What is the Festival Bonus in Bangladesh?

In Bangladesh, the festival bonus is an important part of employee compensation, provided during major festivals. While regulations set certain standards, company practices often offer more flexibility.


Regulatory Requirements

Under the Labor Rules, 2015, employees are eligible for two festival bonuses per year only after completing one year of service with the company. This regulation ensures that long-serving employees are rewarded during significant festivals.


Company Practices

Many companies in Bangladesh offer festival bonuses sooner, even to employees who have not yet completed one year of service. This practice is outlined in company HR policies and employment contracts, making it possible for new employees to receive a bonus before their first anniversary.


Eligibility

  • Regulatory Standard: Eligibility for festival bonuses according to the Labor Rules requires one year of service.
  • Company Policies: Many employers provide bonuses earlier based on company-specific policies. The exact terms and timing depend on the employment contract and company practices.

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