Leave details
The Labour Act grants 1 day of earned leave per 18 days worked. Encashment basis (basic vs gross) follows your company policy.
Estimated encashment
Payable amount
৳10,000
- Per-day rate
- ৳833
- Basis
- basic salary ÷ 30
Indicative only. Company policy, tax treatment and service length can change the payable amount.
Leave encashment in Bangladesh — common questions
How is earned leave encashment calculated in Bangladesh?+
The common practice is (last drawn basic salary ÷ 30) × unused earned leave days. Some companies pay on gross salary — follow your own company policy.
How many earned leave days does an employee earn?+
Under the Bangladesh Labour Act 2006, an adult worker earns 1 day of earned leave for every 18 days worked.
When is leave encashment paid?+
Usually with the final settlement when an employee resigns, retires or is separated, or annually if the company policy allows encashment of unused leave.
Is leave encashment taxable?+
Leave encashment is generally treated as salary income for tax purposes. Confirm the current NBR treatment with your tax adviser.
Encash leave automatically at settlement
AIHR BD tracks earned leave balances per employee and adds encashment to the final settlement automatically. 14-day free trial — no credit card required.