Full & Final Of Employee - Xls Download

i want to know the procedure for full & final settelment of employee

Employee put his/her resignation on 04/09/2010 & his / her last date is 13/09/2010 there is practice of 30 dyas of notice period the what is calculation

Suppose the last working day of the person is 10th in a month of 31 days and his salary is X then as below
Salary ---- (X(gross/CTC)x10)/31= salary to be given
PL Encashment ------- No.of PLX(basic/30) = Encashment amount
Any bonus if pending that needs to be given to the employee
The above would be his earning
From the above total earnings, below are the deduction you need to do
PT (according to the salary of 10 days as in example)
PF
I.Tax (if any to be deducted)
Notice Period Deduction (if not completing the notice period of 30days)
And any other deduction which you have according to your structure
After this you get his F&F settlement amount
And if that person has worked for 5 years with the company then you need to also calculate his gratuity

Vignesh below is your answer
Salary ---- (X(gross/CTC)x13)/31= salary to be given
PL Encashment ------- No.of PLX(basic/30) = Encashment amount
Any bonus if pending that needs to be given to the employee
The above would be his earning
From the above total earnings, below are the deduction you need to do
PT (according to the salary of 13 days )
PF (according to the salary of 13 days )
I.Tax (if applicable)
Notice Period Deduction ----- ((gross/CTC)x20)/30
And any other deduction which you have according to your structure
After this you get his F&F settlement amount
And if that person has worked for 5 years with the company then you need to also calculate his gratuity

Dear Vignesh,
Plz find attcmnt of an Full & Final statement. This may help you a lot.
Regards
Praveen

Hi there,
Final statement of employee after resignation depending on the company policy
Entitled to Employee
•Final Basic Salary Entitled
•Deduct from the basic salary his monthly pension contribution
•Final Allowance
•Encashment Against Annual leave
•Encashment Against any overtime done
•Any bounces entitled
•End of Service Benefits (depending on company policy ) But universally known (last basic salary entitled into total no of years serviced in the organization)
•Any pension fund contribution deducted from emplyee’s basic salary has to be paid back tothe employee
•If the employee resigns in December he has earned the increment to his basic salary that has to be paid to him
•End of Service Certificate
the above list is very basic/ generic many companies have very attractive benefit given to employee when resigning please do make sure you check your company policy

Hi, If in case an employee absconds and dues are payable to him even after adjusting his notice period against salary, should we pay him or can we retain that. On what grounds can we hold his payment

Dear Chitra,
Greeting for the day,
There is a little misconception in pl encashment, the formula should be no. of pl X basic salary/26 instead of 30 or 31.
thanks & regards,
from,
sumit kumar saxena,
+91-9899669071, 0120-4131277

Dear Vignesh,
First and foremost thing in full and final settlement is the settlement of salary of previous month. In your case you have to pay 13 days salary - deductions are mandatory including unserved notice period and other statutory deductions.
EL encashment:Basic + DA. One day salary will be calculated as - Monthly salary / 26 Days
Unpaid bonus and arrears of salary increment if any to be settled.
If resignation/termination or superannuation below 5 years of service and if any amount is deducted from the salary of the employee in the head gratuity, it is to be paid back.
Details of gratuity to be intimated to the employee if any. Notice for payment of gratuity - Form 'L'

Dear All,
PL encashment formula is depends on the category of the employee.
1. If he is monthly payable, then 30 (only and not 31) days formula (applicable for paid weekly off).
2. If he is daily rated monthly payable, then 26 days formula (w.off not applicable for payment).
Sunil L. PAnse