Full & Final Settlement
All active FnF cases · Pipeline view · FY 2025–26
Active FnF Cases
4
In progress
Overdue (> 45 days)
2
Ananya P · Rohan K.
Completed (FY)
11
₹28.4L settled
Pending Approval
1
₹2.84L awaiting CFO
Avg Settlement Time
38 days
Target: 45 days
Active Cases
AP
Ananya Patil
⚠ 52 days · Overdue
Blocked at: Notice period waiver — awaiting manager approval
Salary + LOP
₹41,667
Leave Encash.
₹18,400
Gratuity
₹0
Notice Recovery
Waiver pending
Estimated Net
₹60,067
VN
Vikram Nair
⚠ 48 days · Overdue
Blocked at: CFO approval for gratuity payout ₹2.84L
Salary + LOP
₹16,667
Leave Encash.
₹32,000
Gratuity
₹2,84,000
Notice Recovery
Full notice served
Estimated Net
₹3,32,667
PS
Priya Shah
In progress · Day 12
Current step: Salary & LOP computation in progress
Salary + LOP
In progress
Leave Encash.
Pending
Gratuity
Pending
Notice
Pending
LWD
20 Jun 2025
KJ
Kiran Joshi
Termination
Day 3
Current: Salary computation · Note: Termination — no notice period payout
Exit Type
Termination
Gratuity eligible?
Check tenure
Notice period
Not applicable
LWD
19 Jun 2025
FY 2025–26 FnF Summary
Total cases initiated15
Completed11
Active4
Total salary settled₹8.2L
Total gratuity paid₹11.4L
Total leave encashed₹4.8L
Total FnF Paid Out₹28.4L
Recently Completed
SM
Sneha Mehta
Settled 14 Jun · ₹1,82,400
RK
Rahul Kumar
Settled 02 Jun · ₹3,24,800
NJ
Nisha Jain
Settled 28 May · ₹2,10,000
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Enter exit details · Set key dates · System will compute all dues automatically
Employee & Exit Details
This information governs all FnF computations
Employee
Department
HR & Admin
Date of Joining
12 Mar 2019
Years of Service
6 yrs 3 mos
Current Gross Salary
₹90,000/mo
Basic Salary
₹36,000/mo
Leave Balance (EL)
22 days
Exit Information
days (per contract)
days
⚠ 3 days short
Within 45 days of LWD (statutory)
Exit Reason & Notes
Org policy defines which FnF components run by default (gratuity, encashment, notice, loans, TDS, PF forms). Edit under
Payroll Configuration → Full & Final.
This case — computed components
Read-only preview from policy + exit data (override only via formal exception workflow)
Pro-rata salary
EL encashment (22 d)
Gratuity (eligible)
Notice recovery (3 d short)
Loan recovery ₹15k
TDS on FnF
PF Form 19 / 13
Exception: disable a line item only with HR Controller approval — audit trail required.
Quick Estimate
Pro-rata salary₹60,000
Leave encashment (22 days)₹28,800
Gratuity (6 yrs 3 mo)₹2,07,692
Notice recovery (3 days)−₹9,000
Loan recovery−₹15,000
TDS on FnF (est.)−₹12,000
Estimated Net
₹2,60,492
Statutory Timelines
• FnF must be settled within 45 days of LWD (Payment of Wages Act).
• Gratuity must be paid within 30 days of LWD (Payment of Gratuity Act).
• Delay in gratuity: interest at 10% p.a. from due date.
• Form 16 for FnF year to be issued with annual Form 16.
Salary & LOP — Priya Shah
Pro-rata salary computation for last month · LOP for working days only · All components
✓
Initiated
08 Jun
→
Salary & LOP
In progress
3
Leave Encash.
4
Gratuity
5
Notice Period
6
Dues & Ded.
7
Approval
8
Settled
Working Days & Pro-rate Basis
Pro-rate factor = 20 ÷ 30 = 0.6667
Monthly gross (₹90,000) × 0.6667 = ₹60,000
Monthly gross (₹90,000) × 0.6667 = ₹60,000
Component-wise Computation
₹60,000
Basic Salary
₹36,000 × 20/30 days
₹24,000
House Rent Allowance
₹18,000 × 20/30 · Pro-rated
₹12,000
Special Allowance
₹28,800 × 20/30 · Pro-rated
₹19,200
Telephone Reimbursement
₹1,000 × 20/30 · Pro-rated
₹667
Leave Travel Allowance
₹2,083 × 20/30 · Pro-rated
₹1,389
Meal Vouchers
₹2,200 — Not pro-rated (flexi policy)
₹2,200
Variable Pay — Jun outstanding
No variable declared for Q1
₹0
Pro-rata Gross (Earnings)
₹59,456
Deductions (pro-rated)
Employee PF (12% of basic)
12% × ₹24,000
−₹2,880
Professional Tax
Applicable for 20 days
−₹133
Income Tax (TDS on salary component)
Will be computed in final TDS step
Pending
Net (Salary Component Only)
₹56,443
Component Pro-rate Rules
Basic, HRA, Special Allowance
Pro-rated (days worked ÷ calendar days)
Meal Vouchers
Not pro-rated — flexi component
Leave Travel Allowance
Pro-rated for partial month
Proration Method
Leave Encashment — Priya Shah
Earned Leave balance on LWD · Daily rate computation · Tax treatment
Leave Balance on LWD
Opening Balance
28.0
days (01 Apr 2025)
Accrued (Apr–Jun)
3.75
1.25 days × 3 months
Used (Apr–Jun)
9.75
as on LWD
Balance on LWD
22.0
encashable days
ℹ Leave encashment at separation is fully taxable for private sector employees. The Sec 10(10AA) exemption (up to ₹25 lakh) applies only to government employees. Tax will be computed in the TDS step.
