Employer of Record (EOR) in Bangladesh: 2026 Guide
Hiring in Bangladesh: Introduction to Employer of Record (EOR)
Hiring in Bangladesh requires navigating local labor rules defined by the Bangladesh Labour Act 2006, payroll obligations, and statutory compliance that can be difficult for foreign companies to manage alone. An Employer of Record (EOR) allows businesses to hire employees in Bangladesh quickly and legally by handling employment contracts, payroll administration, income tax withholding, and mandatory social benefits such as Provident Fund and Gratuity without needing to create a Bangladeshi legal entity.
Using this guide, you will learn how EOR services streamline hiring in Bangladesh, reduce administrative risk, and offer the fastest path to compliant workforce expansion in the country.
🇧🇩 Bangladesh at a Glance – Hiring & EOR Overview
Pros and Cons of Using an EOR Compared to Creating a Local Entity in Bangladesh
Choosing between an Employer of Record (EOR) in Bangladesh and incorporating your own Bangladeshi company depends on how fast you want to enter the market and how much local overhead you are willing to take on. The comparison below highlights the main advantages and limitations of each approach so you can decide which model fits your hiring and expansion strategy in Bangladesh.
| Factor | Employer of Record (EOR) | Setting Up a Legal Entity in Bangladesh |
|---|---|---|
| Setup Time | ✅ Fast launch, often 1 to 2 weeks | ❌ Typically 2 to 3 months for RJSC registration, Trade License, and Tax/VAT setup |
| Initial Cost | ✅ Low, service fee plus employee costs | ❌ Higher, including RJSC fees, legal documentation, and BIDA permissions |
| Ongoing Cost | ✅ Predictable monthly EOR pricing | ❌ Variable, requires local accounting, annual returns, and office maintenance |
| Complexity | ✅ Simple, EOR runs contracts, payroll, and HR admin | ❌ Higher, must navigate the Bangladesh Labour Act 2006 and local tax laws |
| Control Over Operations | ✅ You direct day to day work, EOR is legal employer | ❌ Full legal responsibility for employment, Gratuity, and Provident Fund |
| Compliance Management | ✅ EOR handles employment compliance and filings | ❌ Must be handled internally, including monthly AIT and VAT filings |
| Scalability | ✅ Easy to scale hiring up or down | ❌ Slower, updates to business licenses and capital requirements may be needed |
| Local Expertise Required | ✅ None, local HR and legal support included | ❌ Significant, requires local legal counsel and specialized payroll staff |
| Risk | ✅ Employment admin risk sits mainly with the EOR | ❌ Company carries full liability for compliance with Bangladeshi labor courts |
| Best For | ✅ Fast hiring, pilots, and lean teams | ❌ Long term presence and large-scale manufacturing or operations |
Why Work With an Employer of Record in Bangladesh?
Hiring employees in Bangladesh means dealing with local labor law, provident fund rules, individual income tax and reporting to Bangladeshi authorities. An Employer of Record in Bangladesh takes over the role of legal employer, handling compliant contracts, payroll, statutory contributions and HR administration while you manage the employee’s day to day work.
With an EOR, you can add Bangladeshi staff in full compliance with the Bangladesh Labour Act, 2006 without waiting months to register a local entity. The provider calculates and pays statutory contributions and income tax in Bangladeshi taka (BDT), manages benefits and payslips, and keeps you aligned with local filing deadlines. This makes EOR a low risk option for testing the Bangladeshi market, building remote teams or supporting a single key hire.
EOR partners can also support work and residence permits for foreign hires, onboarding and offboarding, and updates when Bangladeshi employment or tax regulations change. You keep strategic control over projects and performance, while the EOR absorbs most of the operational and compliance workload.
Top Employer of Record (EOR) Providers for Bangladesh
Several global Employer of Record platforms now include Bangladesh in their country coverage, giving you a simple way to hire Bangladeshi talent from the same system you use in other countries. These providers combine local legal expertise with centralized payroll, HR tools and clear pricing so you can forecast costs and stay compliant.
