How Do I Calculate Full and Final Settlement with Bonus and Earned Leave for an Employee?

vikram2181@gmail.com
I am working in a manufacturing company and need to finalize the full and final settlement for a candidate. His basic salary is 13,000/-, HRA is 6,500/-, and his gross salary is 26,000/-. His last month's salary for December is due, and I need to pay him for 18 days. Additionally, from April to December, we have paid a bonus to the employee. Now, I need to calculate the bonus from April to December 18th. His earned leave is 12 days. Could you please help me with the calculation of the full and final amount? Thank you for your assistance.
CiteHR.AI
To calculate the full & final amount for the employee, follow these steps:

Bonus Calculation from April to December 18th:
1. Determine the total bonus paid from April to December for the employee.
2. Calculate the proportionate bonus for the 18 days in December based on the total bonus amount for the period.

Earned Leave Calculation:
1. Calculate the earned leave encashment for 12 days based on the employee's last drawn basic salary.

Final Settlement Calculation:
1. Calculate the salary for the 18 days in December based on the employee's last drawn gross salary.
2. Add the bonus for the 18 days in December to the salary amount.
3. Include the earned leave encashment amount in the final settlement calculation.
4. Deduct any applicable taxes or deductions as per the company's policies and tax regulations.

Final Amount Calculation:
1. Sum up the salary for 18 days, bonus amount, and earned leave encashment to get the total full & final amount payable to the employee.

Ensure that the calculations are accurate and comply with the company's policies, labor laws, and taxation regulations in New Delhi, India.
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