Leave Policy in Bangladesh

Bangladesh regulates employee leave primarily through the Bangladesh Labour Act 2006 and its 2026 Amendment, which together establish the statutory minimum entitlements that all covered employers must observe. These legislative requirements set the floor for leave provision, and any company policy must be designed around them rather than in place of them.

Employers operating in Bangladesh face a compliance environment shaped by sector-specific rules, pending gazette confirmation of the 2026 Amendment's effective date, and entitlements that vary across industries such as general manufacturing, newspaper establishments, tea plantations, and the ready-made garment sector. Navigating these obligations requires verifying which statutory provisions apply to a given workforce before implementing or adjusting leave arrangements.

Leave Policy at a Glance

Overview and Legal Basis for Leave in Bangladesh

Leave entitlements in Bangladesh are governed by the Bangladesh Labour Act 2006, with key provisions in Sections 103–104 (weekly rest), 116 (sick leave), 117 (annual/earned leave), and 118 (festival holidays). The Bangladesh Labour (Amendment) Act 2026 introduced two compliance-critical changes: Section 118(1) raised paid festival holidays from 11 to 13 days, and Section 46 extended maternity leave to 120 days. Employers must confirm the gazette notification date and commencement date of the 2026 Amendment to determine when these obligations took effect.

The Act covers factories, shops and commercial establishments, newspaper establishments, tea plantations, and road transport operations. Each sector carries specific accrual rates and entitlement rules, so a single leave policy rarely applies uniformly across all operations.

Bangladesh abolished the jury trial system permanently, so no statutory jury duty leave exists. No statutory military leave or voting leave exists under the Labour Act 2006 or any separate legislation. Military leave remains an open compliance item for employers with staff in that category.

The Act sets statutory minimums. Employers may offer more generous terms through contracts or internal policy, but cannot fall below the statutory floor. See how does EOR work for context on entity-free employment in Bangladesh.

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Annual Leave (Earned / Privilege Leave)

Annual leave in Bangladesh activates only after an employee completes one year of service, equivalent to 240 working days, as set out in Section 117 of the Bangladesh Labour Act 2006.

Accrual rates vary by sector. General workers earn one day of leave for every 18 days worked, yielding approximately 14 days per year. Newspaper workers accrue at 1 day per 11 days worked. Tea plantation workers accrue at 1 day per 22 days worked. The effective annual range runs from approximately 11 to 22 days depending on sector. Adolescent workers accrue at different rates: 1 day per 15 days worked in factories, 1 day per 18 days in tea plantations, and 1 day per 14 days in shops. See the Other Leave Types section for full adolescent worker details.

Unused earned leave can be carried forward, subject to a cap. Factory and road transport workers may carry forward up to 40 days. Workers in shops and commercial establishments may carry forward up to 60 days. Leave beyond these caps does not accumulate. Adolescent workers receive higher carry-forward caps: 60 days in factories and tea plantations, and 80 days in shops and establishments. See the Carry-Forward and Leave Encashment Rules section for the full breakdown.

Encashment applies at two points. Employees may encash unused earned leave at year-end. On final settlement, whether through resignation, termination, or retirement, encashment of accrued earned leave is mandatory and calculated at the daily wage rate.

Employers may refuse or defer leave for operational reasons but must grant the entitlement within the leave year. For a regional comparison of annual leave rules across South Asia, see the leave policy in India.

Public Holidays

Bangladesh publishes a national gazette list each year. Under Section 118(1) of the Bangladesh Labour Act 2006, as amended in 2026, employers must select 13 paid festival holidays from that list.

The 2026 amendment raised the mandatory count from 11 to 13. Confirmed additions include Victory Day (16 December), Christmas Day (25 December), and New Year's Day (1 January), subject to final gazette notification. July Mass Uprising Day (5 August) was also added as a designated holiday for 2026.

Islamic holidays follow the lunar calendar and shift each year. Employers should confirm exact dates with the official gazette before publishing internal calendars.