Daily Rate & Encashment Amount
₹28,800
Daily rate = ₹36,000 ÷ 26 = ₹1,384.62
Leave encashment = ₹1,384.62 × 22 days = ₹30,462
Leave encashment = ₹1,384.62 × 22 days = ₹30,462
Leave encashment gross₹30,462
Tax treatmentFully taxable (private sector)
Leave Balance Summary
Only Earned Leave is encashable at exit
Earned Leave (EL)22.0 days
Casual Leave (CL)Lapses — 3 days
Sick Leave (SL)Lapses — 1.5 days
Comp-OffLapses — 1.0 day
⚠ CL, SL and Comp-Off balances lapse on exit — not encashable per policy.
Tax on Leave Encashment
• Private sector: Fully taxable as salary income.
• Govt employees: Exempt up to ₹25 lakh under Sec 10(10AA).
• Added to taxable income in year of payment.
• TDS deducted on total FnF payout including encashment.
Gratuity Computation — Priya Shah
Payment of Gratuity Act 1972 · Eligibility check · Formula computation · Tax exemption limit
Eligibility Verification
Date of Joining
From employee master
12 Mar 2019
Last Working Day (LWD)
20 Jun 2025
Total years of service
Exact: 6 years 3 months 8 days
6.27 years
Rounds to (for gratuity)
"4 year 240 day" rule → fraction ≥ 6 months rounds up
6 completed years
Minimum service eligibility
5 continuous years required (Act Sec 4)
✓ 6 years ≥ 5 years
Exit type eligible?
Resignation: eligible · Termination for misconduct: not eligible
✓ Resignation eligible
ℹ 4 Year 240 Days Rule (Sec 2A): A fraction of a year is counted as a full year if the employee has worked more than 6 months (≥ 240 days for 5-day week establishments). Priya Shah's service: 6 years 3 months → last fraction is 3 months (90 days) — this is LESS than 6 months, so it does NOT round up. Gratuity is computed for 6 completed years only.
Gratuity Formula Computation
₹2,07,692
As on LWD · Basic only (DA=0 for this employee)
Always 26 (Act mandated)
Formula: (Last Basic+DA ÷ 26) × 15 × Completed Years
= (₹36,000 ÷ 26) × 15 × 6
= ₹1,384.62 × 15 × 6
= ₹1,24,615 × 2 = ₹2,07,692
= (₹36,000 ÷ 26) × 15 × 6
= ₹1,384.62 × 15 × 6
= ₹1,24,615 × 2 = ₹2,07,692
Tax Exemption (Sec 10(10))
Gratuity amount payable
₹2,07,692
Maximum tax-free limit (Sec 10(10))
₹20,00,000 for private sector
₹20,00,000
Taxable gratuity amount
min(payable, formula-computed) vs ₹20L limit
₹0 (within exempt limit)
Gratuity Payable (Net after tax)
₹2,07,692
Special Eligibility Cases
• Death in service: Eligible regardless of tenure.
• Disability: Eligible regardless of tenure.
• Termination for misconduct: Gratuity can be forfeited partially or fully.
• Retrenchment: Eligible if ≥ 1 year service.
⚠ Gratuity must be paid within 30 days of LWD. Delay attracts 10% p.a. interest.
Key Gratuity Rules
• Divisor is always 26 (not 30) — Act mandated.
• Multiplier is always 15 — represents 15 days per year.
• Based on Basic + DA only — HRA and other allowances excluded.
• Max exempt: ₹20 lakh per Sec 10(10).
• Employer-funded — not deducted from employee salary.
Notice Period Recovery / Waiver — Priya Shah
Contract notice: 60 days · Served: 57 days · 3 days short
Notice Period Details
Notice recovery = Daily rate × Shortfall days
= (₹90,000 ÷ 30) × 3 = ₹9,000
= (₹90,000 ÷ 30) × 3 = ₹9,000
Notice Recovery / Waiver Decision
✓ Manager Rakesh Sharma approved full waiver on 02 Jun 2025 — employee had a medical reason for early exit. Documented in exit interview.
Notice Buyout by Employer (If Any)
ℹ If the company asks the employee to stop working before serving the full notice period (garden leave scenario), the company must pay the remaining notice days as Notice Pay.
