An exit settlement combines amounts with different legal and contractual bases. A single percentage of CTC cannot calculate them all. Use the full and final settlement calculator to show each amount and assumption separately.
Collect the records first
Keep the joining and exit dates, appointment terms, current wage breakup, last paid period, approved leave balance, notice correspondence and any agreed reimbursement. Confirm continuous service and establishment coverage before adding statutory gratuity. A CTC provision is not evidence that the same amount is payable on exit.
Calculate salary and leave independently
For an entered monthly gross of ₹30,000, ten payable days and a thirty-day divisor, salary due is ₹10,000. Five encashable leave days at a ₹26,000 monthly leave wage and a twenty-six-day divisor add ₹5,000. These are examples of entered terms, not universal divisors. The applicable state rule or contract decides the actual basis.
Keep notice recovery visible
Identify whether the employer owes notice pay or proposes to recover a notice shortfall. Record the number of days and wage base. A calculated recovery does not establish that the deduction is enforceable; check the contract, actual waiver or acceptance and applicable deduction restrictions.
Check gratuity service conditions
Ordinary resignation or retirement generally uses five years of continuous service under the gratuity chapter. Death or disablement has an exception. The Ministry's 2026 FAQ states a one-year service condition for direct fixed-term employees and distinguishes them from contractor labour. The calculator follows that guidance; it does not decide disputed continuous service or the four-years-and-240-days argument.
Apply the correct wage and tax treatment
The statutory wage under the Code can include an add-back and may differ from basic pay. Inspect it with the statutory wage structure checker. Keep tax exemptions and settlement TDS as a separate review. The tool subtracts only the TDS and other deductions entered, and exports a signed calculation for discussion with payroll.
Official sources and scope
Source review: 2026-10-08. Check the relevant notification and your own records before filing or settling an entitlement.