Free template template · Word

Full & Final Settlement Statement

A full and final settlement statement is the itemised computation of everything owed between employer and employee at exit. It shows earnings such as salary for days worked, leave encashment, bonus and gratuity, deductions such as notice recovery, advances and tax, and the net amount payable or recoverable.

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[Company Logo][Company Name]

FULL AND FINAL SETTLEMENT STATEMENT

F&F No.:: [Reference Number]
Date of Preparation:: [Date]

A. Employee Details

Particulars	Details	Particulars	Details
Employee Name	[Employee Name]	Employee ID	[Employee ID]
Designation	[Designation]	Department	[Department]
Date of Joining	[Date of Joining]	Last Working Day	[Last Working Day]
Total Service	[Years] years [Months] months	Separation Type	[Resignation / Termination / Retirement]
Monthly Basic + DA (₹)	[Basic Salary]	Monthly Gross (₹)	[Amount]
PAN	[PAN]	UAN	[UAN]

B. Earnings

S. No.	Component	Basis of Calculation	Amount (₹)
1	Salary for days worked in final month	[Days] days x gross per day	[Amount]
2	Leave encashment	[Days] days x [basic / basic + DA] per day	[Amount]
3	Statutory bonus / ex-gratia	As per Payment of Bonus rules / policy, pro-rata	[Amount]
4	Gratuity (if eligible)	15/26 x last Basic + DA x completed years	[Amount]
5	Variable pay / incentive due	As per policy	[Amount]
6	Salary in lieu of notice (if employer-initiated)	[Days] days x gross per day	[Amount]
7	Approved reimbursements	As per finance clearance	[Amount]
	Total Earnings (A)		[Amount]

C. Deductions

S. No.	Component	Basis of Calculation	Amount (₹)
1	Notice period shortfall recovery	[Days] days x [gross / basic] per day	[Amount]
2	Salary / loan advance outstanding	As per finance clearance	[Amount]
3	Asset / admin recovery	As per clearance forms	[Amount]
4	Employee PF contribution	12% of PF wages for final month	[Amount]
5	Employee ESI contribution (if applicable)	0.75% of gross for final month	[Amount]
6	Professional tax	As per state slab	[Amount]
7	Income tax (TDS)	As per tax computation	[Amount]
	Total Deductions (B)		[Amount]

D. Net Settlement

Particulars	Amount (₹)
Total Earnings (A)	[Amount]
Less: Total Deductions (B)	[Amount]
Net Payable to Employee / (Recoverable from Employee)	[Amount]
Amount in words	[Rupees ... only]
Payment mode and date	[Bank transfer / Cheque No.] on [DD/MM/YYYY]

Employee acknowledgement: I have received the above statement and the net amount stated, and I confirm the computation has been explained to me.

Prepared by
[Payroll Executive]
Date: [Date]

Checked by
[HR Name]
Date: [Date]

Approved by
[Authorised Signatory]
Date: [Date]

Employee
[Employee Name]
Date: [Date]

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What this template includes

Employee and service details including salary structure
Earnings table: salary for days worked, leave encashment, bonus, gratuity, reimbursements
Deductions table: notice shortfall, advances, asset recovery, PF, ESI, professional tax, TDS
Basis of calculation shown in a column
Net payable or recoverable
Payment mode and date
Preparer, checker and approver sign-off

When to use it

Payroll is calculating dues for any employee who has left
The employee asks for a breakup of the final payment
You need an approval document for the F&F before release
Auditors review exit payments

How to customise this template

1Fill the salary structure as on the last working day
2Use your policy's per-day basis (for example 26 or 30 days, or calendar days) consistently
3Delete gratuity if service is under five years, unless fixed-term rules apply
4Add any variable pay, incentive or retention bonus payable
5Attach the exit clearance and finance clearance forms

HR tips

Show the formula or basis for each line to avoid disputes
Pay F&F within your policy and any legal timeline
Recover only amounts supported by policy or written agreement
Share a copy with the employee along with the payment

F&F computations depend on wage definitions, leave rules, bonus and gratuity law, and the Labour Codes and state rules now being notified. Use this sheet as a starting point and verify calculations against applicable laws and your policies, with professional advice where needed.

