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Notice pay & termination calculator

Work out notice pay and section 26 compensation when an employer ends a job, or what a worker owes when resigning without notice.

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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