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Horizon’s Bangladesh PEO services allow companies to hire employees in Bangladesh without first establishing a legal entity. We handle all HR, payroll, tax and benefits administration while the business maintains daily control over the staff’s work. This cost-effective option allows you to deploy staff faster while maintaining full legal compliance. Through our Bangladesh PEO, we manage the following expansion and employment procedures on your behalf.
|PEO Platform Hire in Bangladesh, and pay employees through our platform or app.||PEO Cost Our Bangladesh PEO solution is the most affordable on the market.||Time-to-hire Fast onboarding in Bangladesh, hire in as little as 24 hours.|
|Contracts We draft labor contracts compliant with Bangladesh labor law.||Local Benefits We administer all mandatory benefits and contributions in Bangladesh.||180+ Countries It doesn’t stop with Bangladesh — we are an international PEO|
Written employment contracts are standard in Bangladesh. The terms of the contract are legally-binding between the parties and must comply with the provisions of the Labour Act. If there is no written employment agreement, employers must issue a letter of appointment.
|Termination notice period||N/A|
|Probationary period||3 months, unless otherwise stated in writing|
|Termination notice period||120 days (standard)|
|Severance||30 days’ salary per year of service|
Labor laws restrict work hours to eight hours during a day and 48 hours per week. The usual days off are Friday and Saturday. Workers at industrial establishments, commercial establishments or shops must be given a resting period of 1.5 days each week.
Factory workers are entitled to one day of rest. Road transport service workers are entitled to a consecutive 24 hours per work week. Women cannot be required to work between 10 p.m. and 6 a.m. without their consent.
Quick, compliant hiring in 24 hours—no subsidiary required.
Adult workers in Bangladesh can work above 48 hours in a work week but not more than 60 hours in the week and not to exceed an average of 56 hours for the year. Overtime pay is twice the amount of the hourly base pay, in addition to a special allowance and interim or ad-hoc pay.
Bangladesh has a range of national public holidays that are celebrated annually. In 2023 these holidays are:
|5 Feb Sunday||Maghi Purnima|
|21 Feb Tuesday||Language Martyrs’ Day|
|7 Mar Tuesday||Doljatra|
|8 Mar Wednesday||Shab e-Barat (Tentative Date)|
|17 Mar Friday||Sheikh Mujibur Rahman’s birthday|
|19 Mar Sunday||Arrival Day of Sri Sri Harichand Tagore|
|26 Mar Sunday||Independence Day|
|13 Apr Thursday||Chaitra Sankranti|
|14 Apr Friday||Bengali New Year|
|19 Apr Wednesday||Shab-e-qadr (Tentative Date)|
|21 Apr Friday||Jumatul Bidah (Tentative Date), Eid ul-Fitr Holiday (Tentative Date)|
|22 Apr Saturday||Eid ul-Fitr (Tentative Date)|
|23 Apr to 24 Apr||Eid ul-Fitr Holiday (Tentative Date)|
|1 May Monday||May Day|
|4 May Thursday||Buddha Purnima, Vesak|
|28 Jun Wednesday||Eid al-Adha Holiday (Tentative Date)|
|29 Jun Thursday||Eid al-Adha (Tentative Date)|
|30 Jun Friday||Eid al-Adha Holiday (Tentative Date)|
|19 Jul Wednesday||Muharram (Tentative Date)|
|29 Jul Saturday||Ashura (Tentative Date)|
|1 Aug Tuesday||Ashari Purnima|
|15 Aug Tuesday||National Mourning Day|
|13 Sep Wednesday||Akhari Chahar Somba (Tentative Date)|
|27 Sep Wednesday||Eid e-Milad-un Nabi (Tentative Date)|
|28 Sep Thursday||Madhu Purnima|
|14 Oct Saturday||Mahalaya|
|22 Oct Sunday||Ashtami|
|23 Oct Monday||Mahanabami|
|27 Oct Friday||Fateha-i-Yajdaham (Tentative Date)|
|28 Oct Saturday||Lakshmi Puja, Prabarana Purnima|
|12 Nov Sunday||Sri Shayama Puja|
|16 Dec Saturday||Victory Day|
|25 Dec Monday||Christmas Day|
Employees who have worked for an employer for at least one year are entitled to paid annual leave as follows:
If an employee does not use all accrued overtime in a year, he or she can carry forward unused time, subject to the following limitations:
If the employee plans to take leave for a minimum of four days, he or she is generally entitled to be paid ahead of time for this leave.
