Dears
Can u give me some idea of Full & Final Settlement .
I want to know if i do FFS which amt is add & which amount is deducted.
Pl send me one of the standard format of FFS for giving example.
& How the gratuity is calculate or from which day from his joining date,or confirmation date.
From India, Mumbai
6Can u give me some idea of Full & Final Settlement .
I want to know if i do FFS which amt is add & which amount is deducted.
Pl send me one of the standard format of FFS for giving example.
& How the gratuity is calculate or from which day from his joining date,or confirmation date.
From India, Mumbai
Hi,
Full & Final settlemnet will include salary payable for the days the person has worked. Also other than salary components like Fuel reimbursement ( as per eligibility if the proper supporting are provided). Also leave encashment and Gratuity and also bonus if it is a part of CTC.
In deduction there will be PF, ESIC, PT as per applicability, and TDS ( if any) and any other recovery such as Loan , aAdvance etc.
Gratuity becomes applicable after completion of five years of continous service. Five years are calculated from date of joining.
For any query do write to me
Regards,
Enjoy,
Harshad
From India, Mumbai
Full & Final settlemnet will include salary payable for the days the person has worked. Also other than salary components like Fuel reimbursement ( as per eligibility if the proper supporting are provided). Also leave encashment and Gratuity and also bonus if it is a part of CTC.
In deduction there will be PF, ESIC, PT as per applicability, and TDS ( if any) and any other recovery such as Loan , aAdvance etc.
Gratuity becomes applicable after completion of five years of continous service. Five years are calculated from date of joining.
For any query do write to me
Regards,
Enjoy,
Harshad
From India, Mumbai
Hi !
a) Full & Final settlement - includes the following -
unpaid salary less notice period not served
Encashment of Unavailed LTA
Encashment of balance PL
Gratuity payment
Superannuation payment-if claimed and as per procedure
Processing of PF transfer forms / PF settlement
Recovery of deductions for the last month, if any
Recovery of pending loans or any other pending amounts to the Company
b) Gratuity calculation:
Eligibility - 15 days for every completed year of service.
For computing completed years of service - take period from date of joining till date of resignation. Period in excess of 6 months to be rounded off to the higher year - For example - 15 years 7 months to be rounded off to 16 years.
Calculation:
(Basic salary / 26) x (Completed years x 15)
Thus a person with basic Rs.10,000 and 10 years completed will get gratuity as -
(10,000/26) x (10x15) = Rs.57,692/-
Regards
P.Arun Kumar
From India, Bangalore
a) Full & Final settlement - includes the following -
unpaid salary less notice period not served
Encashment of Unavailed LTA
Encashment of balance PL
Gratuity payment
Superannuation payment-if claimed and as per procedure
Processing of PF transfer forms / PF settlement
Recovery of deductions for the last month, if any
Recovery of pending loans or any other pending amounts to the Company
b) Gratuity calculation:
Eligibility - 15 days for every completed year of service.
For computing completed years of service - take period from date of joining till date of resignation. Period in excess of 6 months to be rounded off to the higher year - For example - 15 years 7 months to be rounded off to 16 years.
Calculation:
(Basic salary / 26) x (Completed years x 15)
Thus a person with basic Rs.10,000 and 10 years completed will get gratuity as -
(10,000/26) x (10x15) = Rs.57,692/-
Regards
P.Arun Kumar
From India, Bangalore
Hi
regarding ur querry of format u can prepare ur own .On the top u can give name of employee, designation, department, date of appointment and date of leaving and salary break up. after drawing a line of seperation , under the heading Earnings on the left side of sheet and on the right side deductions. In earnings u have to shows his salary payable and In bracket no of days u require to pay (gross salary) ie without deductions
His other benifits like leave encashment, bonus if payable and any allownaces or reimbersments are paid( ensure that for reimbersment his bills are must) and gratuity. take the total and mention as gross earnings and after that on the right under heading of deduction calculate pf on the amt earned for the days worked. (calculate pf on basic and da or vda if applicable) Esi if it is there, any advances(loans) are there then take total of all deductions and mention as gross deductions
After that show Net payable in Terms of Rs. and in words also.