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Frequently asked questions

What is included in a full and final settlement?+

Typically salary for days worked, leave encashment, bonus or incentives due, gratuity if eligible and approved reimbursements, less notice shortfall, advances, asset recoveries and statutory deductions.

How is gratuity calculated in F&F?+

For eligible employees with five or more years of continuous service, gratuity is generally 15 days' wages for each completed year of service, based on last drawn basic plus DA, calculated as per the applicable law.

How is leave encashment calculated?+

It is usually the eligible leave balance multiplied by the per-day rate as per company policy, commonly based on basic salary or basic plus DA.

Is TDS deducted on full and final settlement?+

Yes, the taxable components are subject to TDS as per income tax rules, while some items such as gratuity may have exemptions within limits.

All 50 resignation, exit & full-and-final settlement →

[Company Logo][Company Name]

FULL AND FINAL SETTLEMENT

Ref. No.:: [Reference Number]
Date:: [Date]

To,
[Employee Name]
Former [Designation], [Department]
Employee ID: [Employee ID]
[Employee Address]

Subject: Full and Final Settlement of Your Dues

Dear [Employee Name],

Further to your separation from [Company Name] on [Last Working Day], we have completed your full and final settlement. The summary is given below and the detailed statement is enclosed.

Particulars	Amount (₹)
Salary for days worked	[Amount]
Leave encashment	[Amount]
Bonus / incentive	[Amount]
Gratuity (if eligible)	[Amount]
Reimbursements	[Amount]
Total earnings	[Amount]
Less: Notice recovery	[Amount]
Less: Advances and other recoveries	[Amount]
Less: PF, ESI, professional tax and TDS	[Amount]
Net amount payable	[Amount]

Letter · Word

Full & Final Settlement Letter

Download .docx

[Company Logo][Company Name]
FINAL SETTLEMENT APPROVAL FORM
Approval No.:
[Reference Number]
Date:
[Date]
1. Employee Summary
Employee Name
Employee ID
Designation / Department
Date of Joining
Last Working Day
Separation Type
F&F Statement Reference
2. Pre-payment Checks
- Exit clearance form fully signed
- Finance clearance received with recoveries
- Final month attendance and leave balance verified
- Investment proofs considered for TDS
- Gratuity eligibility checked (five years' continuous service or applicable rule)
- Bank details verified
3. Settlement Summary
Form · Word
Final Settlement Approval Form
Download .docx

Employee Name
Employee ID
Designation / Department
Date of Joining
Last Working Day
Separation Type
F&F Statement Reference

[Company Logo][Company Name]

FINAL SALARY SETTLEMENT SHEET

Employee:: [Employee Name] ([Employee ID])
Salary Month:: [Month YYYY]
Last Working Day:: [Last Working Day]

1. Attendance

Calendar Days	Days up to LWD	Paid Leave	LOP Days	Payable Days
[Number]	[Number]	[Number]	[Number]	[Number]

2. Earnings

Component	Monthly Rate (₹)	Payable Days	Prorated Amount (₹)
Basic + DA	[Basic Salary]	[Number]	[Amount]
HRA	[HRA]	[Number]	[Amount]
Special allowance	[Amount]	[Number]	[Amount]
Shift / night allowance	[Amount]	[Number]	[Amount]
Overtime / arrears	-	-	[Amount]
Gross earnings			[Amount]

3. Exit-specific Items

Template · Word

Final Salary Settlement Sheet

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[Company Logo][Company Name]
RESIGNATION LETTER
Date:
[Date]
Employee ID:
[Employee ID]
To,
[Reporting Manager]
[Designation of Manager]
[Company Name]
[Company Address]