Public holidays falling on a weekend are not automatically replaced with a substitute day. If an employer requires work on a festival holiday, the worker receives two compensatory paid days plus one substitute holiday under Section 118(3). Employers should review the gazette list annually, as confirmed dates can change.

Sick Leave

Under Section 116 of the Bangladesh Labour Act 2006, employees are entitled to 14 days of paid sick leave per year. The employer pays this leave at 100% of the employee's regular wages. No government fund contributes to the cost.

The Bangladesh Labour (Amendment) Act 2026 did not change the sick leave rate or the 14-day entitlement. Both remain unchanged.

Sick leave is non-cumulative. Unused days lapse at the end of the calendar year and cannot be carried forward. A medical certificate is required to qualify for paid sick leave.

Sick leave is separate from casual leave and serves a different purpose. Sick leave covers medically certified absences. Casual leave covers sudden personal needs and emergencies. The two types cannot be combined to extend a single absence. Each must be applied independently and tracked against its own balance.

Casual Leave

Employees in Bangladesh are entitled to 10 days of paid casual leave per year. This leave covers sudden personal emergencies, minor accidents, and unplanned absences that require immediate attention.

Casual leave is distinct from sick leave and annual earned leave. It cannot be combined with either type to extend a single continuous absence.

Casual leave is non-cumulative. Any unused balance lapses at the end of the leave year and cannot be carried forward to the following year. No statutory right to encashment exists for casual leave, whether at year-end or on termination of employment.

Maternity Leave

The Bangladesh Labour (Amendment) Act 2026, under Section 46, extended paid maternity leave in the general sector from 112 days to 120 days. The ready-made garment (RMG) sector retains a separate entitlement of 16 weeks, approximately 112 days.

Eligibility requires a minimum of six months of continuous service and fewer than two surviving children. Employees who do not meet these conditions are entitled to unpaid leave only.

Under the Bangladesh Labour Act 2006, no female employee may be permitted to work during the 8 weeks immediately following childbirth. This prohibition applies regardless of the employee's consent or the employer's operational requirements.

Maternity leave may be distributed at the employee's discretion before and after the date of delivery, subject to the total entitlement. The employer bears the full cost of maternity benefit, calculated at the employee's average daily wage rate. No government fund contributes to this payment.

The table below summarises entitlements by scenario.

The Act provides nursing breaks for eligible employees following their return to work. The Bangladesh Labour Act 2006 does not specify a statutory frequency or duration for nursing or breastfeeding breaks. Employers must provide breastfeeding opportunities and appropriate facilities under the Labour Rules, but no fixed break duration or frequency is prescribed.

Employers should note that the 120-day obligation under Section 46 of the 2026 Amendment took effect on gazette notification of the Bangladesh Labour (Amendment) Act 2026. Confirm the exact gazette date with local counsel to establish when this obligation became binding for compliance and back-pay purposes.

For a regional comparison of maternity entitlements, see the leave policy in Philippines.

Paternity Leave

Bangladesh's Labour Act 2006 does not include a statutory paternity leave entitlement. The Bangladesh Labour (Amendment) Act 2026 also does not introduce one.

Some sources cite a five-day statutory minimum for paternity leave in Bangladesh. This claim is not supported by the text of the 2006 Act or the 2026 amendment and should not be relied upon for compliance purposes.

Paternity leave in Bangladesh is entirely employer-discretionary. Tech companies and multinational employers commonly offer between 3 and 10 days voluntarily. No statutory shared or gender-neutral parental leave exists as a separate category under Bangladesh law. Employers who choose to offer paternity leave should define the duration, eligibility criteria, and pay terms clearly in the employment contract.

Adoption and Surrogacy Leave

Bangladesh's Labour Act 2006 and the Bangladesh Labour (Amendment) Act 2026 contain no provision for adoption leave, surrogacy leave, or shared and gender-neutral parental leave as a separate statutory category.

No legal entitlement exists for any of these categories. Surrogacy leave has no statutory basis and is offered at employer discretion only.

