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Facts & Stats

The People’s Republic of Bangladesh (Bengali: গণপ্রজাতন্ত্রী বাংলাদেশ) is a parliamentary constitutional republic, that’s neighbored by India and Myanmar and is boasts the honor of being the eight-most populous country in the world.

Home to the Bengal tiger, the world’s longest stretching beach, an outsized textile industry, and the most expansive mangrove forest in the world, Bangladesh combines Asian charm with rich culture and profuse biodiversity.

While Bangladesh still has work to do reducing inequality and eliminating extreme poverty, globalization has been opening up the nation’s economy, creating a new breed of experts your business can depend on as you expand across the globe.

  • Capital city

    Dhaka

  • Currency

    Bangladeshi taka
    (, BDT)

  • Languages spoken

    Bengali

  • Population size

    161,376,708 (est. 2018)

  • Ease of doing business

    Below average

  • Cost of living index

    33.31 (2021)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    15%

  • GDP - real growth rate

    8.2% (2019)

Grow your team in Bangladesh with Remote

Looking to employ workers in Bangladesh? Companies hiring in Bangladesh must either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country. Remote can employ team members in Bangladesh and keep you compliant at all times.

Remote can hire, onboard, and pay your Bangladesh team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Bangladesh. Sign up now to get started or talk to an expert for more details.

Risks of misclassification

If you're worried about whether to hire contractors or employees in Bangladesh or anywhere else around the world, Remote can help. Our Solutions Consulting team are experts in preventing misclassification risks. Download our Contractor Compliance Checklist for a solid overview, then talk to our team about your specific situation.

Employing in Bangladesh

Minimum Wage

The minimum wage in Bangladesh is fixed at 1,500 taka per month ($17.63) for employees who’re not covered by industry-specific wages; workers in the garment industry (one of Bangladesh’s largest employment sectors) earn a minimum of 8,000 takas ($94) per month.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Competitive benefits package in Bangladesh

At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and your company has the localized expertise needed to attract and keep the best global talent.

Our benefits packages in Bangladesh are tailored to fulfill the local needs of employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

Calculate the cost to hire an employee
in Bangladesh

Taxes in Bangladesh

Learn how employment taxes affect your payroll and your employees’ paychecks in Bangladesh.

  • Employer

    • 5% - Workers Profit Participation Fund (employers only subject depending on eligibility)

  • Employee

    • There are no mandatory social payroll taxes imposed in Bangladesh.

  • Income Tax Rates

    • BDT 300,000 - 600,000: 10%

    • BDT 600,000 to 1,000,000: 15%

    • BDT 1,000,000 to 1,300,000: 20%

    • BDT 1,300,000+: 25%

Types of leave

Paid time off

After spending an entire year working for an employer, employees are entitled to one day’s vacation for every 18 days worked, apart from certain exceptions:

  • 1 day every 22 days worked, in the case of tea plantation workers, and
  • 1 day every 11 days worked, in the case of newspaper workers.

This equates to between 11 – 22 days off annually.

Public holidays

There are 15 public holidays in Bangladesh.

Sick leave

Employees are generally entitled to annual paid sick leave of 14 days. The employee must present a medical certificate to receive sick leave. Sick leave may not be carried forward from year to year.

Maternity leave

Female employees who have worked for at least six months are entitled to eight weeks of paid maternity leave before the birth and eight weeks of paid leave after the birth. Women who have worked less than six months or who already have two other surviving children are generally eligible for unpaid leave. Women are forbidden to work for 8 weeks after the birth of the child under the national employment legislation.

Paternity/Parental leave

There is no provision for mandatory paternity leave under Bangladeshi law.

Casual leave

Workers are generally entitled to 10 days of paid casual leave each calendar year. This leave cannot be carried forward.

Employment termination

Termination process

Employee contracts can either be terminated at will or with just cause established, such as dishonesty, negligence, fraud, or any other work-related offenses.

Notice period

Employers are only required to provide prior notice to employees who’re being let go without any justification. This mandatory period ranges from 60 days for general workers to 120 days for employees who’re compensated monthly.

In case of termination by the employer: 30 days notice is required for monthly rated workers and 14 days in the case of other workers (payment in lieu is also an alternative).

In case of termination by the employee: A temporary worker may resign from service by giving the employer in writing with 30 days notice in the case of a monthly rated worker or 14 days for other workers (payment in lieu is also an alternative).

Severance pay

Gratuity is a discretionary monetary benefit scheme offered by an employer upon completion of service of an employee. For every type of separation, the employee becomes entitled to an amount as either 'compensation' or 'gratuity' (if any), whichever is higher as stated in the relevant provisions under the Bangladesh Labour Act, 2006 (hereinafter referred to as BLA).

In case, if an organisation does not have any gratuity scheme, then the employer is liable to pay compensation, as per the BLA at the time of separation. Gratuity or compensation payment shall be in addition to any payment of wage/salary in lieu of notice due to separation of service of an employee on different grounds.

An employee will be entitled to gratuity only when he has been in uninterrupted service for more than 1 year with the organization. Completion of more than 6 months of service will be deemed as 1 year from the second year.

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