Image

Full And Final Statement Process

Full & Final Settlements commonly known at the FnF process is the procedure required to be followed by the employer after the employee has resigned from his/her services Full and final settlement(F&F). The procedure is fairly simple and is as per guidelines set out in the appointment contractf&ttlement calculation Bangalore

As a leading HR & Payroll Company consulting small and medium businesses Pan-India on things HR, Payroll & Compliance related ; exit formalities are something most companies remain clueless about F & F / Final Settlement bangalore. This week’s post draws light on the major components that are part of Full & Final Settlement Statement.

Major Components that are part of the Full & Final Settlements

1. Unpaid Salary

The full and final settlement includes the unpaid salary for the number of days for which the employee has worked for since his resignation date and his last working day. Unpaid salary including annual benefits such as LTA ( leave travel allowance) and arrears which is calculated as the number of days for which salary is to be paid multiplied by the gross salary divided by 26 (paid days in a month).

2. Non-Availed Leaves & Bonus

As per Section 79 (11) of the Factories Act 1948 all unpaid leave dues should be paid by or before the 7th & 10th of the following month of resignation Full & Final Settlement Process Bangalore. As per Section 15(3) of the Karnataka Shops & Commercial Est. Act leave encashment dues should be settled by or before the 7th & 10th of the following month.

Payment for non-availed leaves (earned or privilege leave), which is calculated as the number of days of non-availed leaves multiplied by basic salary divided by 26 days (paid days in a month).

4. Gratuity

As per Section 7 (3) of the PG Act 1972 Gratuity should be offered within 30 days of the separation or else it will have to be paid with interest if four years and 240 days have been completed by the employee.

5. Deductions

Deductions include Profession Tax (if applicable), Provident Fund, Income Tax and Compensation for Notice Period not served. Gratuity and cashed earned leave are exempt from tax deducted at source (TDS) as per Income Tax Act. All other payments attract TDS under Section 192 of the Income Tax Act. As per Section 72 (5) of the E.P.F Act 1952 the Employer shall forward the E.P.F claim forms within 5 Days of the employee submitting the claim.

6. Pension

Pension, as long as the employee has completed at least 6 months of service with the existing employer and 10 years of ‘pensionable service’ on providing a Scheme Certificate after retirement (58 years) age.

Most Companies that we work with are not sure about what the Full and Final Settlement Statement should look like and what information it should entail. Here is a downloadable template that you can use to create an Full & Final Settlement.

We are Trusted By Leading Companies

client1
client2
client3
client4
client5
client6
client7
client8
client9
client10
client11
client12
client13
client15
client16
client17
client20
client21

© Copyright 2018 taxyoga.com. All Rights Reserved.

Powered By : Apollowebdesign