Workers are usually entitled to 10 days of paid casual leave each calendar year. This leave cannot be carried forward to subsequent years.
Additionally, most workers other than newspaper workers are entitled to 14 days of sick leave. Sick leave cannot be carried to subsequent years. Employees must present a medical certificate to receive sick leave.
Newspaper workers are entitled to sick leave at half-pay for a minimum of 1/18th of their employment period.
Expectant mothers who have worked for the employer for at least six months are eligible for maternity leave of eight weeks before delivery and eight weeks after it. Expectant mothers who have worked less than six months for the employer or have two or more surviving children are only eligible for unpaid leave.
Women are not allowed to work for eight weeks after giving birth to a child.
There is no statutory paternity leave in Bangladesh.
Employees who have worked for the employer for a minimum of one year are entitled to two festival bonuses every year.
Large companies often provide employees with private health insurance. Group health insurance is based on the number of workers. In many industries, there may be a high required number of employees required before being able to procure group insurance.
Large companies may also provide additional benefits to employees, such as:
Most companies in Bangladesh provide provident benefits to their permanent employees, which are usually derived from employer and employee contributions. They also usually provide gratuity benefits to permanent employees.
Employees in Bangladesh are not required to contribute towards a social security fund. Companies that meet specific criteria must pay 5% of their profits into a Workers Profit Participation Fund, which provides monetary benefits to employees. Owners, partners or directors who have been employed with the company for a minimum of nine months are not eligible to receive these benefits.
Establishing a provident fund is not mandatory. Instead, it is based on the demand of a specific number of workers.
There is no Social Security tax in Bangladesh.
The Bangladesh government does not sponsor any pension scheme.
Payroll taxes are progressive from 10% to 30%, depending on the employee’s income.
Bangladesh allows probationary periods of six months for clerical workers and three months for other workers, which can be extended another three months if the employer could not determine the quality of work within the first three months.
Employees who have worked for the employer for at least one year are generally entitled to 30 days notice for termination. The employer can opt to pay wages for this period instead of giving the notice.
Employees who are convicted of a crime or who are found guilty of misconduct are not entitled to receive this formal notice.
Termination for other reasons than those listed above usually require written notice of 120 days for monthly-rated workers and 60 days for other workers. Again, this notice period can be made through compensation to the employee instead of providing notice.
Employers are required to provide compensation to employees who sustain a work-related injury. Compensation depends on the age of the worker. An adult worker can receive up to TK.1,25,000 for complete permanent injury while a young worker may receive up to Tk.10,000.
|Minimum Wage Country Comparison Chart||(Per month in USD)|
With Horizons, you get quick service, transparent pricing, and expert support.
A Bangladesh PEO and a Bangladesh EOR are two types of companies which specialize in providing human resources services to businesses in Bangladesh.
The main difference between a Bangladesh PEO and a Bangladesh EOR is in the scope of their services.
Bangladesh PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Bangladesh PEO is essentially outsourcing your HR duties in Bangladesh.
Bangladesh EORs actually take over as the legal employer of your employees based abroad. Bangladesh EORs become responsible for labor compliance for your employees in Bangladesh.
At Horizons, we offer both PEO and EOR services in Bangladesh. Get in touch now and let us know what service you are seeking.
A PEO in Bangladesh can feasibly hire both local and foreign nationals to work in Bangladesh.
However, the ability of Horizons to sponsor your foreign national employee in Bangladesh may be limited due to visa quotas practiced in many countries.
Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.
In most cases, Horizons’ Bangladesh PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Bangladesh.
It is possible to get a work visa in Bangladesh. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Bangladesh are limited, however—get started today to secure your employees’ visa spot.