Powering Payroll, Compliance & Workforce Management in Bangladesh

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Bangladesh at a Glance

Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in 

Bangladesh
Work Permits & Visas
  • Business visa: For owners/CEOs establishing businesses.
  • Tourist visa: For travel purposes.
  • Student visa: For studying in Bangladesh.
  • Employment visa: For foreign nationals working in the country.
  • Investor visa: For those investing in businesses.
  • NGO visa: For NGO workers.
  • Work visas may be single, double, or multiple entry.
  • Permits typically valid for 3 months; extendable.

Payroll
  • Payroll Cycle: Usually monthly (no fixed calendar).
  • Income: Salaries, wages, allowances; after 1 year, employees receive 2 festival bonuses annually.
  • Deductions: Income tax, insurance contributions (if applicable).
  • Employer Contributions: Workers’ compensation, insurance contributions (if agreed).
  • Social Security: No universal system; provident fund must be established if requested by ¾ of staff — employer and employee contribute 7–8% each.
  • Minimum Wage: BDT 12,500/month.
Employment Contracts
  • Probation: 6 months for clerical workers; 3 months for others.
  • Working Hours: 48/week; max 60 with overtime, average capped at 56/year.
  • Overtime Pay: 200% of base salary + allowances.
  • Notice Periods: 120 days (monthly-rated) or 60 days (other workers); pay in lieu allowed.
  • Severance: 30 days’ salary for each year of service after 1 year.
  • Termination: Allowed for incapacity, ill health, redundancy, or misconduct.
  • Non-Compete: May be included in contracts.
Employee Benefits
  • Annual Leave: 1 day per 18 days worked (retail, industrial, transport) | 1 day per 22 days (tea plantations) | 1 day per 11 days (newspaper employees).
  • Sick Leave: 14 paid days/year (newspaper employees receive partial pay).
  • Maternity Leave: 16 weeks paid (8 before, 8 after) for employees with 6+ months of service; not available if the worker already has 2 children.
  • Other: Private health, life, retirement, and workers’ compensation schemes available.
  • Public Holidays: 15 per year.
Tax Overview
  • Tax Year: July 1 – June 30.
  • Residents: Present ≥183 days/year or ≥90 days in current year plus ≥365 days over previous 4 years.
  • Non-Residents: Taxed at 30% flat rate (excluding Bangladeshi non-residents).
  • System: Progressive 10%–30%.
  • Exemptions: Higher exemption thresholds for women, senior citizens (65+), disabled persons, war-wounded freedom fighters, and third gender.
  • Taxable Income: Salaries, wages, allowances, and investment income.
  • Capital Gains: Generally taxed at 15%.
  • DTAs: Multiple in force.
Personal Income Tax
Bangladesh — Personal Income Tax Rates
Total Income (BDT) Tax Rate
Up to 350,000Nil
Next 100,0005%
Next 400,00010%
Next 500,00015%
Next 500,00020%
Next 2,000,00030%

Full Country Guide

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Bangladesh

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Bangladesh
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Compliance

Stay ahead of legal changes. We ensure your payroll and employment practices remain fully compliant with

Bangladesh

's laws

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Whether you need Payroll Outsourcing, Employer of Record services, or advanced Payroll Software, our experts are here to help you find the right solution. Contact us today for support with payroll, compliance, and hiring in

Bangladesh