after that write like this
HR MANAGER ACCOUNTS MANAGER CEO DIRECTOR
in this they have sign after verifying
after that you have to write as;
I ............(name of Employee) hereby by state that i have received a cheque bearing No...... for Rs. ( Rupees ............. only) against the full and final settlement. I also state that there are no other dues pending from the Management of ..............( name of ur organization)
Signature of Employee
regarding ur other querry for calculation of gratuity date of joining or appointment, you have see from the date employee deduction started like pf esi etc. the formula for leave encashment is basic +da divided by 26 and mulitply by no of leaves in balance. and for grautity it is basic+da mulitply by and divded by 26 and mulitply by number of years worked. for grauity minimum employee should have worked for 5 years and atleast 240 days in every year. in case a employee and worked for more than 5 years then u have to keep in mind of 6 months criteria. for example if person doa is 1jan 2001 and leaves on 02 july2006 u have to pay the gratuity for 6 years .
I hope it will clear ur all doubts if further any get in touch on my id
best wishes
M.Prabhakar Rao
Head -HR
From India, Delhi
regarding ur querry of format u can prepare ur own .On the top u can give name of employee, designation, department, date of appointment and date of leaving and salary break up. after drawing a line of seperation , under the heading Earnings on the left side of sheet and on the right side deductions. In earnings u have to shows his salary payable and In bracket no of days u require to pay (gross salary) ie without deductions
His other benifits like leave encashment, bonus if payable and any allownaces or reimbersments are paid( ensure that for reimbersment his bills are must) and gratuity. take the total and mention as gross earnings and after that on the right under heading of deduction calculate pf on the amt earned for the days worked. (calculate pf on basic and da or vda if applicable) Esi if it is there, any advances(loans) are there then take total of all deductions and mention as gross deductions
After that show Net payable in Terms of Rs. and in words also.
after that write like this
HR MANAGER ACCOUNTS MANAGER CEO DIRECTOR
in this they have sign after verifying
after that you have to write as;
I ............(name of Employee) hereby by state that i have received a cheque bearing No...... for Rs. ( Rupees ............. only) against the full and final settlement. I also state that there are no other dues pending from the Management of ..............( name of ur organization)
Signature of Employee
regarding ur other querry for calculation of gratuity date of joining or appointment, you have see from the date employee deduction started like pf esi etc. the formula for leave encashment is basic +da divided by 26 and mulitply by no of leaves in balance. and for grautity it is basic+da mulitply by and divded by 26 and mulitply by number of years worked. for grauity minimum employee should have worked for 5 years and atleast 240 days in every year. in case a employee and worked for more than 5 years then u have to keep in mind of 6 months criteria. for example if person doa is 1jan 2001 and leaves on 02 july2006 u have to pay the gratuity for 6 years .
I hope it will clear ur all doubts if further any get in touch on my id
best wishes
M.Prabhakar Rao
Head -HR
From India, Delhi
dear all,
i had one query regarding Leave encashment in full and final settlement, suppose the employee who has resigned had 40 balance leave then while calculating F&F settlement :
1. what will be the formula of calculating the leave amount.
basic/30 x 40 or basic /26 x 40 or gross to be taken in place of basic?
2. do we need to deduct PF from the leave encashment amt. also ?
3. then what is the procedure and formula of PF caln & deduction for example basic is 8000/- and allowances are 3000/- and balance leave are 40 , in this case what will be the leave amount and PF amount.
looking for help from members.
thanx
Nishant
From India, Bicholim
i had one query regarding Leave encashment in full and final settlement, suppose the employee who has resigned had 40 balance leave then while calculating F&F settlement :
1. what will be the formula of calculating the leave amount.
basic/30 x 40 or basic /26 x 40 or gross to be taken in place of basic?
2. do we need to deduct PF from the leave encashment amt. also ?
3. then what is the procedure and formula of PF caln & deduction for example basic is 8000/- and allowances are 3000/- and balance leave are 40 , in this case what will be the leave amount and PF amount.
looking for help from members.
thanx
Nishant
From India, Bicholim
Hi Nishant
The calculation for leave encashment is Basic+da( if da or vda is applicable) divided by 26 and multiply by no of leaves. in your case it's 8000/26*40days=Rs.12308.00
Always basic is taken for leave encashment , calculation of gratuity.
