Gratuity in Bangladesh: Rules and Calculation 2026

Gratuity in Bangladesh: how it is calculated

Under section 2(10) of the Bangladesh Labour Act 2006, gratuity is at least 30 days' wages for each completed year of service, or part of a year over six months, and 45 days' wages a year when service exceeds 10 years. It is paid only where the employer has a gratuity scheme, and you receive the gratuity or the exit benefit, whichever is higher.

Gratuity calculator

How is gratuity calculated?

days per year × gratuity years × one day’s wage

Days per year: 30, or 45 when total service is more than 10 years.
Gratuity years: completed years, plus one more if the extra part is over six months.
One day’s wage: monthly basic plus dearness allowance, divided by 30.

When is gratuity paid instead of the exit benefit?

For resignation from 10 years, termination, retrenchment, discharge and retirement, the Act says the worker gets the benefit or gratuity, whichever is higher. You do not get both.

Do I need a minimum service?

You need at least one completed year. With 1 year and 7 months, gratuity counts 2 years because the extra 7 months is over six.

Does dismissal cancel gratuity?

Dismissal for misconduct pays 15 days’ wages a year under section 23, and nothing for theft, fraud, riot, arson or similar. Many contracts also cancel gratuity on dismissal. Read yours.

How is gratuity taxed?

If the gratuity comes from a fund approved by NBR, it is tax free up to 2.5 crore. If the company pays it from its own account, it is taxed as salary. Ask HR which applies; it can change your take-home by tens of thousands.

৳ 1,000 a day (basic ৳ 30,000 a month). A part year over six months counts as a year.
Service	Days × years	Gratuity
1 yrs 7 mo	30 × 2	৳ 60,000
3 yrs 6 mo	30 × 3	৳ 90,000
7 yrs 0 mo	30 × 7	৳ 2,10,000
10 yrs 6 mo	45 × 10	৳ 4,50,000
12 yrs 6 mo	45 × 12	৳ 5,40,000

৳ 1,000 a day (basic ৳ 30,000 a month). A part year over six months counts as a year.

Service

Days × years

Gratuity

1 yrs 7 mo

30 × 2

৳ 60,000

3 yrs 6 mo

30 × 3

৳ 90,000

7 yrs 0 mo

30 × 7

৳ 2,10,000

10 yrs 6 mo

45 × 10

৳ 4,50,000

12 yrs 6 mo

45 × 12

৳ 5,40,000

Frequently asked questions

Is gratuity compulsory in Bangladesh?

The Act defines gratuity and says it replaces the exit benefit when higher, but it applies where a gratuity scheme exists. Many employers have one; check your appointment letter or service rules.

Is gratuity taxed?

Gratuity from an NBR-approved gratuity fund is tax free up to 2.5 crore taka. Gratuity paid directly by the employer is taxed as salary.