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Labour Act 2026 Amendment: What Changed for Pay and Leave

What the Bangladesh Labour (Amendment) Act 2026 changed for workers’ money and leave: resignation compensation from the first year, 13 days’ festival leave, 120 days’ maternity leave and more, quoted from the official text.

Published 2 November 2026

The short answer

The Labour (Amendment) Act 2026, in force from 10 April 2026, gives a permanent worker who resigns 7 days’ wages per completed year for up to 3 years’ service, 15 days for over 3 and under 10 years, and 30 days or gratuity, if higher, for 10 years or more. Festival leave rose from 11 to 13 days and maternity leave to 120 days.

When the law took effect

The Bangladesh Labour (Amendment) Act 2026 is Act No. 43 of 2026, dated 10 April 2026. Its section 1(2) says it takes effect immediately. This page covers only the changes to workers’ money and leave that our calculators use; for trade unions and the other changes, read the full Act.

What changed

TopicWhat the law says nowSection
Resignation compensation (permanent worker)Per completed year: 7 days’ wages for up to 3 years’ service; 15 days for over 3 and under 10 years; 30 days’ wages or gratuity, whichever is more, for 10 years or more. On top of all other benefits.27(4)
Which wage the compensation usesThe last monthly basic wage and dearness allowance before the job ended, plus any ad hoc or interim wage.14(3)
What counts as “one year” of serviceAt least 240 days actually worked in the previous 12 calendar months (and 120 days in 6 months counts as “six months”).14(1)
Festival leave13 days a year (was “eleven”).118(1)
Maternity leave120 days in total (was “sixteen weeks”); 60 days before and 60 after the birth (was “eight weeks”).46, 47, 14(2)
Maternity leave and earned leaveUp to 120 days of maternity leave count as days worked for earned leave.117(8)(d)

What you get when you resign: an example

The heart of the new section 27(4): compensation for resigning from the first completed year, at a rate set by your total length of service. Section 27(1) sets 60 days’ written notice before resigning.

  1. A permanent worker resigns with notice after 4 years 8 months; their last monthly basic wage is ৳20,000.
  2. Completed years: 4, which is over 3 and under 10, so 15 days’ wages per year.
  3. The Act doesn’t say how a monthly wage becomes a daily wage. If your employer divides by 30, the daily wage is ৳20,000 ÷ 30 = ৳666.67.
  4. Compensation = 4 × 15 × ৳666.67 = ৳40,000.

To work out your own figure, use the Job Exit Benefit Calculator; it also covers retrenchment, discharge and termination by the employer.

Changes to leave

  • Festival leave is now 13 days a year; section 118 covers substitute leave and pay for working on a festival day.
  • Maternity leave is now 120 days, and those days count as days worked for earned leave.
  • To see how much earned leave you have and what it is worth when you leave, use the Earned Leave Calculator; for overtime, the Overtime Pay Calculator.

Keep in mind

This is a general explanation of the law, not legal advice. If a job ended before 10 April 2026, the law as it stood then may apply. Your appointment letter, service rules and the courts decide; if in doubt, ask the labour court or a lawyer.

Sources

Read and checked on 2 November 2026.

Work it out with the Job Exit Benefit Calculator (Labour Act)