Understanding Gratuity Schemes and Compensation Benefits in Bangladesh Labor Law

Gratuity Scheme and Compensation Benefits in Bangladesh

We want to start a gratuity scheme for our company. Please inform me about the gratuity policy in Bangladesh as per labor law. Also, what are the compensation benefits according to the labor law?

Regards,
Nipa

It is considered a long-term financial benefit for employees, payable at the time of leaving the company upon completion of at least 5 years of service. However, every company has its own policy.

Regards,
Rabbany

After completion of 5 years of continual service, a person will be eligible for Gratuity. In some organizations, it is 3 years as well. You can determine it based on your organization's intention. However, you cannot extend it beyond 5 years.

Regards,
Ashak

Gratuity is a long-term financial benefit given by the employer to its employees during separation. As per the Bangladesh Labor Law 2006, gratuity is not mandatory for employers. The gratuity policy depends upon the company's own resolution, which may be for 3 years, 5 years, or more.

By adopting a gratuity scheme within the organization, the organization can claim a tax rebate against the gratuity fund. For this, the organization has to form a gratuity fund trustee board similar to the provident fund scheme and get it endorsed by the NBR.

Regards,
Saikat

Please advise me about gratuity and service benefits as per labor law.