A full and final settlement (FnF) Excel template totals what an exiting employee is owed against what is recovered, to arrive at the net payable. This free FnF format for India lists payables (unpaid salary, leave encashment, gratuity, bonus) and recoveries (notice shortfall, loan, asset), then nets them with a SUMIF formula. Use it for a clean exit, then automate FnF once exits become routine.

Free Full & Final Settlement Excel Template for India

A full and final settlement (FnF) Excel template totals what an exiting employee is owed against what is recovered, to arrive at the net payable. This free FnF format for India lists payables (unpaid salary, leave encashment, gratuity, bonus) and recoveries (notice shortfall, loan, asset), then nets them with a SUMIF formula. Use it for a clean exit, then automate FnF once exits become routine.

What a Full & Final Settlement Excel Template must include

  • Employee details and last working day
  • Payables: unpaid salary, leave encashment, gratuity, pending bonus
  • Recoveries: notice shortfall, loan or advance, asset recovery
  • A Type column (Payable or Recovery) for each line
  • Net settlement = total payables minus total recoveries
  • Sign-off space for HR, finance, and the employee

Drafting tips

  • Settle FnF within the timeline your state and the Code on Wages require, usually within two days of the last working day where applicable.
  • Get the employee to acknowledge the statement. It prevents disputes over recoveries later.
  • Gratuity is payable after 5 years of continuous service. Do not drop it for long-tenure exits.

Full & Final Settlement Excel Template format

FULL & FINAL SETTLEMENT for [Employee Name] — last working day [DD MMM YYYY]

List every payable and every recovery, tag each as Payable or Recovery, and the net
settles itself. Gratuity applies after 5 years of service (or as your policy allows).

KEY FORMULA
Net Settlement = SUMIF(Type,"Payable",Amount) - SUMIF(Type,"Recovery",Amount)

COMMON COMPONENTS
Payables:   unpaid salary, earned-leave encashment, gratuity, pending bonus/incentive
Recoveries: notice-period shortfall, salary advance/loan, unreturned assets, excess leave

FAQs

What is full and final settlement?

FnF is the final settling of accounts when an employee leaves: everything owed to them (unpaid salary, leave encashment, gratuity, bonus) minus everything they owe (notice shortfall, loans, assets).

How is FnF calculated?

Add all payables, add all recoveries, and subtract: Net = total payables - total recoveries. This template uses SUMIF on the Type column to do it automatically.

What is included in a final settlement?

Typically unpaid salary for days worked, earned-leave encashment, gratuity (after eligible service), and any pending bonus, less notice-period shortfall, loans or advances, and unreturned assets.

When should FnF be paid in India?

The Code on Wages expects wages to be settled soon after the last working day, and many states require it within about two days. Check your state rule and your appointment terms.

Is gratuity part of FnF?

Yes, if the employee has completed five years of continuous service (with limited exceptions). Gratuity = 15/26 x last drawn Basic+DA x years of service.

Can software handle full and final settlement?

Yes. Indian HRM pulls unpaid days, leave balance, gratuity, and recoveries automatically and produces a signed FnF statement and payslip.