On EORQuotes.com you can compare leading EOR providers for Bangladesh by fees, supported employment models, benefits options and depth of local support. Reviewing multiple offers side by side makes it easier to find the Employer of Record in Bangladesh that matches your budget, risk tolerance and long term growth plans.
Multiplier provides a unified Employer of Record and HR operations platform designed to help companies hire, onboard, and pay talent across 150+ countries. It streamlines compliant employment contracts, payroll processing, statutory obligations, and benefits administration, giving teams a centralized system for global workforce expansion.
Core Services Offered by Multiplier:
With coverage spanning Europe, APAC, and 150+ global markets including Bangladesh, Multiplier supports localized onboarding, compliant payroll execution, and practical guidance so international teams can operate without setting up an entity.
- ✅ Fast onboarding with clear platform-led workflows
- ✅ Integrated contracts, payroll, compliance, and HR administration
- ✅ Helpful option for multi-country hiring, including Bangladesh
- ✅ Suitable for scale-ups building distributed teams
Multiplier is a modern, platform-first EOR provider that can reduce the admin load of international hiring, making it a practical fit for companies building teams in Bangladesh and across multiple markets.
Playroll is a modern Employer of Record (EOR) and global payroll platform built to help businesses hire, onboard, and pay employees in Bangladesh and 180+ international markets. The platform supports compliant employment contracts aligned with the Bangladesh Labour Act, payroll execution, statutory deductions (including Provident Fund), and HR administration, giving companies a practical way to hire in Bangladesh without setting up a local entity.
Key Services Offered by Playroll:
For hiring in Bangladesh, Playroll supports compliant onboarding through locally aligned contracts, payroll administration in BDT, statutory handling, and practical guidance around local employment requirements.
- ✅ Compliant onboarding support for employees in Bangladesh
- ✅ Centralized payroll and HR workflows with clear documentation
- ✅ Ongoing compliance support and reporting capabilities
- ✅ Strong option for companies scaling international or remote teams
Playroll offers a platform-led EOR solution that can reduce the admin load of international hiring. It can be a practical partner for companies hiring in Bangladesh while scaling across multiple markets.
Deel is a widely used Employer of Record (EOR) and global HR platform that helps companies hire, onboard, and manage employees or contractors in 150+ countries without setting up local entities. It centralizes employment contracts, payroll processing, compliance workflows, benefits administration, contractor tools, and mobility support, making it a strong option for distributed teams and international expansion.
Core Services Provided by Deel:
Deel supports market entry across Europe, APAC, Africa, and the Americas through a unified platform that standardizes onboarding, contract management, and payroll execution. For hiring in Bangladesh, coverage is typically delivered through in-country infrastructure or vetted local partners, depending on the service model and role requirements.
- ✅ Strong product suite for EOR, payroll, and contractor hiring
- ✅ Efficient onboarding with standardized documentation workflows
- ✅ Useful for multi-country teams that need centralized HR operations
- ✅ Flexible support for employment, contracts, and global mobility
Deel is a platform-led EOR provider with broad country coverage and mature global HR tooling. It can be a strong fit for companies hiring in Bangladesh while scaling across multiple markets under a single operational framework.
Papaya Global is an enterprise-focused Employer of Record (EOR) and global payroll platform built for multi-country teams. It enables companies to hire and manage talent across 160+ jurisdictions without setting up local entities, consolidating payroll, statutory compliance, benefits administration, and cross-border payments in one system.
Core Services Provided by Papaya Global:
For companies hiring in Bangladesh, Papaya Global can support compliant onboarding and payroll execution through its platform and in-country delivery model. This approach is often used by enterprises that want centralized oversight while keeping employment and payroll aligned with local requirements like the Bangladesh Labour Act.
- ✅ EOR, payroll, and compliance coverage across 160+ countries
- ✅ Unified platform for payments, onboarding, and global workforce management
- ✅ Built for enterprises and fast-scaling organizations with multi-country needs
- ✅ Strong option for teams prioritizing automation and centralized payroll visibility
Papaya Global combines enterprise-grade automation with multi-country payroll and compliance infrastructure, making it a strong fit for companies hiring in Bangladesh or managing international teams across multiple regions.
