Under the Bangladesh Labour Act definition, gratuity = 30 days' wages at the last wage rate for each completed year of service, or 45 days per year if service exceeds ten years. The daily wage is usually the monthly wage ÷ 30. If the company's own policy is more generous, that applies. The calculator below shows both.
Example: last monthly basic BDT 40,000, service 12 years 7 months. Counting over six months as a full year gives 13 years. That is more than ten years, so 45 days per year. Daily wage 40,000 ÷ 30 = BDT 1,333. Gratuity = 1,333 × 45 × 13 ≈ BDT 780,000.
Which wage to use
The Labour Act uses the word "wages". Many company policies calculate gratuity on basic salary only, some on basic plus dearness allowance. Follow what your gratuity policy or trust deed says. If the policy is unclear, take your legal adviser's view.
Law versus company policy
| Item | Labour Act minimum | Common in company policies |
|---|---|---|
| Eligibility | At least one year of service | The same or longer, e.g. 5 years (a policy cannot give less than the law) |
| Days per year | 30 up to 10 years, 45 beyond | 30, 45 or 60 days |
| Part years | Completed years | Over six months counts as a full year |
Frequently asked questions
Is gratuity paid if an employee is dismissed?
It depends on the reason and type of employment. The rules differ for dismissal for misconduct. Take legal advice on specific cases.
Is gratuity taxable?
Gratuity from an approved gratuity fund is exempt up to a limit set in the Income Tax Act. Check the current limit.
Should the daily wage divide by 30 or 26?
Many policies use 30; some factories use 26 working days. The calculator offers both; use what your policy says.
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Written by the EOMS Hisab accounts team. Last reviewed: . Bangladesh rules change with each Finance Act, SRO and circular. Check rates and thresholds against the latest official source before relying on them.