Key idea
Your final settlement has more moving parts than a normal payslip. Knowing what belongs in it stops you from leaving money behind.
When you resign, your last pay is not a normal salary run. It is a full-and-final settlement (F&F) that ties together several loose ends, and it is worth checking line by line, because errors here are rarely in your favour.
What the F&F usually includes
| Component | In your favour or theirs |
|---|---|
| Pending salary + reimbursements | Yours |
| Leave encashment (unused leave) | Yours |
| Gratuity (if 5+ years) | Yours |
| Notice-period shortfall | Recovered from you |
| Any advances / recoveries | Recovered from you |
Notice pay, both ways
If you serve your full notice, you are paid normally through it. If you leave early, the company may recover pay for the days you did not serve (notice-pay buyout), sometimes negotiable, sometimes borne by your new employer. Read your contract for how notice is calculated.
Finished reading?
Marking this complete counts today, and your streak becomes day 1.