Payroll & Employment Guide: Bangladesh

Hiring in the United States

If you want to hire remote workers in Bangladesh, ensure compliance with sector-specific minimum wages, written employment contracts, and statutory benefits. Explore salaries, benefits, payroll taxes, employment costs, and legal requirements for hiring.

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Employee Benefits

Mandatory Benefits

• Paid annual leave
• Sick leave
• Festival holidays
• Maternity leave
• Provident Fund (voluntary unless employer adopts scheme)
• Gratuity (for eligible employees)
• Overtime pay requirements

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Leave Policies

Annual Leave:

10–20 days, depending on years of service.

Sick Leave:

14 days (paid)—varies by sector.

Parental Leave:

• Maternity leave: 16 weeks (paid as per law)
• Paternity leave: Provided voluntarily by many employers

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Healthcare

• No mandatory employer health insurance
• Many companies offer private medical coverage as a benefit

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Taxes in Bangladesh

Bangladesh applies progressive income tax rates.

Personal Income Tax Rates:

Ranges start at 0% and go up to ~25%, depending on income tier and assessment.

Tax Allowances & Reliefs:

• Basic exemption
• Allowances for investments
• Family-related deductions

Employers must deduct tax at source (TDS) before salary payment.

Payroll in Bangladesh

Base Salary

Must comply with sector-specific minimum wage schedules.

Payment Schedule

Salaries are typically paid monthly, within 7 working days of the month-end.

Additional Payments

• Festival bonus (commonly two per year)
• Performance bonuses

Taxes and Social Security

Bangladesh does not operate a universal social security system like many countries.

Employer responsibilities include:

• Tax withholding
• Gratuity obligations
• Voluntary Provident Fund contributions (if adopted)
• Overtime & leave pay compliance

Payroll Reporting

Monthly:

• Tax deductions

Annual:

• Employee tax certificates
• Employer payroll reports

Key Deadlines:

• Salary: Monthly
• Taxes: Monthly TDS
• Annual return: As per NBR deadlines

Payroll Currency: BDT

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Legal Regulations

Bangladesh labour laws include provisions for minimum wage, working hours, safety, leave, and termination.

Total Employment Cost:

Generally 10–15% above gross salary (depending on sector & benefits).

Probation Period:

3 to 6 months

Work Permits & Visas for Bangladesh

Foreign nationals require:

• Work permit
• Employment visa
• Security clearance (for certain roles)

Learn more about work permits in Bangladesh

Employer of Record in Bangladesh

EOR services in Bangladesh allow companies to hire and manage employees legally without setting up a local entity. This enables businesses to enter the market faster, reduce administrative burden, and remain fully compliant with Bangladesh labor laws.

Your EOR manages:

• Employment contracts drafted in accordance with the Bangladesh labor laws
• Payroll processing and statutory deductions
• Monthly tax calculations and required filings
• Compliance with the Bangladesh Labor Act and local employment regulations
• Employee onboarding and offboarding processes
• Leave management, benefits administration, and HR documentation
• Local guidance on labor requirements, public holidays, and employee rights

PEO Services in Bangladesh

PEO services in Bangladesh support employers with a local entity by outsourcing essential HR and compliance functions, helping businesses operate efficiently while staying aligned with local labor regulations.

PEO services support employers by managing:

• HR administration and employee records
• Payroll processing, statutory deductions, and benefits
• Compliance with Bangladesh labor laws
• Preparation of compliant employment contracts

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Payroll Calculator

Estimate payroll deductions, taxes, and total employer cost for Bangladesh.

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