Gratuity, resignation and termination pay under the Bangladesh Labour Act as amended 2026
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 10 Oct 2026.Under the Bangladesh Labour Act as amended in 2026, a permanent worker who resigns gets 7 days' basic wage for each complete year with up to 3 years of service, 15 days with over 3 and under 10 years, and 30 days from 10 years. On a 30,000 taka basic, 5 years of service gives 75,000 taka.
Rates and rules read from the sources listed on this page (the earliest on 10 Oct 2026); they may have changed since.
Tap how the job ended: resignation, termination, retrenchment, discharge, dismissal, retirement or death.
Type the last monthly basic wage with dearness allowance, or tap an example.
Enter the years and months of service and whether you were a permanent worker paid by the month.
Turn on gratuity if your employer pays it, then read the compensation, gratuity and notice pay line by line.
This calculator works out what a worker is owed when a job ends under the Bangladesh Labour Act 2006, as amended by the Bangladesh Labour (Amendment) Act 2026: compensation for resignation, termination, retrenchment, discharge, dismissal, retirement or death, gratuity where the employer pays it, and wages for notice not given.
The wage it uses. Section 14 says these sums are counted on the last monthly basic wage and dearness allowance, plus any ad hoc or interim wage; house rent and other allowances are left out. The Act sets no divisor for a day's wage, so the calculator uses the monthly wage divided by 30 and says so.
Resignation after the 2026 amendment. A permanent worker who resigns gets, for each complete year, 7 days' wages with up to 3 years of service, 15 days with more than 3 and less than 10 years, and 30 days with 10 years or more (section 27). A temporary worker gets none.
Termination, retrenchment, discharge, retirement. A permanent worker terminated by the employer gets 120 days' notice, or wages instead, and 30 days' wages for each complete year (section 26). Retrenchment and discharge pay 30 days a year after at least a year; retirement at 60 is paid as under section 26.
Dismissal and death. A worker dismissed for misconduct gets 15 days' wages a year, nothing for theft, fraud, riot or arson. On a death after more than a year, the nominee gets 30 days' wages a year, 45 for a death at work.
Gratuity. Where the employer pays gratuity, it is at least 30 days' wages for every year or part above six months, 45 days after 10 years (section 2(10)), and the worker gets the larger amount. Everything is due within 30 working days (section 30).
For monthly pay and tax, use the Bangladesh Salary Calculator and the Bangladesh Income Tax Calculator; Taka to Words writes the amount for a cheque.
A permanent worker who resigns gets, for each complete year of service, 7 days' basic wage with up to 3 years of service, 15 days with more than 3 and less than 10 years, and 30 days from 10 years, under section 27 of the Labour Act as amended in 2026.
Gratuity is at least 30 days' wages at the last wage rate for every completed year of service or part above six months, and 45 days' wages a year once service is more than 10 years, under section 2(10). A worker gets gratuity or the compensation, whichever is more.
Section 26 requires 120 days' written notice for a permanent worker paid by the month and 60 days for other permanent workers, or wages for the notice period instead. A permanent worker also receives 30 days' wages for each complete year of service, or gratuity if higher.
Section 14(3), as replaced in 2026, uses the last monthly basic wage and dearness allowance, plus any ad hoc or interim wage. House rent, medical and conveyance allowances are not counted, so a 30,000 taka gross salary with an 18,000 basic is counted at 18,000.
A worker dismissed or removed for misconduct after at least a year of service gets 15 days' wages for each complete year under section 23(3). Dismissal for theft, embezzlement, fraud, riot or arson carries no compensation, though unpaid wages and other lawful dues are still owed.
Section 30 of the Labour Act requires the employer to pay all of a worker's dues within 30 working days after the job ends, whether by retirement, discharge, retrenchment, dismissal or termination. Compensation, gratuity, notice pay and unpaid wages are all included.
Rates and rules change; check the source before you rely on a figure.
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