Full and final settlement on exit: wages, leave, gratuity, PF

Compliance Pack

Full and final settlement on exit: wages, leave, gratuity, PF

What this means, checked by a CA

When someone leaves, the Code on Wages now says their wages must be paid within two working days. We compute the final salary, leave encashment, gratuity, permitted deductions and tax, prepare a clear statement, and close PF on the EPFO portal.

₹1,999

On exit, + 18% GST

  • Delivered in 1 working day after exit data (to meet the two working day rule)
  • Due: Wages within two working days of the last working day; gratuity within 30 days of becoming payable

How we do it: IDFD

Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.

InformationWhat we need from you · 7 items
  1. Resignation or termination letter

    Fixes the exit type and date

  2. Last working day

    Starts the two day clock

  3. Salary structure and attendance

    Final salary and Code wages

  4. Leave balance

    Leave encashment amount

  5. Date of joining and contract type

    Gratuity eligibility

  6. Advances, loans, unreturned assetsOptional

    Permitted deductions

  7. UAN and exit reason

    PF exit marking

DiscussionWhat we discuss · 5 items
  1. What is the exact last working day?

    Two working days run from it

  2. Permanent or fixed-term, and years of service?

    Gratuity after 5 years, or 1 year for fixed-term

  3. Was the notice period served in full?

    Notice pay recovery and tax

  4. Are there written policies for recoveries?

    Unsigned recoveries are hard to defend

  5. Is any dispute or complaint already raised?

    Changes the route to assisted

FormsForms we file · 6 items
  1. Collect exit data and clearances before the last working day

    Where: Internal. Due: Before the last working day

  2. Compute final wages, leave encashment and permitted deductions

    Leave encashment = unused earned leave times daily wage (Code wages); total deductions capped at 50% of wages in the wage period

    Where: Internal. Due: Last working day

  3. Compute gratuity if eligible

    15 days' wages for each completed year (monthly wage divided by 26 times 15), see LAB-GRT-01

    Where: Internal. Due: Within 30 days of becoming payable

  4. Compute TDS on taxable parts and prepare an itemised F&F statement

    Where: Internal. Due: With payment

  5. Pay wages and leave encashment

    Where: Bank transfer. Due: Within two working days of the last working day

  6. Mark PF exit after the final ECR

    Where: EPFO Unified Employer Portal. Due: After the final contribution month

DeliverablesWhat you get · 3 items
  1. Itemised F&F statement

    When: Within 1 working day of exit data

  2. Payment of wages and leave encashment

    When: Within two working days

  3. PF exit marked; Form 16 for the year

    When: PF after the final ECR; Form 16 by the annual due date

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+ 18% GST

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