Guide · the rules in plain words
Final settlement: paid within 30 working days
Under section 123(2) of the Bangladesh Labour Act 2006, all dues of a worker who leaves, whether by resignation, termination, retrenchment, discharge, dismissal or retirement, must be paid within 30 working days of the last working day.
Based on the Labour Act 2006 as amended in 2026, checked 12 November 2026 · An estimate, not legal or tax advice.
What is included in a final settlement?
Everything you are owed when the job ends:
| Item | Where it comes from |
|---|---|
| Service benefit or gratuity | The section for your kind of exit (ss.19 to 28) |
| Notice pay, if the employer gave short notice | ss.20 and 26 |
| Unused annual leave | s.11 |
| Unpaid salary for days already worked | Your wage for those days |
| Provident fund, if you are a member | Fund rules |
Deductions can include notice you did not serve, and loans or advances you agreed to repay.
What does each kind of exit pay?
| How the job ended | Service benefit per completed year |
|---|---|
| Resignation | 7, 15 or 30 days’ wages by length of service (s.27(4)) |
| Termination without misconduct | 30 days’ wages or gratuity, whichever is higher (s.26(4)) |
| Retrenchment, after 1 year | 30 days’ wages or gratuity, whichever is higher (s.20(2)) |
| Discharge for ill health, after 1 year | 30 days’ wages or gratuity, whichever is higher (s.22(2)) |
| Dismissal for misconduct, after 1 year | 15 days’ wages; nothing for theft, fraud, riot or arson (s.23) |
| Retirement at 60 | As for termination (s.28(3)) |
How are the 30 working days counted?
Pawna counts 30 working days from your last working day and skips Fridays and Saturdays. Public holidays are not removed, because they differ by employer. The real date may be a few days later than the one shown.
Example: a last working day of Friday 13 November 2026 gives a deadline of about Thursday 24 December 2026.
A worked example of a full settlement
A worker resigns after 6 years and 3 months on a basic of 25,000 and gross of 40,000, gives 40 days’ notice, and has 10 days of leave left:
- Service benefit: 75,000 taka
- Short notice deducted: −16,667 taka
- Unused leave: 13,333 taka
- Total: 71,667 taka, due within 30 working days
What should I check before I sign?
Compare the employer’s statement line by line with your Pawna result. The usual gaps are:
- The day wage. Is it basic plus dearness allowance divided by 30, or something lower?
- Completed years. Is your joining date right?
- Leave days. Do they match your leave record?
- Gratuity. Was it compared with the service benefit, with the higher one paid?
Ask for the calculation in writing before you sign a release or a “full and final” receipt.
What if my employer pays late?
- Write to HR with your calculation and the section numbers, and ask for a payment date.
- Keep your appointment letter, payslips, resignation or termination letter, and any release letter.
- If that fails, contact the Department of Inspection for Factories and Establishments (DIFE), or take legal advice about the Labour Court.
Is the settlement taxed?
Most of it is taxed as salary: compensation, notice pay, leave encashment and unpaid salary. Gratuity from an approved fund and a recognised provident fund can be tax free. See the after-tax settlement calculator for what reaches your bank.
Common questions
Does the 30-day limit include Fridays and Saturdays?
The Act says working days. Pawna skips Fridays and Saturdays. It cannot know your employer's holiday calendar, so public holidays may push the real date a little later.
Can my employer hold my final settlement until I return my laptop or ID?
Returning company property is reasonable, but the Act still sets 30 working days for payment. Return items promptly and ask for a written receipt so there is no excuse for delay.
Should I sign a full and final paper before I am paid in full?
Ask for the calculation in writing first and check every line. Once you sign, it is much harder to raise an objection.
Try it with your own figures
The calculator runs on your phone. Your figures are not sent anywhere.