Top Employer of Record (EOR) Providers in Bangladesh
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How EOR Pricing Works: A Clear Breakdown
Choosing an Employer of Record (EOR) means working with a third-party partner that handles payroll, compliance, and employment on your behalf.
To make the right decision, it’s important to understand how different EOR pricing structures operate and what each one means for your budget.
Below is a straightforward overview of the most common EOR pricing models and how they may impact companies hiring in Bangladesh and internationally.
💲 Percentage-Based
The EOR charges a percentage of the employee’s monthly gross salary (including BDT allowances).
- Pros: Simple structure; scales easily with variable sales commissions.
- Cons: Costs spike during festival bonus months (Eid-ul-Fitr & Eid-ul-Adha).
📦 Flat Monthly Fee
A fixed monthly fee per employee, regardless of salary level or seniority.
- Pros: Predictable costs for Bangladesh hiring budgets and annual planning.
- Cons: Less cost-effective for entry-level support or factory-floor staff.
📊 Tiered Pricing
Rates are based on salary bands or headcount, offering volume discounts for larger teams.
- Pros: Ideal for scaling tech teams or BPO operations in Dhaka or Chittagong.
- Cons: Total monthly costs are harder to forecast during rapid recruitment drives.
⚙️ Custom Pricing
Negotiated rates based on volume, long-term commitment, and specific compliance needs.
- Pros: Optimized for enterprise needs and South Asia regional expansion.
- Cons: Requires a longer evaluation and legal contracting cycle.
How EOR Services Operate in Bangladesh
Using an Employer of Record (EOR) service in Bangladesh allows companies to hire and manage employees without opening a local legal entity. The EOR becomes the official employer in Bangladesh and handles contracts, payroll, tax reporting, and full statutory compliance. This is how the process works:
1. Understanding Your Hiring Needs
You discuss your hiring goals in Bangladesh with an EOR provider. They assess the type of talent you need, expected timelines, and whether the EOR model is the most efficient option for your expansion.
2. Creating Legally Compliant Employment Documents
The EOR prepares employment contracts that comply with the Bangladesh Labour Act. They handle documentation, onboarding, registration with authorities, and ensure the employee can start work quickly and legally.
3. Managing Payroll, Taxes, and Contributions
Once the employee is onboarded, the EOR manages payroll processing in Bangladeshi Taka, income tax withholding, Provident Fund contributions, benefits administration, and monthly statutory reporting. This keeps your company fully compliant with Bangladesh regulations, including payments to the National Board of Revenue and the Bangladesh Labour Welfare Foundation.
4. Day-to-Day HR Support and Offboarding
The EOR provides HR assistance such as contract renewals, performance documentation, employee support, and legally compliant termination procedures following the Bangladesh Labour Act. All actions follow local legal requirements to minimize risk.
An EOR in Bangladesh allows your company to expand or test the market efficiently, with full legal protection and minimal administrative burden.
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Business in Bangladesh – Info for Employers
Bangladesh has rapidly emerged as a strategic destination for global enterprise. Driven by a massive, youthful talent pool, the country is globally recognized for its world-leading textile manufacturing and a rapidly expanding digital and IT services sector. For international companies, doing business in Bangladesh offers a profound opportunity to scale operations and access highly skilled, cost-effective talent.
However, capitalizing on this market requires navigating a complex regulatory environment. The evolving legal framework under the Bangladesh Labour Act presents significant compliance hurdles for foreign employers. Without localized expertise, managing payroll compliance in Bangladesh, adhering to termination protocols, and handling statutory contributions, such as the provident fund and employee gratuity, can expose companies to legal and financial risks.
To bridge this gap, global companies are increasingly utilizing an Employer of Record (EOR) in Bangladesh. Partnering with a Bangladesh EOR enables international businesses to bypass the administrative burden of establishing a local legal entity. Through an EOR, you can hire top Bangladeshi talent swiftly, manage local payroll compliantly, and focus entirely on your core business growth.
Labor Law & Hiring Overview
Employment in Bangladesh is primarily regulated by the Bangladesh Labour Act 2006 and the Bangladesh Labour Rules 2015.
