Section 17(2) of the Code on Wages 2019, in force since 21 November 2025, requires final wages to be paid within two working days of the last day of work. Gratuity keeps its 30 day window, and bonus follows the accounting year. Offrd works out each component from payroll data and itemises it in one settlement document, with 19 standard deduction heads and 13 exit specific payouts. Setup takes under 2 minutes.
Effective 21 November 2025, the old 30 to 45 day window is no longer the standard for wage payments.
Most Indian companies took 30 to 45 days, and often longer, to settle final dues. Some stretched to 90. There was no enforceable hard deadline for wage settlement specifically.
Section 17(2) of the Code on Wages 2019 is now enforceable. Final wages must be paid within two working days of the employee's last day, covering all separations: resignation, termination, retrenchment, and retirement.
The 2-day mandate clearly covers earned wages and final salary. Gratuity retains its 30-day timeline. Bonus follows the accounting year. Pending government clarification, your F&F documentation should itemise these components with separate stated timelines, not one aggregate date. Treating everything as a single 2-day obligation may be overstated, but treating wages as exempt from it is non-compliant.
Every document and every payment component that belongs in a compliant F&F settlement under Indian labour law.
Offrd keeps the F&F calculations, documents, and clearance steps together so the HR team does not have to manage them across separate spreadsheets.
Generate separation and relieving letters from templates that cover the required Indian employment details.
Pro-rated salary, leave encashment, gratuity eligibility, and deductions all calculated from your existing employee data. No manual arithmetic.
Route no-dues clearance across IT, admin, and finance simultaneously. No more waiting on email threads to collect signatures one by one.
Auto-generate a component-wise F&F letter with separate timelines for wages, gratuity, and bonus. Exactly what the new Labour Code expects.
Track PF transfer and withdrawal forms alongside the rest of the settlement. Keep every statutory document in one auditable record.
The settlement screen shows the separation date, the 2 day wage window under the Code on Wages and the 30 day gratuity window under the Payment of Gratuity Act, so the person running the exit can see what is due and when.
Answers to common questions about F&F settlement.
Get ahead of it with Offrd. Setup takes under 2 minutes and pricing starts at ₹99.
What is the timeline for Full and Final Settlement under the new Labour Code?
Under Section 17(2) of the Code on Wages 2019, effective 21 November 2025, wages must be settled within two working days of an employee's last working day. Gratuity has a separate 30-day timeline, and bonus follows the applicable accounting year.
What does Full and Final Settlement documentation in India include?
F&F documentation must include an itemized settlement letter, relieving letter, experience letter, Form 16 or TDS certificate, PF transfer or withdrawal forms, no-dues certificate, and a breakdown of all payables and deductions including last salary, leave encashment, gratuity, bonus, and reimbursements.
Does the 2-day rule cover gratuity?
The 2-day rule under the Code on Wages covers earned wages and final salary. Gratuity retains a separate 30-day timeline under the Payment of Gratuity Act. Pending government clarification, it is prudent to treat wage components and statutory components with separate timelines in your F&F documentation.
