Define the unpaid salary period
Start from the day after the last paid payroll period and end on the last day for which salary is due. Include approved paid days and identify any unpaid absence separately.
Ask for the employer's daily-rate convention
Payroll systems may use a contractual or policy-based daily rate. Do not silently substitute the gratuity daily rate because the calculations serve different purposes.
Check allowances and fixed payments
Confirm whether fixed monthly allowances continue through the final paid period and whether any amount was already included in the previous payroll.
Reconcile with the bank statement
Use payslips and bank credits to avoid counting the same salary twice or omitting a period that was paid early.
Questions to ask HR or payroll
- What date did the last payslip cover?
- Which days in the final period are paid?
- Which allowances continue for the partial month?
- Was any amount paid outside normal payroll?
- What daily rate did payroll use?
Frequently asked questions
Is final salary calculated using the gratuity daily rate?
Not necessarily. Ask the employer which payroll convention applies and keep it separate from gratuity.
Should weekends be counted?
That depends on the salary and payroll method. Request the written calculation rather than assuming a working-day formula.
Can unused leave replace final salary days?
Only if leave was actually approved or recorded that way. Salary and leave encashment should not be blended without explanation.
Official sources used
Rules can change and facts can be disputed. Review the source that applies to your jurisdiction and current circumstances.