Hire in Bangladesh

Bangladesh PEO &

Employer of Record

Hire & manage teams remotely in Bangladesh without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language


Salary Currency

Bangladeshi Taka (BDT)

Capital city


Time zone

UTC +6

EOR in Bangladesh

from $220/ month

Hire Employees in Bangladesh

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services in Bangladesh to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.


Access your payroll reports on our portal.

Employer of Record in Bangladesh

Employer of Record (EOR) services are for companies who do not have a legal entity in Bangladesh, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Bangladesh.

2. Employee Onboarding

We sign a local labor contract with your employees based in Bangladesh.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Bangladesh.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll & PEO in Bangladesh

Professional Employment Organization (PEO) services are for companies who have a legal entity in Bangladesh, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

Employee Income Taxes:

Individual income tax rates in Bangladesh are based on progressive tax brackets.

Individual income tax is an important source of revenue for the government of Bangladesh, with rates varying based on the income level of the individual. As of 2021, individuals earning up to 250,000 Bangladeshi taka (BDT) per year are not required to pay any income tax. For those earning between 250,000 and 400,000 BDT, the tax rate is 10%. The rate increases to 15% for incomes between 400,000 and 600,000 BDT, 20% for incomes between 600,000 and 1,200,000 BDT, and 25% for incomes over 1,200,000 BDT.

Additionally, there is a surcharge of 15% for individuals with an income exceeding 5,000,000 BDT. It is important to note that there are various exemptions and deductions available to taxpayers, which can help reduce their tax liability. Overall, the individual income tax rates in Bangladesh are progressive in nature, with higher earners paying a larger percentage of their income in taxes.

Tax Brackets:

Sample Calculation


Employer costs in Bangladesh typically include various expenses related to employing workers, such as wages, benefits, and taxes. The country has a relatively low minimum wage compared to many other countries, with the current rate set at 8,000 taka (approximately $95 USD) per month for entry-level workers. However, employers are also required to provide various benefits to their workers, including paid holidays, sick leave, and maternity leave.

Employers are responsible for contributing to various social security programs, such as the Employees’ Provident Fund and the Workers’ Welfare Fund. Overall, employer costs in Bangladesh can vary depending on the industry and type of work, but they generally involve a combination of wages, benefits, and social security contributions.

Employer Contribution

5% – Social Security

In Bangladesh, Mandatory Contributions refer to various types of contributions that employers are required by law to make on behalf of their employees. The most common types of Mandatory Contributions in Bangladesh include contributions to the country’s Social Security Scheme, which provides financial support to workers and their families in the event of sickness, disability, injury, or death.

Other types of Mandatory Contributions include contributions to the country’s National Pension Scheme and to the Workers’ Welfare Fund. These contributions are usually deducted from employees’ salaries and are matched by their employers. While Mandatory Contributions can be a significant burden on employers, they play an important role in ensuring that workers are protected and have access to necessary support in times of need.

In Bangladesh, the standard working hours are typically 8 hours per day and 48 hours per week. However, the labor law allows for up to 60 hours of work per week, including overtime. Overtime work is defined as any work that exceeds the normal working hours, and it is compensated at a rate of 1.25 times the regular hourly rate. However, employers are required to obtain prior permission from the Department of Labor before requiring employees to work overtime, except in cases of emergencies or unexpected circumstances.

Female workers are not permitted to work between the hours of 10 PM and 6 AM without special permission from the government. Despite these regulations, there have been reports of labor abuses, including excessive working hours and unpaid overtime, particularly in the garment industry.

In Bangladesh, the laws governing the termination of employment are mainly regulated by the Bangladesh Labor Act of 2006. According to the act, an employer can terminate an employee’s employment for valid reasons such as misconduct, poor performance, or redundancy, but the employer must follow the proper procedures for termination, including providing written notice and an opportunity to respond. If an employer terminates an employee without following the proper procedures, the employee may be entitled to compensation for unfair dismissal.

