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New Rule: Final Salary Payout Within 2 Days of Quitting Your Job Explained
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New Rule: Final Salary in 2 Days After Quitting Job From April 2026
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News18
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26-03-2026, 09:30
New Rule: Final Salary in 2 Days After Quitting Job From April 2026
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From April 1, 2026, companies must complete full and final (F&F) settlement within two working days of an employee's last day.
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This new rule, part of India’s labor code reforms, applies to all separations including resignation, termination, and layoffs.
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It aims to ensure faster disbursal of dues like pending salary, leave encashment, and bonuses, improving financial planning for employees.
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Previously, F&F settlements often took weeks or months, causing financial disruption during career transitions.
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Companies will need to overhaul internal systems, automate processes, and streamline exit workflows to comply with the tighter two-day deadline.
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