The standard work week is 48 hours, typically structured as six eight-hour working days, though five-day weeks are common in certain corporate and government sectors.
Employees are entitled to annual leave calculated at a rate of one day for every 18 days of work, totaling approximately 17 to 20 days per year for most adult workers.
Bangladesh observes 11 statutory festival holidays each year, encompassing religious festivals and national commemorative days.
Employment agreements must clearly define job responsibilities, salary in Bangladeshi Taka (BDT), probation terms, and termination procedures. The probation period for a worker whose function is of a clerical nature is six months, while for other workers, the period is three months. In the case of skilled workers, the probation period may be extended by an additional three months if the worker’s performance is not yet satisfactory.
The notice period for the termination of a permanent monthly-rated worker is 120 days if initiated by the employer, or 60 days if the worker resigns.
Collective bargaining and trade union activity are prevalent in industrial sectors like manufacturing and garments, where worker participation committees and collective agreements significantly influence working conditions and benefits.
| Category | Key Detail |
|---|---|
| Work week | Standard 48 hours (typically 6 days per week) |
| Paid leave | 1 day per 18 days worked, plus 10 days Casual leave and 14 days Sick leave |
| Public holidays | 11 statutory festival holidays (plus additional government-declared days) |
| Employer contributions | Gratuity (30 days' basic salary per year) and matching Provident Fund (8.33% – 10%) |
| Probation period | 6 months for clerical workers; 3 months for other workers (up to 6 months for skilled workers) |
| Notice period | 60 to 120 days (based on job classification and termination reason) |
Payroll & Taxation in Bangladesh
Payroll compliance is tightly regulated in Bangladesh under the Bangladesh Labour Act. Both employers and employees typically contribute to the Contributory Provident Fund (CPF), and employers must adhere to statutory requirements regarding the Workers Profit Participation Fund (WPPF).
The total employer cost generally includes a 10% basic salary contribution to the provident fund alongside statutory gratuity provisions. Employees contribute approximately 10% of their basic salary toward the provident fund as a primary form of social security.
Income tax is progressive, with rates ranging from 10% to 30% after an annual tax-free allowance of 350,000 BDT for general taxpayers. Employers must register workers with the National Board of Revenue (NBR) and submit quarterly reports detailing tax deductions at source.
| Contribution Type | Employer Share | Employee Share |
|---|---|---|
| Contributory Provident Fund (CPF) | 10% of basic salary | 10% of basic salary |
| Workers’ Profit Participation Fund (WPPF) | 5% of net profit (for eligible companies) | N/A |
| Group Insurance | Mandatory premium (for 100+ permanent workers) | N/A |
| Gratuity (Post-employment) | Provision for 30–45 days of basic salary per year | N/A |
| Total (indicative) | ~10% of basic + 5% profit share + Gratuity | 10% of basic salary |
Bangladesh Employee Benefits and Leave – What Employers Need to Know
Bangladeshi labor law provides employees with strong protections and clearly defined leave entitlements.
Below are the key benefits every employer should be aware of:
Employees receive annual leave calculated at one day for every eighteen days of work, sixteen weeks of paid maternity leave, and fourteen days of sick leave as regulated under the Bangladesh Labour Act. These entitlements are a major reason many companies use an EOR in Bangladesh to ensure full compliance with local labor rules.
Annual Leave & Public Holidays
In Bangladesh, employees in commercial and industrial establishments are entitled to annual leave at a rate of one day for every 18 days of work (approximately 17–20 days per year). Additionally, workers receive 11 paid festival holidays and 10 days of casual leave for urgent personal matters.
Maternity & Family-Related Leave
Female employees are entitled to 16 weeks of fully paid maternity leave (8 weeks prenatal and 8 weeks postnatal), provided they have been employed for at least six months. While paternity leave is not currently mandated by the Bangladesh Labour Act, many international companies and NGOs provide it as a contractual benefit.
Sick Leave Entitlements
Employees in the formal sector are entitled to 14 days of sick leave with full pay per calendar year. To claim this benefit, a medical practitioner's certificate is generally required. Unused sick leave typically cannot be carried over to the following year or encashed upon termination.