Employees may be fired if they are unable to work due to physical or mental illness, as determined by a medical practitioner. The employee is entitled to 30 days of pay for each year of service if he or she has worked for at least one year.


Employers are required by law to provide severance pay to employees who are terminated due to redundancy. The amount of severance pay is based on the employee’s length of service and the reason for termination, and it must be paid within 30 days of the termination. The laws governing termination and severance pay in Bangladesh aim to protect the rights of employees and ensure that they are treated fairly by their employers.

Severance pay is always required in Bangladesh unless the employee is terminated for a criminal offence.

Notice Period

In Bangladesh, employers must offer written notice of 120 days for monthly rated workers and 60 days for other workers, or comparable pay in lieu, when terminating employment for any reason. In addition, for every year worked, the employee is entitled to 30 days of salary.

Employment Contract

In Bangladesh, an employment contract is a legally binding agreement between an employer and an employee that outlines the terms and conditions of the employment relationship. The contract typically includes details such as the job title, job duties and responsibilities, work schedule, compensation, benefits, and termination conditions. In addition, it may also include provisions for confidentiality, non-disclosure, and intellectual property rights.

Employment contracts in Bangladesh are governed by the Labour Act, 2006, which sets out the minimum requirements for employment contracts, including minimum wage, working hours, and leave entitlements. The contract is usually signed by both parties and becomes effective on the first day of work. While not all employers may provide a written employment contract, it is generally recommended to have one to avoid any misunderstandings or disputes that may arise in the future.

Employment contracts should be written and include the names of the parties, dates, job title, job description, salary, working hours, bonuses, annual leave, sick leave, casual leave, and any termination clauses.

In Bangladesh, there are several types of leaves available for employees to take depending on their circumstances. The most common types of leaves are annual leave, sick leave, and casual leave. In addition, there are also maternity leave and paternity leave, which are provided to female and male employees respectively when they become parents. Employers are required to provide these leaves by law, and the duration of the leave is also specified in the employment contract. Finally, there is also public holiday leave, which is granted for national and religious holidays, and is generally separate from the other types of leave.

Annual Leave

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

Sick Leave

Sick leave is intended for employees who are ill or require medical treatment, and the number of days allowed for this leave is typically specified in the employment contract. Sick leave in Bangladesh includes 14 days’ full pay each calendar year.

Maternity and Paternity Leave

Female employees are entitled to 16 weeks of maternity leave paid at 100%. Fathers are entitled to 10 days’ leave in the first year paid at 100%.

Casual Leave

Casual leave is a type of leave that employees can take for personal or urgent reasons, such as attending to a family emergency.

In Bangladesh, public holidays are observed to celebrate religious and national events. The government of Bangladesh recognizes 19 public holidays, which are observed across the country. Among these holidays, the most important religious holidays are Eid al-Fitr and Eid al-Adha, which mark the end of Ramadan and the Hajj pilgrimage, respectively. Other religious holidays include Durga Puja, Buddha Purnima, and Christmas Day.

The national holidays include Independence Day, Victory Day, and International Mother Language Day. On public holidays, most businesses, government offices, and schools are closed, and many people spend the day with their families or attending religious services. The dates of some public holidays are based on the lunar calendar and may vary from year to year. Overall, public holidays are an important part of the cultural and social fabric of Bangladesh and are celebrated with great enthusiasm and joy.

Public Holidays

  • Language Martyrs’ Day – February 21
  • Sheikh Mujibur Rahman’s Birthday – March 17
  • Independence Day – March 26
  • Bengali New Year – April 14
  • Shab-e-Qadr and Jumatul Bidah – April 29
  • Labour Day – May 1
  • Eid al-Fitr – May 3-4-5
  • Buddha Purnima – May 16
  • Eid-ul-Azha – July 10-11-12
  • Ashura – August 8
  • Eid al-Adha
  • National Mourning Day – August 15
  • Janmashtami – August 19
  • Durga Puja – October 4
  • Eid-e-Miladunnabi – October 9
  • Victory Day – December 16
  • Christmas Day – December 25
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