Hire employees
and contractors in Bangladesh

Capital city
Dhaka
Currency
Taka (৳) (BDT)
Population size
161,376,708 (2018)
Languages spoken
Bengali, Chittagonian, Rangpuri, Sylheti
01

Grow your team in Bangladesh with Remote

Remote currently offers contractor payment and management services in Bangladesh. We are busy building our own entity in the country to provide you with best possible employment solutions for your employees.

  • Capital city
    Dhaka
  • Currency
    Taka (৳) (BDT)
  • Languages spoken
    Bengali, Chittagonian, Rangpuri, Sylheti
  • Population size
    161,376,708 (est. 2018)
  • Ease of doing business
    Below Average (2020)
  • Cost of living index
    33.31 (2021)
  • Payroll frequency
    Monthly
  • VAT - standard rate
    15%
  • GDP - real growth rate
    8.2% (2019)
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Facts & stats

The People’s Republic of Bangladesh (Bengali: গণপ্রজাতন্ত্রী বাংলাদেশ) is a parliamentary constitutional republic, that’s neighbored by India and Myanmar and is boasts the honor of being the eight-most populous country in the world.

Home to the Bengal tiger, the world’s longest stretching beach, an outsized textile industry, and the most expansive mangrove forest in the world, Bangladesh combines Asian charm with rich culture and profuse biodiversity.

While Bangladesh still has work to do reducing inequality and eliminating extreme poverty, globalization has been opening up the nation’s economy, creating a new breed of experts your business can depend on as you expand across the globe.

Bangladesh Map
Bangladesh risks illustration

Risks of misclassification

Bangladesh, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.
03

Employing in Bangladesh

Employment regulation is spelled out across the 2006 Labor Act and the 2015 Labor Rules, with both spelling out employee protections and workers’ rights for Bangladesh’s workforce of 67 million.

Employees in Bangladesh enjoy protection against discrimination based on age, religion, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Bangladesh.

Public holidays

Date Holiday Name Extra information
Shaheed Day
Sheikh Mujibur Rahman's Birthday
Independence Day
Shab e-Barat
Bengali New Year
May Day
Jumatul Bidah
Laylat al-Qadr
Eid ul-Fitr Holiday
Eid ul-Fitr
Eid ul-Fitr Holiday
Buddha Purnima
Eid ul-Adha Holiday
Eid ul-Adha
Eid ul-Adha Holiday
National Mourning Day
Ashura
Shuba Janmashtami
Vijaya Dashami
Eid-e-Milad un-Nabi
Victory Day
Christmas Day
Minimum
Wage

The minimum wage in Bangladesh is fixed at 1,500 taka per month ($17.63) for employees who’re not covered by industry-specific wages; workers in the garment industry (one of Bangladesh’s largest employment sectors) earn a minimum of 8,000 takas ($94) per month.

Payroll
Cycle
For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
04

Competitive benefits package in Bangladesh

Remote can help you provide a competitive and compliant benefits package for your employees in Bangladesh. If you have questions or would like to offer a custom benefit, let us know and we can help.

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Taxes in Bangladesh

Learn how employment taxes affect your payroll and your employees’ paychecks in Bangladesh.

  • Employer

    • 5% - Workers Profit Participation Fund (employers only subject depending on eligibility)
  • Employee

    • There are no mandatory social payroll taxes imposed in Bangladesh.
  • Income Tax Rates

    • BDT 300,000 - 600,000: 10%
    • BDT 600,000 to 1,000,000: 15%
    • BDT 1,000,000 to 1,300,000: 20%
    • BDT 1,300,000+: 25%
06

Types of leave

Paid
time off

After spending an entire year working for an employer, employees are entitled to one day’s vacation for every 18 days worked, apart from certain exceptions:

  • 1 day every 22 days worked, in the case of tea plantation workers, and
  • 1 day every 11 days worked, in the case of newspaper workers.

This equates to between 11 – 22 days off annually.

Public
holidays

There are 15 public holidays in Bangladesh.

Sick
leave

Employees are generally entitled to annual paid sick leave of 14 days. The employee must present a medical certificate to receive sick leave. Sick leave may not be carried forward from year to year.

Maternity
leave

Female employees who have worked for at least six months are entitled to eight weeks of paid maternity leave before the birth and eight weeks of paid leave after the birth. Women who have worked less than six months or who already have two other surviving children are generally eligible for unpaid leave. Women are forbidden to work for 8 weeks after the birth of the child under the national employment legislation.

Paternity/Parental
leave

There is no provision for mandatory paternity leave under Bangladeshi law.

Casual
leave

Workers are generally entitled to 10 days of paid casual leave each calendar year. This leave cannot be carried forward.

07

Employment
termination

Termination process

Employee contracts can either be terminated at will or with just cause established, such as dishonesty, negligence, fraud, or any other work-related offenses.

Notice period

Employers are only required to provide prior notice to employees who’re being let go without any justification. This mandatory period ranges from 60 days for general workers to 120 days for employees who’re compensated monthly.

In case of termination by the employer: 30 days notice is required for monthly rated workers and 14 days in the case of other workers (payment in lieu is also an alternative).

In case of termination by the employee: A temporary worker may resign from service by giving the employer in writing with 30 days notice in the case of a monthly rated worker or 14 days for other workers (payment in lieu is also an alternative).

Severance pay

Gratuity is a discretionary monetary benefit scheme offered by an employer upon completion of service of an employee. For every type of separation, the employee becomes entitled to an amount as either 'compensation' or 'gratuity' (if any), whichever is higher as stated in the relevant provisions under the Bangladesh Labour Act, 2006 (hereinafter referred to as BLA).

In case, if an organisation does not have any gratuity scheme, then the employer is liable to pay compensation, as per the BLA at the time of separation. Gratuity or compensation payment shall be in addition to any payment of wage/salary in lieu of notice due to separation of service of an employee on different grounds.

An employee will be entitled to gratuity only when he has been in uninterrupted service for more than 1 year with the organization. Completion of more than 6 months of service will be deemed as 1 year from the second year.

Probation periods

Employees in Bangladesh follow a 3 month probation period which is expandable up to 6 months in limited circumstances.

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