Hiring in Bangladesh: Complete Guide 2027
Everything you need to know about hiring and managing employees in Bangladesh
Overview
Bangladesh has no social security contribution. What an employer owes sits in the Labour Act 2006 and the Labour Rules 2015 instead: two festival bonuses a year of one month's basic pay each, gratuity of 30 days' wages per year of service when the employment ends, and a provident fund where one is constituted. On a mid-level salary that comes to 10 to 20% above gross. An EOR adds USD 250 to 500 a month, a large share when the salary itself is BDT 100,000 to 200,000, so the all-in premium runs 30 to 55%. The Labour (Amendment) Act 2026, in force since 10 April 2026, is the text to read.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Bangladesh
Payroll is monthly; wages are due within seven working days of the month end (section 123 of the Labour Act). Registrations: RJSC, e-TIN and BIN at the NBR, city corporation trade licence, DIFE registration for the workplace. No social security deduction. Income tax is withheld each month: nothing up to BDT 375,000 a year (more for women and over-65s), then bands of 10, 15, 20, 25 and 30% under the Finance Ordinance 2025, one third of salary exempt up to BDT 500,000, a minimum tax in the city corporations. The thresholds move with every June budget. No national minimum wage: sector wage boards set floors, BDT 12,500 a month in the garment board's lowest grade since December 2023, nothing for office or tech roles. The EOR files the withholding with the NBR, accrues the two festival bonuses and the gratuity, and runs a provident fund where one exists at 7 to 8% matched. Ask that the quote shows those accruals as lines, not as "included".
Key Labor Laws &
Requirements
Employment Contracts
- Written appointment letter and ID card are mandatory
- Probation 6 months, 3 for clerical staff
- Retirement age 60
Leave & Time Off
- 1 day of annual leave per 18 days worked
- 10 days' casual and 14 days' sick leave at full pay
- Maternity 16 weeks at full pay after 6 months' service
Termination Rules
- 120 days' notice for monthly-rated permanent workers
- 30 days' wages per year of service, or gratuity if higher
- Misconduct: written charge, reply and inquiry
COMPLIANCE
Termination and Gratuity Compliance in Bangladesh
A permanent worker on monthly wages is owed 120 days' notice or pay in lieu, plus compensation of 30 days' wages per completed year of service, or gratuity where that is higher (30 days a year, 45 beyond ten years' service). Dismissal for misconduct needs a written charge, a reply and an inquiry; skip a step and the labour court reinstates. Probation runs six months, three for clerical staff. Hours: 8 a day and 48 a week, overtime at twice the basic rate, capped at 10 hours a day. Maternity leave is 16 weeks at full pay after six months' service. None of this applies inside the export processing zones, where BEPZA's own labour law governs. An EOR calculates the notice, the compensation and the gratuity, and keeps the inquiry file.
Key Challenges
- No social security: gratuity and two festival bonuses carry the cost
- Garment wage board floor of BDT 12,500 a month, no floor for office roles
- 120 days' notice for monthly-rated permanent workers
- Foreign hires need a BIDA work permit, one per 20 local staff in industry
- Export processing zones fall under BEPZA law, not the Labour Act
Country Highlights
Advantages
- 170 million people, median age about 27
- Dhaka salaries: a mid-level engineer earns around BDT 1 to 2 million a year
- English is used in business and in most appointment letters
- A software and ITES sector built in Dhaka's hi-tech parks
- Bonuses and leave are fixed by statute, so the pay package is predictable
Popular Industries & Roles
Technology
Avg. Salary: BDT 1M-BDT 3M
Dhaka's software and ITES firms staff the hi-tech parks and export to the US and Europe; senior engineers sit at the top of this band
Garments & Textiles
Avg. Salary: BDT 600k-BDT 2M
Ready-made garments are over 80% of exports; merchandising, compliance and factory management roles pay well above the BDT 12,500 board floor
Financial Services
Avg. Salary: BDT 800k-BDT 2M
Banks, mobile financial services such as bKash and the Dhaka Stock Exchange brokers hire finance, risk and product staff
Top 3 Providers in Bangladesh
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Vurke
- UAE / MENA EOR + global payroll
- 95+ countries claimed; WPS compliance
- DIFC DEWS; ISO 27001 claimed
- GPA recognition claimed; Pakistan/Bangladesh ops
Procloz
- Global South EOR — social impact focus
- APAC specialist with development depth
- Market range $250–$650 acknowledged
- Open pricing, scales with headcount
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Frequently asked questions
Hiring in Bangladesh through an EOR, in short.
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How much does an employer pay on top of salary in Bangladesh?
Employer contributions in Bangladesh come to 0% (no scheme); the largest mandatory line is Gratuity 30 days/yr. With the other statutory benefits and a typical EOR fee, budget ~30–55% on top of gross salary.
What does an EOR charge per employee in Bangladesh?
Published EOR fees in Bangladesh run $250–500/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Bangladesh pay in tax and contributions?
Income tax is 0–30% progressive and employee social contributions are 0% (PF 7–8% where set up), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Bangladesh?
5-10 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Bangladesh?
Vurke, Procloz and Deel hold the first three places in our ranking for hiring in Bangladesh. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Bangladesh.
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