Separation details
Estimated amount
Employer pays the worker
৳1,80,000
- Required notice
- 120 days
- Unserved notice
- 120 days
- Notice pay
- ৳1,20,000
- Compensation (30 days/year)
- ৳60,000
Indicative only. Dismissal for misconduct (s.23), retrenchment (s.20) and discharge (s.22) follow different rules. Gratuity is paid instead of compensation when higher.
Notice pay in Bangladesh — common questions
How much notice must an employer give in Bangladesh?+
Under section 26 of the Labour Act 2006, an employer terminating a permanent monthly-rated worker (other than for misconduct) must give 120 days' written notice, or 60 days for other workers — or pay wages in lieu of the notice.
What compensation is paid on termination under section 26?+
A permanent worker terminated under section 26 also receives compensation at 30 days' wages for every completed year of service, or gratuity if that is higher.
How much notice does a worker give when resigning?+
Under section 27 a permanent worker must give 60 days' written notice and a temporary worker 30 days. A worker who leaves without notice can be asked to pay wages for the notice period.
How is the daily wage worked out?+
This calculator uses monthly wage ÷ 30 for notice pay and monthly basic ÷ 30 for compensation, which is the common practice. Check your appointment letter and company policy for any different rule.
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