Last salary
To the last working day.
All payroll & labour compliance services
Payroll & Labour Compliance
Full and Final Settlements
When an employee leaves, FinAura computes everything due: salary to the last day, leave encashment, gratuity where eligible, bonus, notice-period pay or recovery, reimbursements and loans, with tax worked out. The settlement is prepared for payment within two working days, as the Code on Wages now requires, with a clear statement for the employee.
- Chartered Accountant-led
- Bangalore and across India
- Reply within one business day
What is covered
What Full and Final Settlements Covers
Everything owed, both ways, worked out quickly.
Leave encashment
Under your policy and the codes.
Gratuity
Where the employee is eligible.
Recoveries
Notice shortfall, loans, assets.
Tax
TDS on the settlement.
Settlement statement
Clear for the employee.
How the month runs
How It Works
Notify, compute, approve, pay.
Step 1
Notify
- Exit date
- Leave balance
- Assets and loans
Step 2
Compute
- Dues
- Recoveries
- Tax
Step 3
Approve
- Statement to you
- Queries
- Sign-off
Step 4
Pay
- Within two working days
- Documents issued
- PF exit marked
Your part
What We Need From You
- 01Exit date and reason
- 02Leave balance and policy
- 03Any loans, advances or assets
- 04Approval of the statement
Our part
What You Get
- Dues computed correctly
- Payment within the legal time
- A clear statement for the employee
- PF and records updated
A common question
What changed for final settlements?
The Code on Wages, in force since 21 November 2025, requires wages due to be paid within two working days when an employee resigns, is removed or is retrenched.
Many companies used to settle in thirty to sixty days. Meeting the new timeline needs a process that starts before the last day, not after it.
See gratuity and leave encashmentPaidWithin two working days
SettlementDues and recoveries
ExitDate and balances
Who it is for
Who It Is For
Employers with regular exits
Settlements every month.
HR teams
Meeting the new timeline.
Companies restructuring
Several exits at once.
Employers with disputes
Clear, defensible workings.
The rules, in plain English
What the Law Says
Code on Wages, 2019
Section 17(2)
When an employee resigns, is removed or is retrenched, the wages due are paid within two working days.
Official source: labour.gov.inCode on Social Security, 2020
PF, ESI and gratuity
Provident fund, employees' state insurance, gratuity and maternity benefit now sit under one code. The EPF and ESI schemes continue, run by EPFO and ESIC.
Official source: labour.gov.inThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
Full and Final Settlements: Questions, Answered
How soon must a full and final settlement be paid?
Under the Code on Wages, wages due are paid within two working days of resignation, removal or retrenchment.
Is leave encashment taxable?
Leave encashment on leaving is taxable, with an exemption for some employees within limits; we compute TDS accordingly.
Can notice-period shortfall be recovered?
Yes, if the employment terms provide for it, and it is shown clearly in the statement.
Is gratuity part of the settlement?
Gratuity is paid to eligible employees on exit; the codes also extend it to fixed-term employees after a shorter period.
Often Taken Together
All 11 Payroll & Labour Compliance services01Payroll & Labour ComplianceGratuity, Bonus and Leave EncashmentStatutory entitlements computed, provided for in the books and paid when due.02Payroll & Labour CompliancePayroll ManagementMonthly salary processing, payslips, reimbursements, full-and-final settlements and the payroll register, with TDS on salaries computed correctly.03Systems & ControlsPolicies & DocumentationFinance and HR policies, employee handbooks, SOPs and business documentation.04Tax & ComplianceTaxationGST, income tax, TDS, tax planning and notice replies, from reconciled data.