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Gratuity under the Labour Act
The Bangladesh Labour Act 2006 defines gratuity as wages of at least 30 days for every completed year of service (or a final part-year of more than six months), and 45 days for service of more than ten years. In practice it is calculated on the last basic salary: daily basic = monthly basic ÷ 30.
Example: basic ৳20,000, service 7 years 8 months → 8 years counted × 30 days × ৳666.67 = ৳1,60,000.
Benefits when a job ends
- Resignation (s.27) — permanent worker gives 60 days' notice. After 5–10 years: 14 days' wages per completed year; after 10 years: 30 days per year — or gratuity if higher.
- Termination by the employer (s.26) — 120 days' notice (or wages in lieu) plus 30 days' wages per completed year, or gratuity if higher.
- Retrenchment (s.20) — one month's notice (or wages) plus 30 days' wages per year, or gratuity if higher.
- Earned leave — one day for every 18 days worked; unused leave is paid out when the job ends.
Overtime
Section 108 says overtime is paid at twice the ordinary rate of basic plus dearness and ad-hoc allowance. The ordinary hourly rate is usually basic ÷ 208 (26 working days × 8 hours). For a ৳12,500 basic: ৳60.10 an hour ordinary, ৳120.19 overtime.
Working hours may not exceed 10 a day or 60 a week, with an annual average of 56 a week.
Company service rules and contracts can give more than the Act — never less. For a disputed case, ask a labour law adviser.