Bangladesh Gratuity & Service Benefit Calculator (Labour Act)

About the Bangladesh Gratuity & Service Benefit Calculator (Labour Act)

Work out what you are due when a job in Bangladesh ends, under the Bangladesh Labour Act, 2006 with its amendments up to the Bangladesh Labour (Amendment) Act, 2026. Choose why the job ends (you resign, the employer terminates or retrenches you, you are discharged for ill health, you retire, a worker dies in service, or a dismissal for misconduct), enter your last monthly wage and your years of service, and see the compensation or service benefit of that section, the gratuity where one is payable (whichever is higher is paid), wages for notice not given, the extra after a lay-off and pay for unused annual leave.

The calculator follows the Act’s own wording: the wage for compensation and notice is the last monthly basic wage with dearness allowance and any ad-hoc or interim wage (section 14), a year of service is 240 days actually worked in 12 months, and each benefit is measured in days’ wages. It shows how every amount is worked out, with the section it comes from. Nothing you type leaves your browser. Without a pass the page shows a free preview of your own result: the total due on leaving, with the first rows of the breakdown, while every other figure stays hidden until you unlock it with a Pro pass.

Resignation

A permanent worker resigns with 60 days’ written notice; a temporary worker with 30 days (paid monthly) or 14 days. Without the notice, the worker pays the employer wages for the notice period (section 27). Section 27(4), as replaced by the Labour (Amendment) Act, 2026, then pays compensation for each completed year of service: 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, or the gratuity if one is payable, whichever is higher.

Termination, retirement, retrenchment and discharge

• Termination by the employer for a reason other than misconduct (section 26): 120 days’ notice for a permanent worker paid monthly, 60 days for others (30 or 14 days for temporary workers), or wages for the notice period; a permanent worker gets 30 days’ wages for each completed year, or the gratuity if higher.
• Retirement at 60 (section 28): the same 30 days a year under section 26(4), or what the establishment’s own service rules give. A worker who retires by choice after completing 25 years of service in the establishment counts as retired too (section 2(1)).
• Retrenchment of a post no longer needed (section 20): after a year of service, one month’s written notice with the reason, or wages for it, and 30 days’ wages for each year of service, or the gratuity if higher. A worker retrenched instead of a further lay-off of 15 days or more, after the first 45 days of lay-off in a calendar year (section 16(7)), needs no notice but gets 15 days’ wages more.
• Discharge for physical or mental incapacity or continued ill health certified by a registered doctor (section 22): after a year of service, 30 days’ wages for each year, or the gratuity if higher.

Death in service and dismissal for misconduct

When a worker dies after more than one year of continuous service, the employer pays the nominee, or a dependant, 30 days’ wages for each completed year or part of a year over six months, or 45 days’ wages if the death happened at work or later from an accident at work, or the gratuity if higher, on top of the retirement benefits the worker would have had (section 19).

A worker dismissed or removed for misconduct after at least a year of service gets 15 days’ wages for each completed year, except for misconduct of theft, embezzlement, fraud or dishonesty, or of disorder, rioting, arson or vandalism, which gets none; other lawful dues are still paid (section 23).

Gratuity, the wage and a year of service

Section 2(10) defines gratuity as at least 30 days’ wages, or 45 days’ wages for service of more than 10 years, at the last wage rate, for each completed year of service or part of a year over six months. Each benefit above is paid “or gratuity, if payable, whichever is higher”: a gratuity is payable where your employer’s gratuity scheme, service rules or contract give one, and it replaces the compensation when it is more.

For the compensation of these sections and for notice pay, the wage is the last monthly basic wage, dearness allowance and ad-hoc or interim wage, if any (section 14); the gratuity is worked out on the last wage rate, and you can enter the wage your gratuity scheme or service rules count if it is another. A worker who actually worked 240 days in the 12 months before counts as having a year of service, and 120 days in 6 months as six months; lay-off days, leave for illness or an accident, days of a legal strike or an illegal lock-out and up to 120 days of maternity leave count as days worked. Unused annual leave is paid in wages (section 11), and everything due is paid within 30 working days after the job ends (section 30).

Limitations

• For workers under the Labour Act. It does not apply to government offices, domestic workers, seafarers, farms with fewer than five workers, non-profit education and research institutions and the other exclusions of section 1; a manager or administrator given those duties in writing counts as the employer, not a worker.
• The Act measures each benefit in days’ wages; the calculator divides the monthly wage by 30, so 30 days’ wages equal a month’s wage. If your contract or service rules use another divisor, set it.
• A gratuity scheme, a contract, a collective agreement or service rules may give more than the Act’s minimum; enter the gratuity days a year they give.
• Provident fund balances and any amounts you owe the employer (other than notice) are not included.
• Income tax on what you receive is not worked out: compensation on leaving is income from employment, while a gratuity paid from the Government Gratuity Fund or an approved gratuity fund is tax-free up to Tk 2.5 crore (Income Tax Act, 2023, Sixth Schedule, Part 1). The Bangladesh Income Tax Calculator works out the tax for the year.

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