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Free Tool · Labour Act 2006

Gratuity & leave encashment calculator

Find out what a departing employee is owed — gratuity for completed years of service plus cash value of unused earned leave.

Service details

Gratuity applies after five completed years of continuous service, at 30 days of basic wage per year — rising to 45 days per year once service passes ten years.

Estimated settlement

Total payable

৳183,333

Gratuity eligibility
Eligible
Rate applied
30 days basic per year
Gratuity amount
৳175,000
Leave encashment
৳8,333

Indicative only. Provident fund balance, notice pay, outstanding loans and company policy also affect the final settlement.

Gratuity in Bangladesh — common questions

Who is eligible for gratuity in Bangladesh?+

Under the Bangladesh Labour Act 2006, a worker who has completed at least five years of continuous service is entitled to gratuity on separation, unless dismissed for misconduct.

How is gratuity calculated?+

Thirty days of the last drawn basic wage for every completed year of service. Where service exceeds ten years, the rate is forty-five days of basic wage per completed year.

How is earned leave encashment calculated?+

The common practice is (last basic salary ÷ 30) × the number of unused earned leave days standing to the worker's credit, paid together with the final settlement.

Is gratuity taxable?+

Gratuity received under an approved scheme is generally exempt up to the limit set by the National Board of Revenue. Confirm your company's treatment with your tax adviser.

Generate a full & final settlement in one click

AIHR BD combines gratuity, provident fund, leave encashment, dues and deductions into a printable clearance statement. 14-day free trial — no credit card required.