Get an instant, policy-ready estimate without spreadsheets.
Estimate employee final settlement amount quickly.
This calculator is built for practical HR and payroll workflows and gives instant outputs.
Yes. You can use this Timetaag tool without registration.
Yes. Use it for quick validations before final payroll processing.
A final settlement is the complete financial closure between an employer and a departing employee. Unlike a regular payslip, it must consolidate every outstanding obligation into one legally compliant payment. Using a salary calculator and net pay calculator in tandem with a final settlement tool ensures nothing is missed — and nothing is paid twice.
A final settlement covers all amounts owed to the employee from the day after the last payroll period through to the last working day — plus any statutory obligations accumulated over the entire employment. The deduction calculator component is equally important: loans, salary advances, and notice shortfalls must be offset against the gross entitlement.
| Deduction Item | Typical Basis | Payable By |
|---|---|---|
| Salary advance / loan balance | Remaining principal per HR records | Employee |
| Notice period shortfall | Days not served × daily salary rate | Employee |
| Overpaid leave | Days taken in excess of entitlement | Employee |
| Company property not returned | Depreciated or replacement value | Employee |
| Training bond (if applicable) | As per training agreement | Depends on contract |
Net Final Settlement = Gross Entitlements − Total Deductions
Gross Entitlements = Partial Month Salary + Gratuity + Leave Encashment + Notice Pay + Bonuses
Example: AED 5,000 + AED 18,000 + AED 2,400 + AED 0 = AED 25,400 gross
Less deductions: AED 2,000 loan balance → Net settlement: AED 23,400
Missing the payment deadline is a compliance risk with direct financial and legal consequences. HR must track the last working day and build the settlement well in advance.
Enter the employee's details above to calculate gross entitlements, deductions, and net payout in one step.
The end-of-service benefit (EOSB) is the statutory gratuity component. The final settlement is the comprehensive document that covers all financial obligations at exit — including the EOSB, partial month salary, leave encashment, and deductions. The final settlement is always broader than the EOSB alone.
Most labor laws prohibit indefinite withholding of final settlement. In the UAE, the employer may delay processing until the exit clearance is complete, but must still meet the 14-day statutory deadline. Withholding beyond the legal timeline can result in wage protection system (WPS) violations and fines.
Daily salary is typically calculated as: Monthly Salary ÷ 30 (UAE, Saudi — calendar days) or Monthly Salary ÷ 26 (India — working days). This daily rate is used for partial month salary, leave encashment, and notice period shortfall deductions. The divisor matters — always confirm the jurisdiction's rule.
No. A severance package typically refers to additional compensation offered to an employee beyond their statutory entitlements — often as part of a mutual separation agreement or redundancy package. Final settlement covers statutory minimums. Severance is anything offered above and beyond that floor.
Disclaimer: This calculator is for informational purposes only and does not constitute legal or financial advice. We do not guarantee the accuracy or completeness of the results. Please consult a qualified professional for advice specific to your situation.