Cc: [HR Name], Human Resources
Subject: Resignation from the post of [Designation]
Dear [Reporting Manager],
Please accept this letter as formal notice of my resignation from the position of [Designation] in the [Department] department of [Company Name]. I joined the organisation on [Date of Joining], and after careful thought I have decided to move on to pursue [a new professional opportunity / higher studies / personal reasons].
As per the terms of my appointment, I will serve a notice period of [Notice Period], and my last working day will be [Last Working Day]. If the company agrees to an earlier release, I am open to discussing it, subject to completing my handover.
Letter · Word
Resignation Letter Format
Download .docx
[Company Logo][Company Name]
EMPLOYEE RESIGNATION FORM
Form No.:
[Reference Number]
Date Received by HR:
[Date]
[Company Name]
[Company Address]

To be filled by the employee and submitted to the reporting manager and HR. Please write clearly.
Section A: Employee Details
Employee Name
Employee ID
Designation
Department
Work Location
Date of Joining
Reporting Manager
UAN (for PF transfer)
Personal Email
Mobile Number
Section B: Resignation Details
Date of Resignation
Notice Period as per Appointment Letter
Requested Last Working Day
Request for Notice Waiver / Buyout (Yes / No)
If yes, reason for early release
Form · Word
Employee Resignation Form
Download .docx
[Company Logo][Company Name]
RESIGNATION ACCEPTANCE LETTER
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
[Work Location]
Subject: Acceptance of Your Resignation
Dear [Employee Name],
We acknowledge receipt of your resignation letter dated [Date of Resignation]. After discussion with your reporting manager, the management has accepted your resignation from the position of [Designation]. Your last working day with [Company Name] will be [Last Working Day].
Before your last working day, please complete the following:
Letter · Word
Resignation Acceptance Letter
Download .docx
[Company Logo][Company Name]
ACKNOWLEDGEMENT OF RESIGNATION
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Acknowledgement of Resignation Received on [Date of Resignation]
Dear [Employee Name],
This is to acknowledge that the Human Resources department received your resignation from the position of [Designation] on [Date of Resignation] through [email / letter / HRMS]. Your resignation has been recorded in your personnel file with this date.
As per your appointment terms, your notice period is [Notice Period]. Based on the date of receipt, your tentative last working day would be [Last Working Day]. Please treat this date as provisional until you receive the formal acceptance letter, which will confirm the final date and exit formalities.
Letter · Word
Resignation Acknowledgement Letter
Download .docx
[Company Logo][Company Name]
REQUEST FOR WITHDRAWAL OF RESIGNATION
Date:
[Date]
Employee ID:
[Employee ID]
To,
[Reporting Manager]
[Company Name]
[Company Address]

Cc: [HR Name], Human Resources
Subject: Request to Withdraw My Resignation Dated [Date of Resignation]
Dear [Reporting Manager],
I had submitted my resignation from the position of [Designation] in the [Department] department on [Date of Resignation], with my last working day proposed as [Last Working Day]. The resignation was [acknowledged / accepted] vide letter Ref. No. [Reference Number] dated [Date].
After further reflection, I would like to respectfully request that my resignation be withdrawn and that I be allowed to continue in my present role. [Reason, e.g. my personal circumstances have changed / after our recent discussion I am confident my career goals can be met here].
Letter · Word
Resignation Withdrawal Request
Download .docx

Date of Resignation
Notice Period as per Appointment Letter
Requested Last Working Day
Request for Notice Waiver / Buyout (Yes / No)
If yes, reason for early release

Employee Name
Employee ID
Designation
Department
Work Location
Date of Joining
Reporting Manager
UAN (for PF transfer)
Personal Email
Mobile Number

Full & Final Settlement Statement

Preview of the template

A. Employee Details

B. Earnings

C. Deductions

D. Net Settlement

What this template includes

When to use it

How to customise this template

HR tips

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Frequently asked questions

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