Bangladesh backdrop
Back

Payroll and Benefits Guide Bangladesh

Last updated: Aug 29, 2023

Currency
Bangladeshi taka (৳) (BDT)
Employer Taxes
Unknown
Payroll Frequency
Bi-Weekly/Weekly/Monthly
Employee Costs
0%
Capital
Dhaka
Date Format
dd/mm/yyyy
Fiscal Year
1 July - 30 June
video poster

Contribution

Employer Employer Payroll Contributions
There are no mandatory social insurance contributions for the employer
Employee Employee Payroll Contributions
There are no mandatory social insurance contributions for the employee
Employee Income Tax*
0% Up to Tk. 350,000
5% 350,001 – 450,000 Tk
10% 450,001 – 750,000 Tk
15% 750,001 – 1,150,000 Tk
20% 1,150,001 – 1,650,000 Tk
25% 1,650,000 Tk and above
Taxpayers’ category Tax free limit
For female taxpayers 400,000
Senior male taxpayers aging 65 years and above 400,000
Individuals with disability 475,000
For gazetted war-wounded freedom fighters 500,000

*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

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

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.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

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 & 14th Salaries

Employees who have completed at least one year of service are entitled to two festival bonuses each year. Each bonus should not be more than the basic salary.

Working Hours

General

The standard workweek in Bangladesh is Sunday to Thursday, 9 hours per day, and a weekly maximum of 48 hours.

Overtime

Additional hours can be worked providing this has been made clear in the employment contract. For certain worker types, overtime is limited to 2 hours per day and paid at a rate of 200% salary.

Leave

Annual Leave (vacation)

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

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.

Date  Day Holiday Notes
21 Feb 2024 Wednesday Shahid Day and International Mother
Language Day
26 Feb 2024 Monday  Shab-e-Barat Tentative
17 Mar 2024 Sunday Birthday of the Father of the Nation
Bangabandhu Sheikh Mujibur Rahman
and National Children’s Day
26 Mar 2024 Tuesday Independence and National Day
5 Apr 2024 Friday Jumat-ul-Wida
7 Apr 2024 Sunday Shab-e-Qadr
10 Apr 2024 Wednesday Eid-ul-Fitr Tentative
11 Apr 2024 Thursday Eid-ul-Fitr Tentative
12 Apr 2024 Friday Eid-ul-Fitr Tentative
14 Apr 2024 Sunday Bengali New Year’s Day
1 May 2024 Wednesday Labour Day
22 May 2024 Wednesday Buddha Purnima (Boishakhi Purnima)
16 Jun 2024 Sunday Eid-ul-Azha Tentative
17 Jun 2024 Monday Eid-ul-Azha Tentative
18 Jun 2024 Tuesday Eid-ul-Azha Tentative
17 Jul 2024 Wednesday Ashura
15 Aug 2024 Thursday National Mourning Day
26 Aug 2024 Monday Janmashtami
16 Sep 2024 Monday Eid-e-Milad-un-Nabi (S) Tentative
13 Oct 2024 Sunday Durgapuja (Bijoya Dashami)
16 Dec 2024 Monday Victory Day
25 Dec 2024 Wednesday Christmas Day

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.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

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 120 days or payment in lieu of notice can be given. Employees who resign must give 60 days notice.

No notice is required to be given during the probationary period.

Severance Pay

Employees who are terminated or resign having completed at least one year with an employer are entitled to severance pay (gratuity) of 30 days’ salary for each completed year of service.

Probation Period

Probation periods is a minimum of 3 months and a maximum of 6 months.

VISA

VISA

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.

VAT

General

The standard rate of VAT in Bangladesh is 15%.

Stay up to date on payroll & employment law changes

Version History

September 29, 2022
Paid time off has been updated.
More

Questions & Answers

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Download this guide to read later

Payroll and Benefits Guide in Bangladesh

Download Free Guide

See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws

The information provided in the Papaya Global Web site is provided for informational purposes only. The materials are general in nature; they are not offered as advice on a particular matter and should not be relied on as such. Use of this Web site does not constitute a legal contract or consulting relationship between Papaya Global and any person or entity. Although every reasonable effort is made to present current and accurate information, Papaya Global makes no guarantees of any kind. Papaya Global reserves the right to change the content of this site at any time without prior notice. Papaya Global is not responsible for any third party material that can be accessed through this Web site. The materials contained on this Web site are the copyrighted property of Papaya Global unless a separate copyright notice is placed on the material. Papaya Global grants each user a non-exclusive, non-transferable license to access and download, display and print one copy of the content of this Web site on a single computer solely for internal, business use, provided that the user does not modify the site content in any way and that all copyright and other notices displayed on the site content are retained. Other reproduction, distribution, republication and re-transmission of materials contained within this Web site require Papaya Global’s prior permission.
Download this guide to read later

Payroll and Benefits Guide
in Bangladesh

What’s covered in this guide:

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

And more...

Download free guide
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
Download:
CSV
PDF
ICS
Date  Day Holiday Notes
21 Feb 2024 Wednesday Shahid Day and International Mother
Language Day
26 Feb 2024 Monday  Shab-e-Barat Tentative
17 Mar 2024 Sunday Birthday of the Father of the Nation
Bangabandhu Sheikh Mujibur Rahman
and National Children’s Day
26 Mar 2024 Tuesday Independence and National Day
5 Apr 2024 Friday Jumat-ul-Wida
7 Apr 2024 Sunday Shab-e-Qadr
10 Apr 2024 Wednesday Eid-ul-Fitr Tentative
11 Apr 2024 Thursday Eid-ul-Fitr Tentative
12 Apr 2024 Friday Eid-ul-Fitr Tentative
14 Apr 2024 Sunday Bengali New Year’s Day
1 May 2024 Wednesday Labour Day
22 May 2024 Wednesday Buddha Purnima (Boishakhi Purnima)
16 Jun 2024 Sunday Eid-ul-Azha Tentative
17 Jun 2024 Monday Eid-ul-Azha Tentative
18 Jun 2024 Tuesday Eid-ul-Azha Tentative
17 Jul 2024 Wednesday Ashura
15 Aug 2024 Thursday National Mourning Day
26 Aug 2024 Monday Janmashtami
16 Sep 2024 Monday Eid-e-Milad-un-Nabi (S) Tentative
13 Oct 2024 Sunday Durgapuja (Bijoya Dashami)
16 Dec 2024 Monday Victory Day
25 Dec 2024 Wednesday Christmas Day