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Bangladesh EOR & PEO

SALARY PAYMENT IN Bangladeshi Taka (BDT)

CONTRACT LANGUAGES Bengali / English

PAYROLL TAX 10% – 20%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

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Hire in Bangladesh

Horizon’s Bangladesh EOR 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 EOR, we manage the following expansion and employment procedures on your behalf.

Note, a Bangladesh Employer of Record is also known as a Bangladesh Professional Employer Organization (PEO).

Facts & Stats

EOR Platform

Hire in Bangladesh, and pay employees through our platform or app.

EOR Cost

Our Bangladesh EOR 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 EOR

stay compliant with Bangladesh labor laws

Employment Laws

Employment contracts in Bangladesh

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.

Fixed-term - Labour Act does not regulate the use of fixed-term contracts
Probationary periodN/A
Termination notice periodN/A
SeveranceN/A

 

Indefinite
Probationary period3 months, unless otherwise stated in writing
Termination notice period120 days (standard)
Severance30 days’ salary per year of service

Work week in Bangladesh

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.

Hire compliantly in Bangladesh without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Overtime in Bangladesh

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.

Holidays in Bangladesh

Bangladesh has a range of national public holidays that are celebrated annually. In 2024 these holidays are:
Date Holiday name
21 Feb Wednesday Language Martyrs’ Day
23 Feb Friday Maghi Purnima
26 Feb Monday Shab e-Barat (Tentative Date)
17 Mar Sunday Sheikh Mujibur Rahman’s birthday
25 Mar Monday Doljatra
26 Mar Tuesday Independence Day
6 Apr Saturday Arrival Day of Sri Sri Harichand Tagore
7 Apr Sunday Shab-e-qadr (Tentative Date)
13 Apr Saturday Chaitra Sankranti
14 Apr Sunday Bengali New Year
10 Apr Wednesday Eid ul-Fitr (Tentative Date)
12 Apr to 13 Apr Eid ul-Fitr Holiday (Tentative Date)
1 May Wednesday May Day
23 May Thursday Buddha Purnima, Vesak
17 Jun Monday Eid al-Adha (Tentative Date)
18 Jun to 19 Jun Eid al-Adha Holiday (Tentative Date)
8 Jul Monday Muharram (Tentative Date)
17 Jul Wednesday Ashura (Tentative Date)
20 Jul Saturday Ashari Purnima
15 Aug Thursday National Mourning Day
4 Sep Wednesday Akhari Chahar Somba (Tentative Date)
16 Sep Monday Eid e-Milad-un Nabi (Tentative Date)
16 Sep Monday Madhu Purnima
2 Oct Wednesday Mahalaya
11 Oct Friday Ashtami
12 Oct Saturday Mahanabami
15 Oct Tuesday Fateha-i-Yajdaham (Tentative Date)
16 Oct Wednesday Lakshmi Puja, Prabarana Purnima
31 Oct Thursday Sri Shayama Puja
16 Dec Monday Victory Day
25 Dec Wednesday Christmas Day

Annual leave in Bangladesh

Employees who have worked for an employer for at least one year are entitled to paid annual leave as follows:

  • One day of leave for every 18 work days in industrial establishments, commercial establishments, factories, shops or road transport establishment
  • One day of leave for every 22 days of work at a tea plantation
  • One day of leave for every 11 days of work for newspaper workers

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:

  • Up to 40 days for factory or road transport workers
  • Up to 60 days for shop, industrial, commercial or tea plantation workers

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.

Casual leave in Bangladesh

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

Sick leave

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.

Maternity leave

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.

Annual bonuses

Employees who have worked for the employer for a minimum of one year are entitled to two festival bonuses every year.

Healthcare benefits

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.

Other benefits

Large companies may also provide additional benefits to employees, such as:

  • Car facilities
  • Subsidized meals
  • Fringe benefits

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.

Social security in Bangladesh

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.

Pension

The Bangladesh government does not sponsor any pension scheme.

Payroll taxes in Bangladesh

Payroll taxes are progressive from 10% to 30%, depending on the employee’s income. 

Probationary periods in Bangladesh

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.

Termination and notice procedures in Bangladesh

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.

hassle-free Bangladesh compensation & benefits

Compensation & Benefits

Salary and Workers compensation

Minimum wage in Bangladesh is BDT 8,000 per month. 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)
Switzerland (Geneva) $4,000
Italy $2,255
Australia $1996
Algeria $156
Uzbekistan $22
Benefits of using a Bangladesh EOR

When you want to hire employees in Bangladesh, setting up a branch office or establishing a subsidiary is not always the best option. This step can often take weeks or even months, and be an expensive options. Using an EOR is faster and usually more efficient. Additionally, using a Bangladesh EOR allows you to minimize your risk in case you want to test the market before investing in a separate entity in Bangladesh.

Our EOR and payroll option in Bangladesh lets you skip the hassle of setting up a separate entity and trying to make sense of the complex labor laws here.

There are many benefits to using a Bangladesh EOR, including:

  • Speed – Using a EOR allows you to deploy staff faster, often within a matter of days.
  • Compliance – Our local experts have a deep understanding of local labor rules and regulations. We will ensure you comply with all local labor, tax and payroll requirements. The burden of compliance is on us, not you.
  • Reduce risk – By using a Bangladesh EOR, you transfer risk to a trusted third party like Horizons. You also reduce the risk associated with making a large investment in Bangladesh.
  • Access to better benefits – Since we leverage all of our local employees, we can offer more competitive benefits to your employees to make you a more attractive option for employment.
  • Simplicity – Using our Bangladesh EOR services allows you to maintain control over your business without taking on liabilities associated with setting up a separate legal entity.
  • Seamless transition – If you do later decide to establish a legal entity in Bangladesh, we can help your employees seamlessly transition.
  • Focus on your business – Because you delegate administrative tasks to a trusted legal partner, you can focus on your business’ core activities.

Hire in Bangladesh in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

Generally speaking, the terms “Bangladesh PEO” and “Bangladesh EOR” are used interchangeably.

An EOR 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 EOR 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.

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