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Bangladesh

Basic Economic Summary

Bangladesh is one of the emerging and growth-leading economies of the world, and is also one of the Next Eleven countries, having Asia's fastest real GDP growth rate. The economy has the world's 39th largest economy in terms of market exchange rates and 29th largest in terms of purchasing power parity, which ranks second in South Asia after India. The growing industries include travel and tourism, agriculture, transport, science and technology, and energy and infrastructure.

Basic Information

  • Local Languages: Bengali, Tibeto-Burman, English
  • Major Economic Hubs: Dhaka, Chittagong, Rajshahi, Khulna
  • Capital: Dhaka
  • Currency: Bangladeshi taka
  • Population: 163 million
  • Time Zone: UTC+6
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD): 2,554 
  • Exchange Rate (BDT/USD): 0.012

Local Universities

Renowned Local Universities:

University Ranking
University of Dhaka Ranking in Bangladesh: 1
World Ranking: 1586
Bangladesh University of Engineering and Technology Ranking in Bangladesh: 2
World Ranking: 1604
Shahjalal University of Science & Technology Ranking in Bangladesh: 3
World Ranking: 1897
North-South University Bangladesh Ranking in Bangladesh: 4
World Ranking: 2134
Rajshahi University Ranking in Bangladesh: 5
World Ranking: 2224

You can find further information about the top universities in Bangladesh here.

Salary Data

The table below shows the average salaries of some jobs in Bangladesh. Please refer to Salary Explorer for more information.

Job Title Average Salary (BDT)
Chartered Accountant 23,600
Pilot 45,500
Business Analyst 33,500
Project Manager 30,500
Engineer 26,200
Developer/Programmer 27,100
Sales Manager 17,300

Talent Sourcing Tips

Number of LinkedIn Users (2021): 2,907,000

Top Local Job Portals: Bdjobs.com , BDJobsToday.com , JOB.COM.BD

Top Recruitment Agencies: Amco Enterprise Limited, Job Placement BD Ltd., Catharsis International

Taxes

Employer Payroll Tax

There are no payroll taxes in Bangladesh. However, there are plans to introduce mandatory pension funds by 2021.

Employee Monthly Income Tax

Income tax is levied annually as follows:

Rate Annual Income Level in BDT
0.00% Up to Tk. 300,000
5.00% Next Tk. 100,000
10.00% Next Tk. 300,000
15.00% Next Tk. 400,000
20.00% Next Tk. 500,000
25.00% On balance

The employee income tax rates can be found here.

Non-residents have to pay the rate of income tax of 30% on total income.

Minimum Wage & Payroll

Minimum Wage

The legal minimum wage is BDT 26,000 per month.

Payroll Cycle

The employee must be paid wages within 7 days after the last day of the wage period.

Bonus

13th month salary

The employee must be paid wages within 7 days after the last day of the wage period.

Employee stock option

There is no provision for employee stock options in Bangladesh, which does not make it mandatory for employers to provide stock options. However, eligible startups and businesses that provide incentives such as employee stock options would have to comply with the regulations pertaining to employee stock options. Further details on regulations can be found here.

Working Hours & Statutory Leave

Working hours

The average working hour is 56 hours per week. The statutory maximum working hours is 60 hours per week (including overtime).

Overtime pay

The average working hour is 56 hours per week. The statutory maximum working hours is 60 hours per week (including overtime).

Public Holidays

Number of public holidays is 22 days. The list of holidays can be found here.

Annual Paid Leave

All workers except tea plantation workers are entitled to 10 days of paid casual leave in each calendar year

An adult worker is entitled to: for shop, commercial or industrial establishment, factory, or road transport service industry workers - one day’s paid annual leave per 18 days of work

Sick Leave

Every worker except a newspaper worker is entitled to sick leave with full wages for 14 days in a calendar year

Parental Leave

Leave Type Duration
Maternal Leave 4 months
Prenatal Leave 8 weeks
Postnatal Leave 8 weeks

Paternity Leave is not compulsory.

Offboarding & Termination

Termination Process

Every worker except a newspaper worker is entitled to sick leave with full wages for 14 days in a calendar year

Notice Period

Terminated by Employer:

Reason Criteria Notice Period
Redundancy Worked for at least 1 year in the company 30 days
Without reason Permanent worker 120 days
Without reason Other worker 60 days

Terminated by Employee:

Type of Employee Notice Period
Permanent Employee 60 days
Temporary Employee 30 days
Monthly Rated Employee (Paid everyday of the month) 14 days

Severance Pay

Terminated by Employer:

Reason Severance Pay
Redundancy 30 days of wage x No. of years worked
Without reason (30 days of wage x No. of years worked) or gratuity, whichever is higher

Employees can resign without notice but they would have to pay an amount equal to the wages for the notice period.

Probation Period

Nature of Job Probation Period
Clerical Function 6 months
Others 3 months
Skilled Can add an additional 3 months (if unable to to determine quality of work within 3 months)

Insurance

It is not mandatory for employers to provide insurance for employees in Bangladesh. The insurance benefits that can be provided to the employees should be discussed and must be provided in writing through an employment contract.

However, government employees are entitled to mandatory insurance where it would cover health, life, and accident-related disability risks. Further details about the insurance provided to government employees can be found here.

VAT

The standard VAT rate is 15%.

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