How long does a full and final settlement take?

Usually thirty to forty-five days after your last working day, and the exact limit depends on your state shops and establishments act. If it drags well past that, a written reminder citing the act tends to move things.

Can they hold my settlement until I return company property?

They can deduct the value of unreturned property from the settlement. Withholding the entire amount indefinitely over a laptop is a different thing, and is generally not defensible.

Is my relieving letter tied to the settlement?

They are separate documents but employers often issue them together. A background check usually wants the relieving letter, so ask for it explicitly rather than assuming it will arrive with the money.

Full and final settlement calculator

A full and final settlement is the last piece of arithmetic between you and an employer. Salary for days worked, leave encashment and gratuity go in one column. Notice shortfall and any recoveries go in the other.

It is worth doing this yourself before HR sends their version, because settlement statements are where forgotten deductions tend to appear.

Settlement due to you

₹1,60,000

Payable within the timeframe your state shops and establishments act sets

Salary for days worked: ₹72,000
Leave encashment: ₹88,000
Gratuity: ₹0
Total owed to you: ₹1,60,000
Less: recoveries: - ₹0
Net settlement: ₹1,60,000

Everything above is worked out in your browser. Nothing you type is sent to us or saved anywhere.

How this is worked out

The daily rate is monthly gross divided by thirty.
Final salary is that rate times the days you actually worked in your last month.
Leave encashment uses the same daily rate, though some employers use basic pay only. Check which applies to you.
Gratuity and recoveries are entered directly, because both depend on facts this calculator cannot see.

What this does not cover

Provident fund is not part of the settlement. It sits in your PF account and either transfers or is withdrawn separately.
Tax is deducted on the taxable parts of the settlement before it is paid.
Most state shops and establishments acts require settlement within a set number of days of the last working day, commonly thirty to forty-five.
Unreturned laptops and ID cards are a routine recovery line. Return them and get a receipt.

Questions people ask

How long does a full and final settlement take?: Usually thirty to forty-five days after your last working day, and the exact limit depends on your state shops and establishments act. If it drags well past that, a written reminder citing the act tends to move things.
Can they hold my settlement until I return company property?: They can deduct the value of unreturned property from the settlement. Withholding the entire amount indefinitely over a laptop is a different thing, and is generally not defensible.
Is my relieving letter tied to the settlement?: They are separate documents but employers often issue them together. A background check usually wants the relieving letter, so ask for it explicitly rather than assuming it will arrive with the money.

Where these figures come from

Rates and rules on this page were last checked against the source on 31 August 2026. Tax law changes; check the source before you rely on a number for a decision.

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