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Talent Wiki – Bangladesh

Your quick guide on talent and labor compliance norms in Bangladesh

Capital

Dhaka

Currency

Bangladeshi taka

Languages

Bengali

Payroll Frequency

Monthly

GDP per Capita

$ 2,728.46

Employer Tax

No Contribution

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

Local Universities

The top local universities in Bangladesh are as follows:

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

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

Talent Sourcing Tips

Top Local Job Boards

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

Number of LinkedIn users

7,046,000

Top Recruitment Agencies

Amco Enterprise LimitedJob Placement BD Ltd.Catharsis International

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 ranges between three to six months.

Public and Provincial holidays 2024

Date Occasion
21 February Shaheed Dibash and International Mother Language Day
26 February Shab-e-Barat
17 March Birthday of Father of the Nation Bangabandhu Sheikh Mujibur Rahman
26 March Independence and National Day
5 April Jumatul Bidah
7 April Shab-e-Qadr
10-12 April Eid-ul-Fitr
14 April Bengali New Year’s Day
1 May May Day
22 May Buddha Purnima
16-18 June Eid-ul-Azha
1 July Bank Holiday
17 July The Holy Ashura
15 August National Mourning Day
26 August Janmashtami
16 September Eid-e-Miladunnabi
13 October Durga Puja
16 December Victory Day
25 December Christmas Day
31 December Bank 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

Payroll

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 1,500 BDT per month.

Overtime Pay

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

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

Taxes

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%.

Taxable Income (BDT) Tax Rate(%)
Up to 300,000 0
300,001 – 400,000 5%
400,001 – 700,000 10%
700,001 – 1,100,000 15%
1,100,001 – 1,600,000 20%
Above 1,600,000 25%

VAT:

The standard rate of VAT followed is 15%.

Offboarding & Termination

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.

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.

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).

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration