A Guide to the Full and Final (F&F) Settlement Process

Full and Final Settlement

Before generating the salary payslip, if any employee is exiting the organization (due to resignation, retirement, or termination), the payroll administrator can initiate a Full & Final (F&F) Settlement.

This ensures that all pending earnings, deductions, and adjustments are settled correctly and included in the employee’s final payslip.

Steps to Process Full & Final Settlement

Initiate Settlement

  • Navigate to Payroll → Salary Payslip → Full and Final Settlement.

  • Click on Initiate Settlement button

  • A window will appear where you can select the specific employee record. Click Edit to make any necessary updates, or proceed with the system-provided details as they are.

Select the Employee

  • Choose the employee for whom the settlement needs to be processed.

Provide Necessary Details

  • Enter the required settlement details, including:Outstanding payments (e.g., leave encashment, bonus,etc). And Deductions/Adjustments (e.g., notice period recovery, loan balance, advances, statutory deductions)

System Calculation

  • The system will automatically calculate the total settlement amount by factoring in: Earnings, Deductions and Adjustments.

  • The net settlement payable( or recoverable) will be displayed.

  • Once processed, the final payslip will be generated.


Fig: F&F- Initiate Settlement


Fig: F&F- Applicable Earnings & Deductions

Fig: F&F- Leave Encashment


Fig: F&F- Notice Period Recovery

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