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Asia

Bangladesh

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Employer of Record (EOR) in Bangladesh

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • 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.

Paid Leave and Statutory Leave

Parental 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. While there is currently no paternity leave in Bangladesh, the government is reviewing it in 2022.

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.

Paid Leave

Bangladesh has 21 national holidays but employees are only allowed to take 11 of them as paid days off (it’s up to the employer which days these are). Employees in Bangladesh are generally entitled to 10 days of paid time off per year, although this varies by industry.

Wage Requirements and Working Hours

The National Minimum Wage Board of Bangladesh determines the minimum wage for each sector every 5 years. Currently, the minimum wage is BDT 1,500 per month (but varies by sector). 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 and is regulated at up to a maximum of 10 hours per day and 60 hours per week.

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

In Bangladesh, termination of employment usually requires written notice from the employer of 120 days for monthly rated workers and 60 days for any other workers. Employers can also pay employees for the notice period in lieu of working through the period.

Severance Pay

Employees in Bangladesh who have worked at least 1 year at a company are entitled to severance pay, which is equal to 30 days of wages for each year at the company.

Additional Information

N/A

OVERVIEW
Language(s):
Bengali
Currency:
Bangladeshi Taka (BDT)
Capital City:
Dhaka
Population:
168 Million
Cost of Living Rank:
118th
VAT (Valued Added Tax):
15%
Employer TaxES
0%
(estimated)

★  0% - N/A

Simplified Global HR and Payroll.
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We've made the process really simple
with only 3 steps.

1

Remote candidate

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

2

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.

3

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), 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 use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.