Bonuses & Allowances
It is standard practice in Bangladesh for employees to receive two festival bonuses per year, usually equivalent to one month's basic salary each (often paid during Eid). Employers also frequently provide house rent allowances, medical allowances, and conveyance (transport) support as part of the total compensation package.
Hiring Employees in Bangladesh Through an EOR
An Employer of Record (EOR) enables foreign companies to hire employees in Bangladesh without creating a local legal entity.
The EOR acts as the official employer of record, managing employment contracts, payroll, taxes, and statutory contributions, while your organization directs the employee’s day-to-day work.
This model ensures full compliance with the Bangladesh Labour Act, tax regulations, and social security reporting obligations.
EOR partners also support work permits, visa sponsorship through the Bangladesh Investment Development Authority, and local onboarding, reducing administrative costs and speeding up market entry.
An EOR solution in Bangladesh is ideal for:
• Testing the Bangladeshi market before establishing a subsidiary
• Hiring remote talent or technical specialists based in Bangladesh
• Expanding operations across South Asia quickly and compliantly
It is the simplest way to hire in Bangladesh with full legal protection and no permanent establishment risk.
Understanding Employment Costs in Bangladesh
Employers in Bangladesh should account for statutory benefits, applicable taxes, and specific fund contributions on top of the gross salary.
Unlike many countries with heavy state social security taxes, mandatory employer payroll contributions in Bangladesh are relatively low. They primarily consist of Provident Fund matching (typically 7–10% of the basic salary, if applicable) and Gratuity accruals. Employees contribute their matching share to the Provident Fund and pay income tax through standard payroll deductions.
To calculate the full cost of hiring—including the net salary, mandatory festival bonuses, and required benefits—you can use an employment cost calculator or consult your EOR provider.
The calculation typically includes:
Gross salary
Employer contributions (e.g., Provident Fund, Gratuity accrual, and mandatory Festival Bonuses)
Employee contributions (deducted from salary, such as their Provident Fund share)
Applicable income taxes (Tax Deducted at Source, or TDS)
Net take-home pay
Using an Employer of Record in Bangladesh simplifies this process by handling local payroll, statutory fund contributions, and tax compliance on your behalf, ensuring accurate monthly reporting and complete legal certainty.
Total Cost of Employment in Bangladesh
Estimate full employer cost in Bangladesh based on Finance Ordinance 2025 (Assessment Year 2026–27), including income tax, Provident Fund (PF) on basic salary, festival bonuses, and estimated EOR fees.
Employee Deductions
Income Tax (estimated): BDT
Provident Fund (Employee 10% of Basic): BDT
Net Salary (estimate): BDT
Employer Contributions
Provident Fund (Employer 10% of Basic): BDT
Festival Bonus & Leave (reserve): BDT
Estimated EOR Service Fee: BDT
Hiring Challenges in Bangladesh and How an EOR Helps Overcome Them
Hiring employees in Bangladesh presents unique opportunities, but it can be highly complex for foreign companies without a local legal entity. To remain compliant, international businesses must carefully navigate local regulations, payroll obligations, and distinct cultural expectations.
Here are the key factors global employers must manage:
Strict Employment Laws: The Bangladesh Labour Act dictates the legal framework for hiring. This essential Bangladesh employment law strictly regulates employment contracts, working hours (typically a 48-hour workweek), paid leave entitlements, and complex termination procedures.
Payroll Compliance and Taxes: Managing payroll in Bangladesh requires precision. Employers must handle mandatory statutory contributions, including the Provident Fund and Gratuity (a mandatory severance accrual). Additionally, companies must ensure accurate income tax deductions and reporting to the National Board of Revenue (NBR).
Competitive Talent Markets: Recruitment is increasingly competitive, especially in high-growth sectors like IT and software services, ready-made garments (RMG), and pharmaceuticals. Because top Bangladeshi talent frequently seeks remote opportunities with global firms, offering attractive, compliant employment terms is critical for retention.
