What is Full and final settlement (F&F)?
Short answer
Full and final settlement is the last payment to an employee who leaves: pay for the days worked, leave encashment, gratuity and any bonus, less notice recovery, statutory deductions and dues.
What goes in
- Earnings: salary for the days worked in the last month, leave encashment, gratuity if eligible, bonus and other dues.
- Deductions: notice-period shortfall, PF, ESIC, professional tax, TDS and other recoveries.
- It can be paid only on or after the last working day.
In AdviHR
AdviHR builds the settlement from the approved last working day, leave balance, salary and notice served, and blocks payment before the last working day.
Frequently asked questions
When is the final settlement paid?
On or after the last working day, as the company’s policy and the applicable rules require.
Related terms
How sure are we? These figures use the same rules AdviHR payroll applies. We publish what has been checked against an official source and what has not, on the statutory accuracy page.
General information, not legal or tax advice. Confirm against the official notification and your adviser.