How to use it
- 1Enter your company name, address and logo once. They are saved on your device for next time.
- 2Fill in the employee's name, designation, how the employment ended and the last working day.
- 3List what is payable — salary for the days worked, leave encashment, gratuity, bonus, pending reimbursements — and then what is being recovered, such as a short notice period or an advance.
- 4Say whether the amount has been paid or is still to be paid, and how. Keep the acknowledgement at the bottom if you want a signed receipt.
- 5Check the preview and press Download PDF / Print. To keep working on it yourself, press Excel (.xlsx) for a sheet with working formulas, or Word (.docx) to change the wording.
Full and Final Settlement – a filled-in sample
Made with the tool above from made-up details: every name and number in it is invented. Press “See a filled-in example” in the tool to open it there and download it.
Prepare it during the notice period, not on the last day
Two working days is not long to compute a leave balance, recover a notice shortfall, settle advances and get an approval. Employers who meet the deadline do the arithmetic during the notice period and hand the statement over on the last working day, together with the relieving letter and the experience letter. It closes the file in one go and stops the follow-up emails.
Show the heads, not just the total
A single net figure invites a dispute and answers nothing. A statement that lists salary for the days worked, leave encashment, gratuity, the notice recovery and the tax lets the person check each line against what they expected. Where the two sides disagree, they disagree about one line rather than about the whole amount.
What this statement does not cover
Wages are one thing; the machinery behind provident fund, gratuity and the annual bonus is separate, with its own timelines. An employer who has paid the salary dues on time has not necessarily finished. The settlement is also the employer’s own record — it is not a form prescribed by any Act, and signing a receipt for it is not the same as giving up an entitlement that a statute grants.
Keep a signed copy
The acknowledgement at the bottom is worded to cover what the statement actually covers: receipt of the net amount in settlement of salary dues. Print two copies, hand one over and keep the signed one. If the employee thinks a head is missing, it is far better to hear it then, in writing, than a year later.
Questions people ask
What is a full and final settlement?
It is the closing account between an employer and a person who has left: everything still owed to them, less everything being recovered from them, and the net figure that settles the two. It is usually handed over with the relieving letter and the experience letter on the last working day.
How soon must the final dues be paid?
Section 17(2) of the Code on Wages, 2019 requires wages payable to be paid within two working days where an employee is removed, dismissed, retrenched, resigns, or becomes unemployed because the establishment closed. Two working days — not thirty, not forty-five, and not 'the next payroll cycle'. This is a change worth knowing: the old Payment of Wages Act, 1936 gave the second working day only where the employer ended the employment, so resignation was not covered and many HR handbooks still assume it is not.
Is there a prescribed form for the settlement statement?
No. The Code on Wages fixes when the wages must be paid, not what the statement has to look like. This format is a clear, conventional layout — heads payable, heads recovered, net amount, amount in words — and you can add or rename any line.
What should go into it?
On the payable side: salary for the days actually worked in the final month, encashment of unused earned leave, gratuity where it is due, any bonus, and pending reimbursements. On the recovery side: notice period not served, advances or loans outstanding, income tax, and company property not returned. List the heads rather than a single net figure — that is what makes the statement useful to both sides later.
Are provident fund and gratuity part of this?
Gratuity is usually shown in the settlement when it is payable, so a head is provided for it. Provident fund is different: the accumulated corpus is withdrawn from EPFO against the employee's UAN and is not something the employer pays out here. There is a tick box that adds a line saying so, to save the questions later.
Can an employer recover notice pay in the settlement?
Recovery for a notice period that was not served is normal, and there is a head for it. What it is worth depends on the appointment letter or the company's policy — the per-day basis and whether it runs on basic pay or gross pay are not the same everywhere, so use the figure your own contract supports.
What if more is being recovered than is owed?
Then the statement says so. If the recoveries come to more than the dues, the total row changes to 'Net amount recoverable' and the wording changes with it, so you are not left printing a negative payable.
What can an employee do if the settlement never arrives?
Put it in writing first — an email to HR and the reporting manager, stating the last working day and asking for the settlement under section 17(2). If that does not work, the Code provides for an authority appointed to hear claims for unpaid wages; it can order payment, and there is an appeal above it. You have three years from the date the claim arose, which is far longer than the six months to a year allowed under the older Acts.
Can I download this full and final settlement format in Excel?
Yes. Press Excel (.xlsx) above the preview. You get the settlement as a working sheet, the way an HR desk keeps it: total dues, total recoveries, the net amount, whether it is payable or recoverable, the net in words and the acknowledgement line are all formulas, so correcting one figure carries through everything below it. Recoveries are typed as ordinary positive amounts under their own heading and subtracted for you. There are no macros, so there is no security warning to click through. It is a standard .xlsx file, the format used by Excel, Google Sheets, WPS Office and LibreOffice. Press it with an empty form to get a blank full and final settlement template in Excel, with the usual heads already listed.
Can I download this settlement format in Word?
Yes. Press Word (.docx) above the preview. It is laid out like the PDF and every word and figure can be edited. It is a standard .docx file, the format used by Microsoft Word, Google Docs, WPS Office and LibreOffice. Press it with an empty form and you get a blank full and final settlement format in Word, with the headings in place and room to type.
Can the statement be in Hindi?
Yes. Switch Document language to हिंदी above the preview and the whole statement is worded in Hindi, including the heads we suggest and the amount in words.
Is there a blank full and final settlement format?
Yes. Press 'Blank format' and it prints with ruled lines in place of the details and empty rows in the table, to fill in by hand.
Last reviewed: 22 September 2026