The Pf calculation will be as normal 12% of basic from Employee ie Rs.960/- and 12% contribution from employer on Rs6500/- that will be Rs.780/- , Rs 541 goes to pension account(8.33%) and remaining goes to employees acount ie 3.67%that is Rs239/-
Regarding pf deduction on leave encashment it is nil.
calculation of gratuity is like this basic*15/26*no of yrs of contribution.
For gratuity it should be atleast 5 yrs of continues service.
I hope ur doubts are cleared in case any other issues get in touch
rgds and be 8)
Prabhakar Rao.M
Head- HR
From India, Delhi
The calculation for leave encashment is Basic+da( if da or vda is applicable) divided by 26 and multiply by no of leaves. in your case it's 8000/26*40days=Rs.12308.00
Always basic is taken for leave encashment , calculation of gratuity.
The Pf calculation will be as normal 12% of basic from Employee ie Rs.960/- and 12% contribution from employer on Rs6500/- that will be Rs.780/- , Rs 541 goes to pension account(8.33%) and remaining goes to employees acount ie 3.67%that is Rs239/-
Regarding pf deduction on leave encashment it is nil.
calculation of gratuity is like this basic*15/26*no of yrs of contribution.
For gratuity it should be atleast 5 yrs of continues service.
I hope ur doubts are cleared in case any other issues get in touch
rgds and be 8)
Prabhakar Rao.M
Head- HR
From India, Delhi
Dear all
i would request all the seniours anyone help me what are the compesation will be saved under tax payable . as a HR manager say like FOOD card it will show under speial allowance like wise any benifits to employee please mail me this is very urgently i want make new salary structure to our comapny. company it is in MNC i have to make well compesation pay roll.
Thanks & Regards
Yogeesh S.T
From India, Bangalore
i would request all the seniours anyone help me what are the compesation will be saved under tax payable . as a HR manager say like FOOD card it will show under speial allowance like wise any benifits to employee please mail me this is very urgently i want make new salary structure to our comapny. company it is in MNC i have to make well compesation pay roll.
Thanks & Regards
Yogeesh S.T
From India, Bangalore
Request you to please advice.
one of our employee had resigned 8 yrs back. He had worked for 1 yr, during this period we had deducted some amount towards Medical Allowance , LTA and others from his salary.Now he is asking us to refund the same amount. Please let me know as per labour law, should we have to reimburse the same.
Thanks,
From India, Maisuru
one of our employee had resigned 8 yrs back. He had worked for 1 yr, during this period we had deducted some amount towards Medical Allowance , LTA and others from his salary.Now he is asking us to refund the same amount. Please let me know as per labour law, should we have to reimburse the same.
Thanks,
From India, Maisuru
Name
Designation
DepartmentDirector's
NameCompany
Joining Date
Releving Date
TGS - Current Month
No of Days (Salary days + Old PL)
BASIC
GROSS
PF
ESIC
PT
Net Salary
TGS - Previous Month
No of Days (Salary days + leaves)
BASIC
GROSS
PF
ESIC
PT
Net Salary
CommimentI
ncentive for Current Month
Incentive for Previous Month
Shift Allowance Current Month
Shift Allowance Previous Mt
Six monthly incentive
Bouns
Special Inc./Performance Bonus
Arrears
Leave Salary
Referral Amount
1 MONTH NOTICE PAID TO EMPLOYEE
Total Payable
Recoverable
Total
From India, Ahmadabad
Designation
DepartmentDirector's
NameCompany
Joining Date
Releving Date
TGS - Current Month
No of Days (Salary days + Old PL)
BASIC
GROSS
PF
ESIC
PT
Net Salary
TGS - Previous Month
No of Days (Salary days + leaves)
BASIC
GROSS
PF
ESIC
PT
Net Salary
CommimentI
ncentive for Current Month
Incentive for Previous Month
Shift Allowance Current Month
Shift Allowance Previous Mt
Six monthly incentive
Bouns
Special Inc./Performance Bonus
Arrears
Leave Salary
Referral Amount
1 MONTH NOTICE PAID TO EMPLOYEE
Total Payable
Recoverable
Total
From India, Ahmadabad
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Full n final settlement.doc