Cultural Expectations and Mandatory Bonuses: Understanding local workplace culture is vital. Bangladeshi professionals highly value job security and legally mandated benefits. Most notably, employers are required to provide Festival Bonuses (usually two full basic salaries per year, coinciding with Eid festivals), a crucial requirement that differs significantly from Western payroll practices.
Navigating these legal and cultural nuances independently exposes foreign companies to significant compliance risks. This is why partnering with an Employer of Record (EOR) in Bangladesh provides a major strategic advantage. An EOR acts as the legal employer on paper, seamlessly managing local HR, payroll, and tax compliance, allowing you to focus on managing your newly hired team.
Key advantages of using an EOR in Bangladesh
The EOR becomes the official employer for legal and administrative purposes, handling every step of HR, payroll, tax compliance, and employee documentation in Bangladesh. This ensures all contracts, benefits, and contributions follow national regulations, without requiring your company to open a Bangladeshi legal entity.
An EOR also makes it possible to hire Bangladeshi employees quickly, onboard them smoothly, and stay compliant from the first day of employment.
• Compliance assurance:
The EOR manages all legal and payroll obligations, ensuring every contract, contribution, and report meets Bangladesh labor and tax laws.
• Lower setup costs:
You avoid the need to create a local company, hire accountants, or manage local registrations with the Bangladesh Investment Development Authority (BIDA).
• Fast hiring:
Onboard Bangladeshi professionals in days instead of waiting months for entity registration and compliance setup.
• Talent flexibility:
Add or remove staff as your operations grow, without long-term local establishment commitments.
• Reduced administrative risk:
The EOR assumes employer-of-record responsibilities, including payroll accuracy, statutory contributions like Provident Fund, and adherence to NBR requirements.
Partnering with an EOR allows you to focus on business expansion while your provider manages every aspect of hiring and compliance — ensuring that your workforce in Bangladesh is fully protected and legally compliant.
How to Choose the Best Employer of Record (EOR) Provider in Bangladesh
For companies entering Bangladesh, partnering with an Employer of Record (EOR) streamlines hiring, ensures compliance with the Bangladesh Labour Act, and removes the need to establish a local entity. Below are the main factors to consider when selecting the best EOR partner in Bangladesh:
• Bangladesh Labor Law Expertise
Choose an EOR with a strong understanding of Bangladesh’s employment regulations, including the Bangladesh Labour Act 2006, National Board of Revenue (NBR) tax requirements, Provident Fund contributions, and gratuity obligations. This helps avoid compliance risks and administrative delays.
• Service Flexibility
Look for an EOR that provides end-to-end support, including payroll in BDT, contract management, statutory benefits such as festival bonuses and leave entitlements, onboarding, and HR administration tailored to your workforce needs in Bangladesh.
• Cost Transparency
Ensure the EOR provides predictable pricing with no hidden fees. Review how the cost structure aligns with Bangladesh’s required employer contributions and your company’s hiring budget.
• Technology and Automation
Select an EOR with a modern, automated platform for payroll processing, compliance tracking, and document management. Scalable tools will support your growth in Bangladesh and across the region.
• Customer Support
Strong support is essential, especially for companies new to Bangladesh. Choose a provider with responsive assistance, fast issue resolution, and the ability to handle cross-border communication efficiently.
• Local Presence
An EOR with in-country partners or offices in Bangladesh offers deeper legal insight, better cultural understanding, and quicker handling of local administrative requirements.
Choosing the right Employer of Record in Bangladesh is crucial for maintaining full compliance, managing employment risks, and supporting your long-term growth in South Asia. Earlier in this article, we introduced several reputable EOR providers that operate in Bangladesh. All are reliable, but if we narrowed it down to the top performers, these would be the ones best suited to support your expansion.
Top EOR Providers in Bangladesh
Searching for the best Employer of Record (EOR) in Bangladesh? The providers below help international companies hire employees in Bangladesh without setting up a local entity. Each partner offers full-service payroll execution, HR compliance, and workforce administration, helping you stay aligned with Bangladeshi employment rules and monthly reporting obligations. Compare these trusted Bangladesh EOR providers to find the right partner for your market entry or team expansion.
Need help selecting the best EOR partner?
