Calculate your last working day based on resignation date and notice period. Also estimates your full and final settlement — unpaid salary, earned leave encashment, and gratuity.
Notice period begins the day after you submit your resignation. If you resign on March 1 with a 30-day notice, your last working day is March 31. Some companies count calendar days, others only working days — check your employment contract.
Notice period buyout (or payment in lieu of notice) means paying the company your salary for the remaining notice days to leave early. For a 30-day notice with 15 days remaining at ₹1,00,000/month: buyout = ₹50,000.
FnF includes: salary for days worked in the last month, earned leave encashment (pending leave days × daily wage), gratuity (if 5+ years), bonus (if applicable), and any other dues. The company also recovers any loans or advance salary taken.
Gratuity = (Basic salary × 15 / 26) × Years of service. It is paid to employees with 5+ years of service. Basic salary is typically 40-50% of CTC. Maximum tax-free gratuity is ₹20 lakh. Formula: (Last basic ÷ 26) × 15 × years.
Employers must complete FnF within 30-60 days of resignation (varies by state). They can only withhold amounts for genuine dues (loans, notice period shortfall). Withholding entire settlement without reason is illegal and can be contested.
Employees accumulate leaves (typically 1-1.5 days per month). When leaving a company, unused earned leaves can be encashed at the daily salary rate. Some companies cap encashment at a maximum number of days (e.g. 30-45 days).
Always collect: resignation acceptance letter, relieving letter, experience letter, last 3 salary slips, Form 16 (for the current year), PF account number and UAN, and FnF settlement letter. These are needed for your next employer.