Article · 15 min read

Full and Final Settlement in India: 2026 Compliance Guide

Wisemonk Free Intermediate India

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.

  • 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
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The question it answers

  1. How do I let go of my team fairly when the money is about to run out?

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