📄 Article
✓ Link checked
India
Free
Intermediate
Why we picked it This is the India-specific breakdown you owe your team: what full-and-final actually includes (unpaid salary, leave encashment, pro-rata bonus, gratuity for 5+ year staff, EPF), what you can and cannot deduct, and the hard new timeline under the Code on Wages, 2019 (wages within two working days of exit, gratuity within 30 days). It turns your good intentions into a correct, on-time payout.
Full and Final Settlement in India: 2026 Compliance Guide
From Wisemonk by Wisemonk 15 min read
- Under the new labour codes, final wages are due within two working days of the last day, not the old 30 to 45
- FnF spans salary, leave encashment, pro-rata bonus, gratuity, and EPF, minus only reasonable contractual deductions
- Gratuity has its own 30-day statutory clock under the Payment of Gratuity Act; run IT, finance, and admin clearances in parallel to meet it