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Employer of Record (EOR) in Bangladesh

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
Bangladesh Introduction

Bangladesh is the eighth-most populous country in the world, located in South Asia. It’s one of the world's fastest-growing economies, and one of the fastest growing middle-income countries. There is no payroll taxes for employers in Bangladesh.

Employment Terms

Types of Contracts

It is possible to do any type of contracts in Bangladesh - indefinite, fixed-term, and part time contracts.

Job Title Restrictions

For local employees there are not any job title restrictions, however for expats it will depend on the case and the job description.

Working Hours

The standard workweek in Bangladesh is 40 hours per week, at 8 hours per day. The workweek goes from Sunday to Thursday with the days off being Friday and Saturday. Any work exceeding the standard working hours is to be paid out as overtime at 2x the salary, and is regulated at up to a maximum of 10 hours of work per day and 60 hours per week.

Minimum Wage

The minimum wage in Bangladesh varies based on the sector and position.

Probation Period

In Bangladesh, the duration of the probationary period can vary and is typically stated in the employment contract or company policy. Normally, the minimum probation will be 3 months, and the maximum could be 6 months.

Taxes & Local Employment Costs

Employee Taxes

The TDS, or personal income tax (PIT), will be calculated according to employee income based on the tax slab rates. According to the tax slab, the rate of TDS deduction on a salary will range from 10% to 30% depending on the employee salary personal income.

Employee income tax is calculated as follows:

  • up to BDT 350,000 - 0%
  • over BDT 350,000 up to 450,000 - 5%
  • over BDT 450,000 up to 750,000 - 10%
  • over BDT 750,000 up to 1,150,000 - 15%
  • over BDT 1,150,000 up to 1,650,000 - 20%
  • over BDT 1,650,000 - 25%

For female tax payers and male tax payers above the age of 65, the tax-free limit is BDT 400,000.

Employer Taxes & Contributions

The TDS (Tax Deduction at Source) or tax withheld, is deducted at a rate of 10% by banks when salary is transferred to the employee. Any company operating in Bangladesh has to pay the Bangladeshi government a TDS of 11.1111%.

Types of Leave

Annual Leave (Vacation)

An employee who completes one year of continuous service at an institution is usually entitled to 1 paid time off day with wages for every 18 working days. The leave shall accrue and be carried over according to the applicable law.

Sick Leave

Employees are entitled to 14 days per year of paid sick leave, paid for by their employer. Employees need to show a medical certificate for sick absences to receive leave and pay.

Maternity Leave

Pregnant employees who have been employed at a company for 6 consecutive months are entitled to 16 weeks of paid maternity leave — 8 weeks before the birth and 8 weeks after the birth. Pregnant employees who have worked at a company for less than 6 months or who already have 2 surviving children are usually eligible for only unpaid leave. Employees are not allowed to return to work for at least 8 weeks after giving birth.

Paternity Leave

Paternity leave is not mandated by law in Bangladesh.

Public Holidays

Public Holidays will be announced by the government every year as it is set up by the lunar calendar. Employees are generally entitled to festival holidays with pay, but the holidays are determined by the employer. Employees may be required to work on a festival holiday, but shall receive 2 compensatory paid holidays and a substitute holiday.


Festive Bonuses

Every employee is entitled to 2 festival bonuses in a year, each equivalent to:

  • Option 1: 50% of monthly gross salary
  • Option 2: Basic Salary amount

The option should be decided by the employer and should be the same for all employees. Employees who have been employed by the company for at least 1 year are eligible for two festival bonuses per year.

Termination Process

Termination Process

Employees who are terminated due to physical or mental ailments are entitled to severance pay. Employees who are found guilty of misconduct or a criminal offense do not need a notice nor do they receive severance.

Notice Period

A permanent employee's contract can be terminated by the employer if they give 30 days notice in writing. The notice period will be one month more or less, depending on the organization's policy. The minimum notice period during probation is 7 days. After probation, the minimum notice period is one month.

Statutory Payments

The labor act allows an employer to terminate the contract of an employee for convenience. In cases where it is not possible to give the employee a notice, an employer can make compensation in lieu of the notice. In this case, the employee must receive the compensation at the rate of 30 days wages for each completed year of service.

A permanent employee may resign by giving 30 days’ notice in writing to the employer, but if the employee intends to resign without any notice, they may do so by paying the employer an amount equal to the wages for the period of notice.

Additional Information

Bangladesh's fiscal year is from July 1st to June 30th.

Bangladeshi Taka (BDT)
Capital City:
168 Million
Cost of Living Rank:
VAT (Valued Added Tax):
Employer TaxES

★  11.11% - TDS

Get Started in 3 Steps


Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.


Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.


Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

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How Remofirst employs in Bangladesh

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Bangladesh get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Bangladesh are paid on time in Bangladeshi Taka (BDT). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Bangladesh, they can speak with our customer support team to get answers from our team of experts.