Employer of Record in Bangladesh: hire without a local entity

Benefits in Bangladesh combine statutory baselines with market practice. The package should match the talent segment you are hiring (junior, senior or niche technical) and the norms of your sector.

Minimum wage

Set by sector through Minimum Wage Board gazettes, not as one national figure. We check pay against the applicable order.

Pay structure

Basic salary plus house rent, medical and conveyance allowances, which affects overtime, leave and end-of-service calculations.

Festival bonuses

Workers with one year of continuous service receive two a year, each up to one month’s basic wage.

Common extras

Medical insurance, transport or meal allowances, provident fund and gratuity. Remote teams often add equipment, internet and phone allowances.

Estimate the cost of your Bangladesh hire →

Under an EOR model, payroll is not just paying salaries. It is making sure employer obligations are handled correctly every month.

• Payroll runs monthly in Bangladeshi Taka (BDT). Wages must be paid within seven working days after the end of the wage period.
• Income tax is withheld monthly at the employee’s estimated average rate under section 86 of the Income Tax Act 2023.
• Withheld tax is generally deposited within two weeks of month-end, and withholding returns are filed quarterly.
• You receive a gross-to-net payroll summary, employee pay documentation and employer-side reporting support.

Foreign nationals need both an entry visa and a work permit before they can lawfully work in Bangladesh.

• Foreign employees usually enter on an E (employment) visa supported by the employer’s documentation.
• Permits are issued by BIDA, BEPZA, BEZA or another authority depending on where and how the employer operates.
• Authorities limit the share of foreign staff, so the local workforce plan should be reviewed early.

If your hire needs visa or work-permit support, see Global Deployment in Bangladesh.

Employment terms are governed by the Bangladesh Labour Act 2006, as amended by the 2025 Ordinance and the 2026 Amendment Act, and the Bangladesh Labour Rules 2015.

• The 2025 amendment removed the exclusion for managerial and administrative roles from the definition of “worker”, so many office staff are now covered by Labour Act protections.
• Standard hours are 8 per day and 48 per week. Overtime is generally paid at twice the ordinary rate of basic wage plus dearness allowance.
• Annual leave accrues at one day per 18 days worked, alongside 10 days of casual leave, 14 days of sick leave and 13 paid festival holidays.
• Eligible employees receive 120 days of paid maternity leave: 60 days before and 60 days after delivery.
• Employees in an Export Processing Zone or special economic zone may fall under a different legal framework. Flag this early.

Plan offboarding carefully: notice periods and termination compensation can be material, especially for permanent employment.

Employer, permanent (monthly-rated)

120 days’ notice without cause, or pay in lieu, plus compensation based on years of service.

Employer, other permanent workers

60 days’ notice, with compensation rules that may apply.

Employer, temporary workers

30 days if monthly-rated and 14 days for others, depending on the grounds.

Employee resignation

Permanent employees give 60 days’ notice and temporary employees 30 days, or wages in lieu.

Final settlement covers salary to the last working day, notice pay if applicable, termination or long-service benefits and unused earned leave.