Guide · the rules in plain words
What changed in Bangladesh labour law in 2026
The Bangladesh Labour (Amendment) Act 2026 (Act 43 of 2026, 10 April 2026) changed the Labour Act 2006 in force at once. The biggest change for employees: a permanent worker who resigns now earns a resignation benefit from the first completed year, at 7, 15 or 30 days' wages a year, instead of only after five years.
Based on the Labour Act 2006 as amended in 2026, checked 12 November 2026 · An estimate, not legal or tax advice.
Which law is in force now?
The Bangladesh Labour Act 2006 (Act 42 of 2006) is still the main law. It was amended by the Bangladesh Labour (Amendment) Act 2026, Act 43 of 2026, published on 10 April 2026 and in force from that day. That Act replaced the Ordinance of 17 November 2025, so pages written about the Ordinance can be out of date.
What changed for people who resign?
Before the amendment, a permanent worker who resigned got nothing for the first five years. Section 27(4) now gives a benefit for every completed year from the start:
- up to 3 years’ service: 7 days’ wages a year;
- more than 3 and under 10 years: 15 days’ wages a year;
- 10 years or more: 30 days’ wages a year, or gratuity if that is higher.
“Wages” here means basic plus dearness allowance and any ad hoc wage (section 14(3)), not gross pay. The worker still gives 60 days’ written notice, or loses wages for the days short (section 27(3)).
What else changed?
- Maternity: 120 days of paid leave, 60 before and 60 after delivery (sections 46 to 48).
- Festival holidays: 13 a year (section 118).
- Who is a worker: people are excluded as managerial, administrative or supervisory staff only when they are designated as such in writing (section 2(49)). A job title alone does not take you out of the Act.
What did not change?
- Termination without misconduct still pays 30 days’ wages a year or gratuity, with 120 days’ notice (section 26).
- All dues must still be paid within 30 working days of the last working day (section 123(2)).
- Annual leave for adult workers is still one day for every 18 days worked (section 117). The “one day per 14” figure applies only to adolescent factory workers.
What does this mean in taka?
On a basic of 30,000 taka (1,000 a day), a worker who resigns after 6 years now receives 15 × 6 × 1,000 = 90,000 taka. Under the old rule, the same worker received 14 days × 6 × 1,000 = 84,000 taka. Someone who resigns after 2 years, who used to get nothing, now receives 7 × 2 × 1,000 = 14,000 taka.
More examples on a basic of 20,000 taka (666.67 a day), resigning with full notice:
| Service | Step | Resignation benefit |
|---|---|---|
| 2 years 6 months | 7 days × 2 years | 9,333 |
| Exactly 3 years | 7 days × 3 years | 14,000 |
| 3 years 6 months | 15 days × 3 years | 30,000 |
| 9 years 10 months | 15 days × 9 years | 90,000 |
What should I do now?
- Check your old figure. If HR or an online calculator quotes a resignation benefit of zero before five years, it is using the old law.
- Find your basic and dearness allowance on your payslip. These, not gross, decide the amount.
- Count completed years from your joining letter to your planned last day.
- Run the calculator and keep the result with its section numbers for your exit meeting.
Is anything still unclear?
Yes. The wording of section 27(4) can be read two ways at exactly 3 years and at 10 years, and it is not certain whether one rate applies to all years or each step applies in turn. Pawna uses one rate for all completed years and puts exactly 3 years in the 7-day step. If you are close to a boundary, ask HR or a labour lawyer, and show them the section.
Common questions
When did the 2026 amendment take effect?
The Bangladesh Labour (Amendment) Act 2026 was published on 10 April 2026 and took effect at once. It replaced the Labour (Amendment) Ordinance 65 of 2025, dated 17 November 2025.
Do EPZ workers follow these rules?
No. Export processing zones follow the Bangladesh EPZ Labour Act 2019, which has its own notice and benefit rules.
My HR says I get nothing for resigning before five years. Is that right?
For resignations from 10 April 2026 that is the old rule. Section 27(4) now pays from the first completed year. Show HR the section and ask for the figure in writing.
Try it with your own figures
The calculator runs on your phone. Your figures are not sent anywhere.
