Expand your global workforce in Bangladesh

Name: Extensive Guide to Employment in Bangladesh
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Author: Multiplier

Your guide to the employment landscape, working customs and local labor laws in Bangladesh

Capital

Dhaka

Currency

Bangladeshi taka

Languages

Bengali

GDP per Capita

$ 2,728.46

Employer Tax

Payroll Frequency

Monthly

Talent overview

Bangladesh has one of the emerging and growth-leading economies in the world. Its economy ranks 29th in purchasing power parity and ranks second in South Asia, after India. Bangladesh’s major industries include textiles, pharmaceuticals, shipbuilding, steel, electronics, energy, construction materials, chemicals, ceramics, food processing, and leather goods. It is also one of the Next Eleven emerging markets.

Major economic hubs:

Dhaka, Chittagong, Rajshahi, Khulna

Skills in demand:

Data Analysis, Customer Service, IT Skills, Digital Marketing

Top local universities in Bangladesh

Bangladesh University of Engineering and Technology

RANKING

Bangladesh : 1

World : 2678

University of Dhaka

RANKING

Bangladesh : 2

World : 2736

BRAC University

RANKING

Bangladesh : 3

World : 2913

North South University

RANKING

Bangladesh : 4

World : 3322

National University, Bangladesh

RANKING

Bangladesh : 5

World : 3907

Top Local Job Boards

Bdjobs.com , BDJobsToday.com , JOB.COM.BD

Number of LinkedIn users

7,046,000

Top Recruitment Agencies

Amco Enterprise Limited, Job Placement BD Ltd., Catharsis International

Where to find talent

Top Local Job Boards:

Top Local Job Boards

Number of LinkedIn users:

Number of LinkedIn users

Top Recruitment Agencies:

Salary Data

Below are the average monthly salaries for some jobs in the country:

Job designation	Average Monthly Salary (BDT)	Annual Monthly Salary (USD)
Financial Analyst	33,500	309
Office Manager	23,600	217
Business Analyst	33,500	309
Project Manager	33,000	304
Graphic Designer	17,200	158
Developer/Programmer	23,900	220
Sales Manager	45,200	416

Employ in Bangladesh

Employing in Bangladesh

The employment laws of Bangladesh are governed by the Labor Act of 2006 and Labor Rules of 2015. In order to onboard an individual, the employer must know the statutory provisions and regulations related to employment conditions in Bangladesh. This section mentions all the necessary information.

Employee Contract

‍Employment contracts are preferred in the local language – Bengali or English, whichever is locally used. The employer has to mention all the required details of the employee along with bonuses, allowances and leaves.

Probation Period

The probationary period followed in Bangladesh of a clerical employee is 6 months, while all other employees are subject to 3-month probation.

Public and Provincial holidays

Date	Name	Type
January 1	New Year’s Day	Local Holiday
January 10	Bangabandhu Homecoming Day	Local Holiday
January 27	Shab-e-Meraj	Local Holiday
February 15	Shab e-Barat	National Holiday
February 21	Language Martyrs’ Day	National Holiday
February 26	Maha Shivaratri	Local Holiday
March 2	National Flag Day	Local Holiday
March 5	Ash Wednesday	Local Holiday
March 26	Independence Day	National Holiday
March 28	Shab-e-qadr	National Holiday
March 29	Eid ul-Fitr Holiday	National Holiday
March 30	Eid ul-Fitr Holiday	National Holiday
March 31	Eid ul-Fitr	National Holiday
April 1	Eid ul-Fitr Holiday	National Holiday
April 2	Eid ul-Fitr Holiday	National Holiday
April 14	Bengali New Year	National Holiday
April 17	Maundy Thursday	Local Holiday
April 18	Good Friday	Local Holiday
April 19	Holy Saturday	Local Holiday
April 20	Easter Day	Local Holiday
April 21	Easter Monday	Local Holiday
May 1	May Day	National Holiday
May 11	Buddha Purnima/Vesak	National Holiday
June 5	Eid al-Adha Holiday	National Holiday
June 6	Eid al-Adha Holiday	National Holiday
June 7	Eid al-Adha	National Holiday
June 8	Eid al-Adha Holiday	National Holiday
June 9	Eid al-Adha Holiday	National Holiday
June 10	Eid al-Adha Holiday	National Holiday
July 1	July 1 Bank Holiday	National Holiday
July 6	Ashura	National Holiday
August 16	Janmashtami	National Holiday
September 5	Eid e-Milad-un Nabi	National Holiday
October 1	Mahanabami	National Holiday
October 2	Durga Puja	National Holiday
December 16	Victory Day	National Holiday
December 24	Christmas Eve	Local Holiday
December 25	Christmas Day	National Holiday
December 26	Boxing Day	Local Holiday
December 31	New Year’s Eve	National Holiday

Employee Leaves

Type of leave	Time Period	Mandatory
Annual leave/Earned Leave	10 days	Yes
Sick Leave	14 days	Yes
Maternity Leave	16 weeks	Yes

Leave Compliance

Payroll in Bangladesh

Payroll cycle

The labor law states that employees’ wages must be paid within 7 days after the last day of the wage period.