Some employers voluntarily extend maternity leave provisions to adoptive mothers as an internal policy. This practice has no statutory basis. Any adoption leave offered should be documented in the employment contract. Employers who adopt such a policy should also specify any age-of-child conditions that apply to ensure consistent application.

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Bereavement Leave

The Bangladesh Labour Act 2006, including the 2026 amendment, does not require employers to provide bereavement leave. Many employers offer up to 3 days voluntarily, typically covering the death of an immediate family member.

The definition of "immediate family" varies by employer. Some policies cover spouses, parents, and children only. Others extend to siblings, in-laws, or grandparents. Employers should define the scope explicitly in the employment contract or staff handbook to ensure consistent application.

Bereavement days are usually charged against the employee's casual leave balance or treated as unpaid leave. Neither approach has a statutory basis, so the chosen method should be documented in writing before any claim arises.

Other Leave Types

The Bangladesh Labour Act 2006 sets out several additional entitlements and restrictions that apply across different worker categories.

Rest breaks: Employees are entitled to a minimum half-hour break after 5 hours of continuous work, a one-hour break after 6 hours, and either one hour or two half-hour breaks after 8 hours of work (Bangladesh Labour Act 2006, relevant rest break provisions).

Adolescent workers: Workers classified as adolescents may not work more than two consecutive shifts and are capped at 7.5 hours of total work per day (Bangladesh Labour Act 2006, adolescent worker provisions).

Child workers: Work hours for child workers must not interfere with their school schedule. Employers must structure shifts around confirmed school hours (Bangladesh Labour Act 2006, child worker provisions).

• Jury duty leave: Not applicable. Bangladesh permanently abolished the jury trial system. No jury duty leave obligation exists for employers.

• Military leave: No confirmed statutory entitlement exists under the Bangladesh Labour Act 2006. Employers should review applicable defence and reserve force legislation before setting internal policy.

• Voting leave: No confirmed statutory entitlement exists under the Bangladesh Labour Act 2006 or current election legislation. Employers who choose to offer it should document the terms in writing.

All discretionary leave arrangements, including any leave granted beyond statutory minimums, should be recorded in the employment contract or a written policy to avoid disputes during audits or terminations.

Carry-Forward and Leave Encashment Rules

Bangladesh caps how much earned leave an employee can accumulate, and the cap varies by establishment type and worker age category under Section 117 of the Labour Act.

Leave that exceeds the applicable cap does not accumulate. It is forfeited at year-end.

Encashment applies at two points. Employees may encash unused earned leave at year-end. On final settlement, whether through resignation, termination, or retirement, encashment of accrued earned leave is mandatory and calculated at the daily wage rate. For a comparison of how encashment rules work in another market, see the leave policy in UAE.

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Best Practices for Managing Leave Compliantly in Bangladesh

Compliant leave management in Bangladesh requires tracking multiple variables: accrual rates by sector, age-based carry-forward caps, and the effective dates of the 2026 amendments.

• Monitor the 2026 Amendment effective date and update payroll and leave systems before it commences. The amendment raises festival holidays to 13 days and extends maternity leave to 120 days. Both changes must be reflected from the correct commencement date, not from the date of publication.

• Apply sector-specific carry-forward caps correctly. Adult workers in factories and road transport are capped at 40 days. Adult workers in shops and commercial establishments are capped at 60 days. Adolescent workers carry higher caps of 60 to 80 days depending on establishment type. Misapplying these caps creates underpayment risk on final settlement.

• Document all voluntary leave policies, including paternity leave and bereavement leave, in the employment contract. The Labour Act does not cover these categories, so employer-defined terms govern any dispute.

• Use a centralized leave tracking system to manage accruals, balances, and encashment calculations across worker categories. Employers managing mixed workforces across sectors face the highest administrative complexity. Working with a best employer of record provider gives HR teams a single governance layer for leave, payroll, and statutory filings without a local entity.

