Tax return deadline: 31 December 2026File for 2026-27 by then with no extra tax.
Termination and retrenchment calculator
A permanent worker terminated without misconduct gets 30 days' wages for each completed year, or gratuity if that is higher, under section 26(4). The employer must give 120 days' notice or pay wages in lieu (section 26(3)). Retrenchment under section 20 also pays 30 days a year, with one month's notice or pay.
Last checked 12 November 2026 · Estimate, not legal or tax advice.
Estimated final settlement
Estimated final settlement: ৳ 0
Must be paid by about 24 December 2026
30 working days, Fri and Sat skipped, holidays not counted
Your details
Leave 0 if your payslip has none. Benefits use basic + this, not gross.
days
Law asks for 120 days (monthly paid).
days
days
Where the number comes from
Your settlement will appear here
Start with your monthly basic and how long you worked. Nothing you type leaves this phone.
Under 1 completed year: the Act gives no service benefit for this exit.
Tax: benefit, notice pay and leave encashment are taxable as salary. Gratuity from an NBR-approved fund is tax free up to 2.5 crore.
Open point: the Act does not fix the divisor for a day's wage. 30 is common practice; some use 26.
Creates a link with your figures in it. Only made when you tap.
Tips that change the number
- Mind the 3-year stepResign at 3 years and you get 7 days a year. A month later it is 15 days a year.
- Benefits run on basic payA low basic means a low settlement, however big the gross is.
- Ask if the gratuity fund is approvedFrom an NBR-approved fund it is tax free. Paid from company cash it is taxed.
- 30 working daysAll dues must be paid within 30 working days of your last day.
Read next
- Notice period and notice pay in BangladeshNotice rules under the Labour Act: 60 days to resign, 120 days for termination, one month for retrenchment, and what happens to pay if notice is short.
- Final settlement: paid within 30 working daysYour employer must pay all dues within 30 working days of your last day under s.123(2). How the days are counted and what to do if payment is late.
Why you can rely on Pawna
- Every figure shows its lawEach line names the section it comes from, so you can check it or show it to HR.
- Private by designNo sign-up, no account. What you type stays on your phone.
- Updated for 2026Built on the April 2026 labour amendment and the Finance Act 2026, not old blog posts.
- Honest about limitsWhere the law is unclear we say so, and tell you what to ask HR or a lawyer.