Minimum wage

The minimum wage in Bangladesh is at 1,077 BDT per month.

Overtime pay

‍Working beyond the normal hours is considered overtime and is paid at twice the regular rate.

How taxes work

Employer Payroll Tax:

There is no employer contribution in Bangladesh. However, the employer must contribute 5% of the profit to the Workers Profit Participation Fund as Social Security Contribution.

Employee Payroll Tax:

There is no employee contribution in Bangladesh.

Employee Income Tax:

Income tax varies depending on the residential status. Residents of Bangladesh are taxed for worldwide income, while non-residents are taxed only on the income generated from inside the country.

Residents are levied income tax on progressive tax rates, which ranges from 0% to 25%. For non-residents, it is at a flat rate of 30%.

Annual Taxable Income (Bangladeshi Taka, BDT)	Income Tax Rate (%)
0 to 350,000	Exempt
Next 100,000	5%
Next 400,000	10%
Next 500,000	15%
Next 500,000	20%
Amount above	25%

‍VAT:

The standard rate of VAT followed is 15%.

Bonus

13th Month Pay:

‍After the first year of employment, the employees of Bangladesh are entitled to a festive bonus. Employers may provide two festive bonuses every year. Ideally the bonus should be equal to basic salary or 50% of the gross salary.

Employee Benefits:

Employers must provide the below mentioned benefits to the employees.

Festive Bonus
Maternity leave
Health Insurance

Employee offboarding

Termination process

In Bangladesh, termination of employment can be made either by the employer or the employee. Some of the grounds on which an employer can terminate an employee include – Redundancy, medicinal incapacity, misconduct, and conviction of crime.

Notice period

The notice period for employees during the probationary period ranges from 7 to 30 days, while for permanent employees the range is from two months to four months.

Severance pay

A terminated worker is entitled to a compensation of 30 days’ wage for every completed year of service. Beyond a term of 10 years of service, it will be 45-days pay for each year completed. For employees dismissed on the grounds of misconduct, the payment will be of 15-days for each completed year.

Visa and
immigration

Employees from outside Bangladesh need an employment or work visa, which is issued by the Bangladesh Investment Development Authority (BIDA). An individual have to apply for the Employment or work visa. The individual have to submit the employment contract along with personal documents and a letter of recommendation from Bangladesh Export Processing Zones Authority (BEPZA) and the Board of Investment (BOI).

Your employment toolkit for Bangladesh

Work Permit

Background Checks

Benefits & Compensation

Starting business

How to hire

Sole Proprietorship

Payroll

Employer of record

Subsidiaries

Employment Act

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Expand your global workforce in Bangladesh

Talent overview

Data Analysis, Customer Service, IT Skills, Digital Marketing

Top local universities in Bangladesh

Bangladesh University of Engineering and Technology

RANKING

University of Dhaka

RANKING

BRAC University

RANKING

North South University

RANKING

National University, Bangladesh

RANKING

Top Local Job Boards

Number of LinkedIn users

Top Recruitment Agencies

Where to find talent

Salary Data

Employ in Bangladesh

Employing in Bangladesh

Employee Contract

Probation Period

Public and Provincial holidays

Employee Leaves

Payroll in Bangladesh

The labor law states that employees’ wages must be paid within 7 days after the last day of the wage period.

The minimum wage in Bangladesh is at 1,077 BDT per month.

‍Working beyond the normal hours is considered overtime and is paid at twice the regular rate.

How taxes work

Employer Payroll Tax:

Employee Payroll Tax:

Employee Income Tax:

‍VAT:

Bonus

13th Month Pay:

Employee Benefits:

Employee offboarding

Visa and immigration

Your employment toolkit for Bangladesh

Work Permit

Background Checks

Benefits & Compensation

Starting business

How to hire

Sole Proprietorship

Payroll

Employer of record

Subsidiaries

Employment Act

Expand into150+ countries

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Visa and
immigration

Expand into
150+ countries