Bangladesh backdrop

Payroll and Benefits Guide Bangladesh

Last updated: Aug 29, 2023

Bangladeshi Taka (BDT)
Employer Taxes
Payroll Frequency
Weekly, bi-weekly, or monthly
Employee Costs
Date Format
Fiscal Year
1 July - 30 June



Employer Payroll Contributions

There are no mandatory social insurance contributions for the employer.


Employee Payroll Contributions

There are no mandatory social insurance contributions for the employee.


Employee Income Tax*


Up to Tk. 350,000


350,001 – 450,000 Tk


450,001 – 750,000 Tk


750,001 – 1,150,000 Tk


1,150,001 – 1,650,000 Tk


1,650,000 Tk and above

Taxpayers’ category

Tax free limit

For female taxpayers


Senior male taxpayers aging 65 years and above


Individuals with disability


For gazetted war-wounded freedom fighters


*A new exemption has been introduced where the lower of Tk. 450,000 or 1/3 of total taxable income is exempt from Income Tax.

Employer taxes


Employee taxes


Minimum Wage


In Bangladesh, the National Minimum Wage Board determines the minimum wage for each sector every five years. The current minimum wage is BDT 8,000 per month but may vary depending on the sector.




Payroll Cycle

In Bangladesh, the payroll cycle can be daily, weekly, bi-weekly and monthly. Employees salary must be paid by the end of the seventh day after the final day on which the payment is due, according to Bangladesh’s Employee Rights and Labor Law. The same rules are applied for those employees whose employment has been ended by the employer.

13th Salary

There is no statutory requirement to provide a 13th salary.

Working Hours


The standard workweek in Bangladesh is Sunday to Thursday, 8 hours a day, 40 hours per week. The maximum weekly hours is 48 hours.


Additional hours can be worked providing this has been made clear in the employment contract. Certain worker types, e.g. blue-collar workers, are limited to 2 hours overtime per day paid at a rate of 200% salary.



Paid Time Off

Employees are entitled to 1 day annual leave for every 18 days of work per calendar year (certain industries calculate leave entitlement differently).

Vacation Days
Public Holidays

Public Holidays

Although Bangladesh has 21 days of national holidays each year, employees are only entitled to take 11 of them off as paid holidays, and it is the employer’s choice as to which ones.

Public holidays that fall on a weekend are lost.
Certain religious holidays are determined by the lunar cycle and will be confirmed nearer the date of the holiday.

Sick Days

Employees are generally entitled to 14 days of paid sick leave per year, paid by the employer, however, this is an annual entitlement and cannot be carried over from year to year. All employees must present a medical certificate for all absences to receive sick leave and pay.

Casual Leave

Employees are entitled to 10 days paid leave per year for urgent matters such as sudden illness, minor accidents and urgent personal issues. This leave does not accumulate nor carry forward into the following year if unused.

Maternity Leave

Female employees who have worked for at least six months are entitled to 8 weeks of paid maternity leave before the birth and 8 weeks of paid leave after the birth paid by the employer. Women who have worked less than six months or who already have two other surviving children are generally eligible for unpaid leave.
Women are also forbidden to work for eight weeks after the birth of a child.
Women who suffer a miscarriage before the commencement of maternity leave are entitled to 4 weeks paid leave with no deductions from wages during this period.



Paternity Leave

There is no provision for paternity leave in Bangladesh. However, some companies do choose to create a paid paternity leave policy.

Parental Leave

There is no provision for parental leave.

Other Leave

There is no provision for other leave in Bangladesh.


Termination Process

Employees with at least one year of service are generally entitled to one month’s notice or pay in lieu of notice and 30 days salary for every year of service.

Notice Period

The notice period is up to 120 days, alternatively, payment in lieu of notice can be given though this depends on the type of employment.

Severance Pay

Employees who have completed at least one year with an employer are entitled to severance pay of 30 days’ wages for each year worked.

Probation Period

Probation periods are generally six months for clerical employees and three months for other employees.



All foreigners entering Bangladesh require a visa. There are many types of visas for prospective foreign nationals, including business, investor, employment, and NGO working visas. The duration of stay will be worked out by the embassy at which one is applying following a review of required documentation, generally, a valid passport, two passport-size photographs, an application form, and the visa fee.

If expats are going to work in Bangladesh, a work permit is also required. Government bodies tasked with issuing these permits include the Bangladesh Investment Development Authority, the Bangladesh Export Processing Zone Authority, and the NGO Affairs Bureau. The prospective employer will confirm which body to contact.



The standard rate of VAT in Bangladesh is 15%.

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Version History

September 29, 2022
Paid time off has been updated.

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Payroll and Benefits Guide
in Bangladesh

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Bangladesh 2023
Day Date Holiday Notes
Tuesday Feb-21 Shaheed Day
Wednesday Mar-8 Shab e-Barat
Friday Mar-17 Sheikh Mujibur Rahman’s Birthday
Sunday Mar-26 Independence Day
Friday Apr-14 Bengali New Year
Tuesday Apr-18 Laylat al-Qadr
Friday Apr-21 Jumatul Bidah
Saturday Apr-22 Eid el Fitr
Monday May-1 May Day
Friday May-5 Buddha Purnima
Tuesday Jun-27 Eid al Adha
Wednesday Jun-28 Eid al Adha
Thursday Jun-29 Eid al Adha
Friday Jun-30 Eid al Adha
Saturday Jul-1 Eid al Adha
Saturday Jul-29 Ashura Tentative
Tuesday Aug-15 National Mourning Day
Wednesday Sep-6 Shuba Janmashtami
Thursday Sep-28 Prophets Birthday Tentative
Tuesday Oct-24 Vijaya Dashami
Saturday Dec-16 Victory Day
Monday Dec-25 Christmas