Get Free EOR QuotesExplore top Employer of Record providers and get customized recommendations for your company.
Conclusions
Expanding into Bangladesh with the support of a trusted Employer of Record (EOR) is one of the most efficient and reliable ways to hire local talent while ensuring full compliance with Bangladeshi labor legislation. An EOR partner manages payroll, contracts, benefits, and statutory reporting, allowing your business to operate locally without opening a Bangladeshi legal entity.
To identify the best EOR provider in Bangladesh, compare leading platforms on EORquotes.com. Our country guides make it easy to assess pricing models, local compliance expertise, platform quality, and service coverage before choosing the right partner.
Start today and discover which EOR provider offers the best combination of speed, compliance, and cost-effectiveness for your expansion into Bangladesh.
Frequently Asked Questions (FAQs)
According to the Bangladesh Labour Act 2006, the standard work week consists of 48 hours, typically spread over six days with one day of weekly rest. Total working hours including overtime cannot exceed 60 hours in a week, and the average over a year must not exceed 56 hours per week. Overtime must be paid at double the ordinary rate of basic wages.
Employees are entitled to several types of leave. Casual leave is provided for 10 days per calendar year for unforeseen events. Sick leave is provided for 14 days with full pay. Annual or privilege leave is earned at a rate of one day for every 18 days of work performed during the previous 12 months for adult workers in non-plantation sectors.
Female employees who have been employed for at least six months are entitled to 16 weeks of paid maternity leave. This is typically divided into eight weeks before the expected date of delivery and eight weeks after the birth. The payment is based on the average daily wage earned by the employee.
All salaries and statutory benefits must be calculated and paid in Bangladeshi Taka (BDT). Employers must ensure that payments are made within seven working days of the end of the wage period to remain compliant with local regulations.
Yes, it is standard practice and a regulatory requirement under the 2015 Labour Rules for employees who have completed at least one year of service to receive two festival bonuses per year. Each bonus is typically equivalent to one month of basic salary and is usually paid before major religious festivals.
For permanent employees in clerical roles, the typical probation period is six months. For other workers, the period is generally three months. If an employee’s performance is not satisfactory during this time, the employer may extend the probation or terminate the contract without notice.
For permanent monthly-rated workers, an employer must provide 120 days of notice for termination. If a permanent monthly-rated employee wishes to resign, they must provide 60 days of notice to the employer. In both cases, payment in lieu of notice is permitted under the Bangladesh Labour Act.
The Ministry of Labour and Employment oversees labor regulations through the Department of Inspection for Factories and Establishments (DIFE). Individual and corporate income taxes, as well as payroll tax compliance, are managed by the National Board of Revenue (NBR).
Certain companies meeting specific thresholds regarding paid-up capital or asset value are required to establish a Workers Profit Participation Fund (WPPF), contributing 5 percent of their net profit to the fund. While a national social security system like those in the West is not yet fully implemented, many companies maintain a Contributory Provident Fund.
Employees are entitled to at least 11 days of paid festival holidays each year. The specific dates for these holidays are usually announced by the government at the start of each calendar year and include both national secular holidays and religious festivals.
Legal References & Data Sources
All employment, payroll, and tax information on this page is derived from official Bangladeshi government sources and statutory authorities to ensure factual accuracy and compliance with current law.
- • Bangladesh Labour Act, 2006 (with 2013, 2018, and 2023 Amendments) – the primary legislation governing employment, published by the Government of the People’s Republic of Bangladesh.
- • Ministry of Labour and Employment (MoLE): regulation of employment standards, minimum wage boards, and industrial relations – https://mole.gov.bd
- • Department of Inspection for Factories and Establishments (DIFE): workplace safety, labor inspection, and enforcement of employee welfare standards – https://dife.gov.bd
- • National Board of Revenue (NBR): personal income tax regulations, PAYE (Pay-As-You-Earn) calculations, and payroll tax reporting – https://nbr.gov.bd
- • Bangladesh Bureau of Statistics (BBS): official labor force surveys, economic indicators, and employment statistics – https://bbs.gov.bd
Data verified and last updated: March 2026.
