Dear all, Can anyone pls explain what is meant by full & final settlement....n how is it done... Pls explain the difference between CTC & Gross... Thanks in advance... Nidhi Sahni
From India, New Delhi
7From India, New Delhi
Hi Nidhi,
Full & Final settlement.. aslo called as FUFA.
it is done when an employee resigns/quits from his/her job..a No Due Certificate has to be issued from his/her immeadiate boss & later an EXIT interview has to be conducted & later on the employee has to fill up all the formalities . (this process may vary from company to company).
CTC-cost to company-this is a whole package which includes basic salary+DA+HRA+mobile+conveyance & all any other allowances included in the package...
in other words the total cost incurred by a company for hiring each employee.
gross salary is before deduction.. & deduction includes provident fund,professional tax & even loan & if any other deductions.
net salary is after deduction .. also called as take home pay.
Note: MEMBERS IF AM WRONG,PLEASE DO CORRECT ME :)
with regards
Murali
From India, Pune
Full & Final settlement.. aslo called as FUFA.
it is done when an employee resigns/quits from his/her job..a No Due Certificate has to be issued from his/her immeadiate boss & later an EXIT interview has to be conducted & later on the employee has to fill up all the formalities . (this process may vary from company to company).
CTC-cost to company-this is a whole package which includes basic salary+DA+HRA+mobile+conveyance & all any other allowances included in the package...
in other words the total cost incurred by a company for hiring each employee.
gross salary is before deduction.. & deduction includes provident fund,professional tax & even loan & if any other deductions.
net salary is after deduction .. also called as take home pay.
Note: MEMBERS IF AM WRONG,PLEASE DO CORRECT ME :)
with regards
Murali
From India, Pune
Full & Final Settlement stand for:
When employee leaves an organisation all the dues, e.g. Medical, LTA, any such allowances which is paid annualy, the salary for how many days employee has worked before the cessation of the services in the last working month, should be settled along with any other clainms, if due e.g. Travel expenses or phone bill etc.
Beside of all this Pf settlement form no. 19 and 10 C should be submitted to PF dept. by Admin/HR dertment, incase employee wants to withdraw the PF amount.
Hope this information may solve your query, incase, if not, you can revert back for more information.
Beat Regards
Deepak Dwivedi
Asst. Manager - HR
From China
When employee leaves an organisation all the dues, e.g. Medical, LTA, any such allowances which is paid annualy, the salary for how many days employee has worked before the cessation of the services in the last working month, should be settled along with any other clainms, if due e.g. Travel expenses or phone bill etc.
Beside of all this Pf settlement form no. 19 and 10 C should be submitted to PF dept. by Admin/HR dertment, incase employee wants to withdraw the PF amount.
Hope this information may solve your query, incase, if not, you can revert back for more information.
Beat Regards
Deepak Dwivedi
Asst. Manager - HR
From China
Dear Nidhi,
Full n final settlement is initiated on teh resignation of employee. Initially a work certificate afetr an employee has completed his notice period . The full and final settlement includes
1 paid days for the month9 in which an employee has resigned)+ EL- Penalties/fines etc.
Once Fn F takes 45-90 days , varies from 1 company to another. ONly when the f& F is done and all te dues are settled a no dues certificate and relieving letter is given.
Gross salary , also known as take home salaryincludes Basic + HRA+ CCA+ conveyance etc
CTC includes gRoss salary n the fringe benefits provided to an employeelike , meal reimbursement, petrol, mobile reimbursemnet etc.
Hope this helps
Thanks
Deepti
From India, Mumbai
Full n final settlement is initiated on teh resignation of employee. Initially a work certificate afetr an employee has completed his notice period . The full and final settlement includes
1 paid days for the month9 in which an employee has resigned)+ EL- Penalties/fines etc.
Once Fn F takes 45-90 days , varies from 1 company to another. ONly when the f& F is done and all te dues are settled a no dues certificate and relieving letter is given.
Gross salary , also known as take home salaryincludes Basic + HRA+ CCA+ conveyance etc
CTC includes gRoss salary n the fringe benefits provided to an employeelike , meal reimbursement, petrol, mobile reimbursemnet etc.
Hope this helps
Thanks
Deepti
From India, Mumbai
Hi, Full & Final is the settlement towards the employees. The employee get all the dues towards the employer. it also include the LTA Medical , Leave Balances. amounts.
