Resignation benefit in Bangladesh: 7, 15 or 30 days a year

How much do I get if I resign?

Find your step, then multiply three numbers:

days for your step × completed years × one day’s wage

One day’s wage is your monthly basic plus dearness allowance, divided by 30. Gross pay is not used. This is the single most common mistake people make when they check their own figure.

A worked example

Rahima has worked 6 years and 3 months. Her basic is 25,000 taka and her gross is 40,000. She gave 40 days’ notice instead of 60 and has 10 days of unused leave.

• One day’s wage: 25,000 ÷ 30 = 833.33 taka.
• Service benefit: 15 days × 6 years × 833.33 = 75,000 taka.
• Short notice: 20 days × 833.33 = 16,667 taka deducted.
• Unused leave, priced on gross: 10 × (40,000 ÷ 30) = 13,333 taka.
• Total: 71,667 taka, payable within 30 working days of her last day.

The extra 3 months do not count. Only completed years count for this benefit.

What counts as a completed year?

Continuous service is set out in section 14(1). Working 240 days in the last 12 months counts as a year. Approved leave, sickness and lay-off do not break the chain. A break in service, such as leaving and rejoining, can.

Do I have to give notice?

Yes. A permanent worker gives 60 days’ written notice (section 27(3)). If you leave sooner, the employer may keep wages for the days you fall short. Hand in the letter, keep a copy with the date of receipt, and plan your last day so the 60 days are complete.

What about gratuity?

From 10 years, the Act gives 30 days’ wages a year or gratuity, whichever is higher, where your employer has a gratuity scheme. Gratuity under section 2(10) is 45 days a year once service passes 10 years, so it usually wins. Under 10 years the fixed days apply by law, but your contract may promise more. Check it.

Common mistakes

• Using gross pay. It inflates the figure and leads to disputes you cannot win.
• Counting part years. 9 years and 11 months is 9 completed years at 15 days, not 10 at 30.
• Forgetting leave. Unused annual leave is paid on every kind of exit (section 11).
• Missing the 3-year step. At 3 years you are on 7 days a year. A few weeks more moves you to 15 days, which more than doubles the benefit. Check the date before you resign.

When must I be paid?

All dues, including the resignation benefit, unused leave and unpaid salary, must be paid within 30 working days of your last working day (section 123(2)).

Is anything still unclear?

At exactly 3 years the wording allows two readings. It is also not settled whether one rate applies to every year or each step applies in turn. Pawna uses one rate for all completed years and puts exactly 3 years in the 7-day step, the lower reading. If you are close to a boundary, ask HR or a labour lawyer and show them the section.