer that amount rather than the other way round.