Managing Leave Policy in Bangladesh with Gloroots

Gloroots supports entity-free employment in Bangladesh, giving HR and operations teams centralized governance over leave, payroll, and statutory benefits without a local entity.

The platform tracks 2026 Amendment obligations from their correct effective dates. This includes the 13-day festival holiday requirement under Section 118(1) and the 120-day paid maternity leave entitlement under Section 46.

Gloroots also supports sector-specific carry-forward cap tracking across adult and adolescent worker categories. Factory workers, shop and commercial establishment workers, and tea plantation workers each operate under different accrual rates and carry-forward limits. The platform applies the correct cap per worker category automatically.

For teams managing employees across multiple sectors, this removes the manual work of reconciling industry-specific rules. Compliance obligations are tracked in one place, with full visibility into balances, accruals, and statutory filings. See EOR services and pricing for details on how Gloroots supports compliant employment in Bangladesh.

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Frequently Asked Questions About Leave Policy in Bangladesh

How is annual leave calculated in Bangladesh?

Annual leave accrual in Bangladesh depends on industry. General workers earn 1 day per 18 days worked. Newspaper establishment workers accrue at 1 day per 11 days worked. Tea plantation workers accrue at 1 day per 22 days worked.

Leave activates only after an employee completes one year of service, equivalent to 240 working days, as required under Section 117 of the Bangladesh Labour Act 2006.

How many paid public holidays are there in Bangladesh in 2026?

Bangladesh requires 13 paid festival holidays in 2026 under Section 118(1) of the Bangladesh Labour (Amendment) Act 2026. The 2026 amendment raised this figure from 11 days. Employers select the 13 days from the official gazette list published each year.

Confirmed additions for 2026 include Victory Day (16 December), Christmas Day (25 December), and New Year's Day (1 January), subject to final gazette notification.

Is paternity leave a legal requirement in Bangladesh?

No statutory paternity leave exists under the Bangladesh Labour Act 2006 or the Bangladesh Labour (Amendment) Act 2026. Neither law creates an entitlement for fathers or non-birthing parents.

Paternity leave in Bangladesh is entirely employer-discretionary. No statutory shared or gender-neutral parental leave category exists as a separate entitlement. Employers who offer paternity leave should document the duration, eligibility, and pay terms in the employment contract.

What are the rules for leave encashment in Bangladesh?

Under Section 117 of the Bangladesh Labour Act 2006, employees may encash unused earned leave at two points: at year-end and on final settlement.

Year-end encashment allows employees to convert unused earned leave into cash before the leave year closes, without waiting for separation. On final settlement, whether through resignation, termination, or retirement, encashment of all accrued earned leave is mandatory and calculated at the daily wage rate. Sick leave and casual leave cannot be encashed under any circumstances.

Can sick leave be carried forward in Bangladesh?

No. Under Section 116 of the Bangladesh Labour Act 2006, sick leave is non-cumulative. Unused days lapse at the end of the calendar year and cannot be carried into the next.

Annual leave follows different rules under Section 117. Unused earned leave may carry forward, subject to a cap of 40 days for factory and road transport workers, or 60 days for workers in shops and commercial establishments, depending on sector.

How much maternity leave are employees entitled to in Bangladesh?

Under Section 46 of the Bangladesh Labour (Amendment) Act 2026, eligible employees in the general sector receive 120 days of paid maternity leave. The RMG sector retains a separate entitlement of 16 weeks.

Employees control how leave is distributed before and after childbirth, but working during the 8 weeks immediately following delivery is prohibited by statute. Eligibility requires at least 6 months of continuous service and fewer than 2 surviving children.

What are the standard working hours in Bangladesh?

The standard workweek in Bangladesh is 48 hours, set at 8 hours per day across 6 days. Rest breaks are mandatory: a half-hour break after 5 hours of work, one hour after 6 hours, and one hour (or two half-hour breaks) after 8 hours.

Adolescent workers face additional restrictions. They may not work more than two consecutive shifts, and their total daily hours are capped at 7.5 hours.