Waiver Approval Audit
Full waiver approved by Rakesh Sharma (Reporting Manager)
Exit interview completed
Resignation accepted
Dues & Deductions — Priya Shah
All amounts to be deducted from FnF · TDS computation · Asset returns · PF
Outstanding Loan & Advance Recovery
−₹15,000
| Loan / Advance | Principal | Outstanding | Recover in FnF |
|---|---|---|---|
| Personal loan (disbursed Feb 2025) | ₹50,000 | ₹15,000 |
Total loan recovery from FnF: ₹15,000
TDS Computation on FnF
−₹18,244
ℹ FnF TDS is computed on the total FnF payout added to taxable income for the year. Gratuity within the ₹20L exempt limit is excluded. Leave encashment is fully taxable for private sector.
Salary earned Apr–Jun (already TDS'd)
₹2,70,000 × 3 months (TDS already deducted)
₹2,70,000 (historical)
Pro-rata salary Jun (taxable)
₹59,456 — TDS to be computed now
₹59,456
Leave encashment (fully taxable)
Private sector — no exemption
₹30,462
Gratuity (exempt up to ₹20L)
₹2,07,692 — fully within exempt limit
₹0 (fully exempt)
Total FnF taxable amount
₹89,918
TDS already deducted (Apr–May)
Needs to be accounted in final computation
₹6,000 (historical)
Remaining TDS on FnF components
₹18,244
TDS to deduct on FnF payment
−₹18,244
Asset Return & Exit Document Checklist
⚠ FnF payment can be held until assets are returned and all clearance documents are signed.
Laptop (Dell XPS 15) returned
Verified 18 Jun 2025 · IT asset tag 7821
Access card / ID badge surrendered
Security desk · 20 Jun 2025
Knowledge transfer — HR SOP documentation
Due 18 Jun · Not yet received from employee
Pending
No Dues Certificate signed
All departments cleared
Exit interview conducted
01 Jun 2025 · HR Priyanka R.
PF Withdrawal / Transfer
ℹ PF is not part of FnF payment — it is directly claimed by the employee from EPFO. Employer's role is to file appropriate EPF exit forms (Form 10C for EPS, Form 19 for EPF withdrawal, Form 13 for transfer).
Employee contribution₹2,59,200
Employer EPF (3.67%)₹79,200
Total (approx.)₹3,38,400
Total Deductions Summary
Loan recovery−₹15,000
TDS on FnF−₹18,244
Notice recovery₹0 (waived)
Professional Tax−₹133
Employee PF (pro-rata)−₹2,880
Total Deductions−₹36,257
Final Settlement — Priya Shah
All components computed · Ready for approval · Payment date: 05 Jul 2025
Full & Final Settlement
uKnowva Technologies Pvt. Ltd. · FnF Reference: FNF/2025-26/042
Priya Shah
Earnings / Payables
Pro-rata salary (20/30 days Jun 2025)₹59,456
Earned Leave encashment (22.0 days)₹30,462
Gratuity (6 completed years)₹2,07,692
Variable pay arrear (if any)₹0
Total Earnings₹2,97,610
Deductions
Employee PF (June pro-rata)−₹2,880
Professional Tax (June pro-rata)−₹133
Income Tax (TDS on FnF)−₹18,244
Loan recovery (personal loan balance)−₹15,000
Notice period recovery₹0 (waived by manager)
Total Deductions−₹36,257
Net Payable to Employee
HDFC Bank · XXXX 5412 · NEFT by 05 Jul 2025
₹2,61,353
Approval Workflow
HR → Finance → CFO (gratuity > ₹1L requires CFO)
✓
HR Executive (Maker)
Anita Rao · Computed and submitted
2
HR Head (Checker)
Priya Shah — self-recusal · Delegated to Deputy HR
3
Finance Controller
Sanjay Iyer
4
CFO Sign-off (Gratuity > ₹1L)
Vikram Menon · Required as gratuity = ₹2.07L
Documents to Issue on Settlement
FnF Settlement Letter
Signed by HR Head · Acknowledge receipt amount
Form 16 (for partial year)
Apr–Jun 2025 TDS certificate · Issued with annual Form 16
Experience / Service Letter
Period: 12 Mar 2019 – 20 Jun 2025
PF Transfer Form 13 / Form 19
Employee chose PF transfer · Submit to EPFO within 5 days
Gratuity Receipt (Form L)
Acknowledgement under Payment of Gratuity Act
Settlement Summary
Pro-rata salary₹59,456
Leave encashment₹30,462
Gratuity₹2,07,692
Less: PF (employee)−₹2,880
Less: TDS−₹18,244
Less: PT−₹133
Less: Loan recovery−₹15,000
Notice recovery₹0 (waived)
Net Payable
₹2,61,353
Due: 05 Jul 2025 · 45-day limit: 04 Aug 2025
Post-settlement (org policy)
On mark as paid, the system will run the automations configured under
Configuration → FnF → Post-settlement automation
(login deactivation, alumni portal, FnF letter email, IT ticket).
Preview: all four automations enabled for this company.