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Full F&F settlement — gratuity, PF & leave with tax breakdown
Rs 2,88,462
2.88 L
Formula: (15 x salary x years) / 26. Max exempt: Rs 20L
Rs 30,67,376
30.67 L
Interest rate: 8.15% p.a. | PF is tax-free after 5 years
Rs 50,000
50,000
Formula: (Basic + DA) / 30 x leave days. Max exempt: Rs 25L
Total Package
Rs 34,05,838
34.06 L
Tax Exempt
Rs 34,05,838
34.06 L
Taxable
Rs 0
0
Breakdown
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When leaving an employer, your total settlement includes three separate legal entitlements governed by distinct statutes: gratuity under the Payment of Gratuity Act 1972, EPF accumulation under the EPF Act 1952, and leave encashment under your employment contract. Each has a different formula, different exemption limits, and different tax treatment. This calculator computes all three simultaneously so you have a clear picture of your total exit package before you resign.
Gratuity is calculated using the statutory formula: (15 × last drawn Basic + DA × years of service) / 26. The 26-day divisor reflects the average working days in a month under the Act. Service is rounded up if more than 6 months have been completed in the final year. The maximum exempt amount is Rs 25 lakh as per the 2024 amendment.
PF accumulation is modelled using the current EPF interest rate of 8.15% per annum compounded annually on the employee and employer contributions (12% each of basic), minus the EPS portion (8.33% of basic routed to Employees Pension Scheme). Year-wise balance is shown in the results table.
Leave encashment exemption follows the four-pronged minimum test under Section 10(10AA): actual amount, 10 months' average salary, 30 days per year of service, or Rs 25 lakh — whichever is lowest. The excess is shown as taxable in the summary.
A 12-year employee at a private IT firm resigning to join a startup, wanting to know total gratuity + PF before negotiating the joining date.
A mid-career professional comparing two job offers where one includes PF and gratuity and the other does not.
An HR manager calculating F&F settlement for a departing employee and verifying the gratuity amount before raising the final settlement letter.
An employee who completed exactly 4 years 8 months checking if rounding rules make them eligible for gratuity (they are — 6+ months rounds up to 5 years).
Scope note: Uses the 26-day divisor for private sector gratuity under the Payment of Gratuity Act 1972. Government employees and those in establishments not covered by the Act may use different formulas. EPF accumulation uses the FY 2024-25 rate of 8.15% and assumes consistent contributions throughout service. Actual PF balance may differ due to gaps in employment or employer-specific PF trust rates.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Results are estimates based on publicly available tax slabs and formulas. Consult a qualified Chartered Accountant, tax professional, or financial advisor for guidance specific to your situation. Built and maintained by the WOWHOW Team with 14+ years of software development experience.
Enter your last drawn basic salary + DA and years of service
Add your leave balance and PF contribution percentages
View three result cards — Gratuity, PF Accumulation, and Leave Encashment
Check the tax summary to see how much is taxable vs exempt
About the Gratuity + PF + Leave Calculator
Gratuity = (15 x last drawn salary x years of service) / 26. You must have completed at least 5 years of service. Maximum tax-exempt amount is ₹20 lakh.
The current EPF interest rate of 8.15% per annum is used for PF accumulation estimates. This rate is set by the government annually.
Tax exemption is the minimum of: (a) actual amount received, (b) 10 months average salary, (c) 30 days per year of service, (d) ₹25 lakh. Only the excess is taxable.
This calculator uses private sector formulas (26-day divisor for gratuity). Government employees use a 30-day divisor, which gives a slightly different result.
There is no legal cap on EPF accumulation, but Budget 2021 introduced a tax on EPF interest above Rs 2.5 lakh/year for employee contributions and Rs 5 lakh/year where the employer also contributes. PF corpus grows at the EPF interest rate (8.15% for FY 2024-25) compounded annually.
Partial PF withdrawal is allowed for specific purposes: house purchase (after 5 years), marriage (after 7 years), medical emergency (any time), and education (after 7 years). Full withdrawal is only allowed on resignation after 2 months of unemployment or on retirement at age 58.
For private sector employees covered under the Payment of Gratuity Act, the tax-exempt amount is the minimum of: actual gratuity received, Rs 20 lakh (now Rs 25 lakh post-2024 amendment), or the statutory formula amount. The excess over the exempt limit is added to taxable income in the year of receipt.
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