From India, Pune
From India, Pune
Nidhi,
On F&F - Full & Final Settlement
You can refer Murali's inputs, however following steps may help..
Step I - No Dues formalities on last day from all Depts like (Supervisor, Finance, Facility, Library, Security & HR)
Step II - Exit interview by HR
Step III - Documents - service certificate, relieving letter, final Settlement & Pay Cheque (Smallsize companies give on the same day (most of them) and big size companies take 2 to 6 weeks).
Step IV - A copy of relieving letter can be placed in personal file
on CTC & Gross
You may pl. refer Murali's inputs.
HR Team, I have placed the information best of my knowledge, pl. correct me wherever if possible.
Thx,
Pradeep
From India, Hyderabad
On F&F - Full & Final Settlement
You can refer Murali's inputs, however following steps may help..
Step I - No Dues formalities on last day from all Depts like (Supervisor, Finance, Facility, Library, Security & HR)
Step II - Exit interview by HR
Step III - Documents - service certificate, relieving letter, final Settlement & Pay Cheque (Smallsize companies give on the same day (most of them) and big size companies take 2 to 6 weeks).
Step IV - A copy of relieving letter can be placed in personal file
on CTC & Gross
You may pl. refer Murali's inputs.
HR Team, I have placed the information best of my knowledge, pl. correct me wherever if possible.
Thx,
Pradeep
From India, Hyderabad
My pleasure, mam.. :) I have been referred to citehr, I find it’s a good place to be part being HR professional. Thx, Pradeep
From India, Hyderabad
From India, Hyderabad
Hi Guys,
I am bit mistaken. For what i know the gross and CTC means the same. Its the cost the company bears to hire you. It includes the Salary take home( also called NET salary or inhand salary)+all deductions like PF,gratuity, transport, meal,+reimbursement(telephone, driver wages, company car and accommodation which adds up to perks and benefits).
I may be wrong so please help me clear it.
Nidhi: FNF's are done for both resignation and termination cases. After Fnf's only we get an employees payout or recovery. which if its a payout no due certi is given by finance to employee and after taking the copy of it u give away the relieving letter or experience letter and if its recovery and if the employee pays the recovery amount to finance then again the same procedure is followed. Only in Job abandonement and misconduct case we shouldn't give out the relieving letter.
FnF include: amount for notice period served+any earned leaves(PL)+any security taken for some services- amount for no. of days fall in notice period-bond amount if applicable-any dues to the company.
Hope i covered most of the points. Please correct me where i m wrong.
best Regards
Farid :lol: :lol: :P :P
From India, New Delhi
I am bit mistaken. For what i know the gross and CTC means the same. Its the cost the company bears to hire you. It includes the Salary take home( also called NET salary or inhand salary)+all deductions like PF,gratuity, transport, meal,+reimbursement(telephone, driver wages, company car and accommodation which adds up to perks and benefits).
I may be wrong so please help me clear it.
Nidhi: FNF's are done for both resignation and termination cases. After Fnf's only we get an employees payout or recovery. which if its a payout no due certi is given by finance to employee and after taking the copy of it u give away the relieving letter or experience letter and if its recovery and if the employee pays the recovery amount to finance then again the same procedure is followed. Only in Job abandonement and misconduct case we shouldn't give out the relieving letter.
FnF include: amount for notice period served+any earned leaves(PL)+any security taken for some services- amount for no. of days fall in notice period-bond amount if applicable-any dues to the company.
Hope i covered most of the points. Please correct me where i m wrong.
best Regards
Farid :lol: :lol: :P :P
From India, New Delhi
Farid, To understand the difference between CTC & Gross, you may pl. refer Murali’s reply to it. at high level CTC = Gross + Deductions Good Day, Pradeep
From India, Hyderabad
From India, Hyderabad
CTC is cost to the company that describes the total amount per annum. Gross is total employee take home after deduction of all benefits and other deduction.
When a person leaves the company, its responsible is to settle all the payment of the employee. For example any person leaves the company in middle of the month then he will be getting the half month salary. When he leaves he takes with him/her the total amount, the termination benefit if applicable, etc. [/color][/b]
From India, Bangalore
When a person leaves the company, its responsible is to settle all the payment of the employee. For example any person leaves the company in middle of the month then he will be getting the half month salary. When he leaves he takes with him/her the total amount, the termination benefit if applicable, etc. [/color][/b]
From India, Bangalore
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Full n final settlement.doc