Talent Wiki - Bangladesh

Your quick guide on talent and labor compliance norms in Bangladesh

Capital

Dhaka

Currency

Bangladeshi taka

Languages

Bengali

Payroll Frequency

Monthly

GDP per Capita

$1750

Employer Tax

0%

Supplementary Guide for Employment and Expansion in Bangladesh

Talent Wiki - Australia

Work permit

Learn more

Starting business

Learn more

Benefits & Compensation

Learn more

Payroll

Learn more

Subsidiaries

Learn more

Background checks

Learn more

Sole Proprietorship

Learn more

Employment Act

Learn more

How to hire

Learn more

Talent Overview

Bangladesh has one of the emerging and growth-leading economies in the world. Its economy ranks 29th in purchasing power parity and ranks second in South Asia, after India. Bangladesh’s major industries include textiles, pharmaceuticals, shipbuilding, steel, electronics, energy, construction materials, chemicals, ceramics, food processing, and leather goods. It is also one of the Next Eleven emerging markets.

Major economic hubs:

Dhaka, Chittagong, Rajshahi, Khulna

Skills in demand:

Data Analysis, Customer Service, IT Skills, Digital Marketing

Local Universities

The top universities in Bangladesh include:

Bangladesh-1

University of Dhaka

RANKING

Bangladesh : 1

World : 2785

Bangladesh-2

BRAC University

RANKING

Bangladesh : 2

World : 2924

Bangladesh-3

Bangladesh University of Engineering and Technology

RANKING

Bangladesh : 3

World : 3105

Bangladesh-4

North-South University Bangladesh

RANKING

Bangladesh : 4

World : 3461

Bangladesh-5

National University, Bangladesh

RANKING

Bangladesh : 5

World : 3511

Salary Data

Job designationAverage Salary (in BDT)Annual salary (in USD)
Financial Analyst33,500386.73
Office Manager23,600272.44
Business Analyst33,500386.73
Project Manager30,500351.71
Graphic Designer17,200198.34
Developer/Programmer27,100312.50
Sales Manager17,300199.41

Talent Sourcing Tips

Top Local Job Boards

Bdjobs.com , BDJobsToday.com , JOB.COM.BD

Number of LinkedIn users

4.80 Million

Top Recruitment Agencies

Amco Enterprise LimitedJob Placement BD Ltd.Catharsis International

Employing in Bangladesh

The employment laws of Bangladesh are governed by the Labor Act of 2006 and Labor Rules of 2015. In order to onboard an individual, the employer must know the  statutory provisions and regulations related to employment conditions in Bangladesh. This section mentions all the necessary information.

Employee Contract:

Employment contracts are preferred in the local language – Bengali or English, whichever is locally used. The employer has to mention all the required details of the employee along with bonuses, allowances and leaves.

Probation Period:

The probationary period followed in Austria ranges between three to six months.

Public and Provincial holidays:

DateNameType
21 FebLanguage Martyrs’ DayGovernment Holiday
17 MarSheikh Mujibur Rahman’s birthdayGovernment Holiday
19 MarShab e-Barat (Tentative Date)Government Holiday
26 MarIndependence DayGovernment Holiday
29 AprJumatul Bidah (Tentative Date)Government Holiday
29 AprShab-e-qadr (Tentative Date)Government Holiday
1 MayMay DayGovernment Holiday
2 MayEid ul-Fitr HolidayGovernment Holiday
3 MayEid ul-FitrGovernment Holiday
4 MayEid ul-Fitr HolidayGovernment Holiday
15 MayBuddha Purnima/VesakGovernment Holiday
9 JulEid al-Adha Holiday (Tentative Date)Government Holiday
10 JulEid al-AdhaGovernment Holiday
11 JulEid al-Adha Holiday (Tentative Date)Government Holiday
9 AugAshura (Tentative Date)Government Holiday
15 AugNational Mourning DayGovernment Holiday
18 AugJanmashtamiGovernment Holiday
5 OctDurga PujaGovernment Holiday
9 OctEid e-Milad-un Nabi (Tentative Date)Government Holiday
16 DecVictory DayGovernment Holiday
25 DecChristmas DayGovernment Holiday

Employee Leaves

Type of leaveTime PeriodMandatory
Annual leave/Earned Leave10 daysYes
Sick Leave14 daysYes
Maternity Leave16 weeksYes

Payroll

Payroll Cycle

The labor law states that employees’ wages must be paid within 7 days after the last day of the wage period.

Minimum Wage

The minimum wage in Bangladesh was last updated in 2020 and stands at 8100 BDT/Month.

Overtime Pay

Working beyond the normal hours is considered overtime and is paid at twice the regular rate.

Bonus

13th Month Pay:

After the first year of employment, the employees of Bangladesh are entitled to a festive bonus. Employers may provide two festive bonuses every year. Ideally the bonus should be equal to basic salary or 50% of the gross salary.

Employee Benefits:

Employers must provide the below mentioned benefits to the employees.

  • Festive Bonus
  • Maternity leave
  • Health Insurance

Taxes

Employer Payroll Tax:

The employer must contribute 5% of the profit to the Workers Profit Participation Fund as Social Security Contribution.

Employee Payroll Tax:

There is no employee contribution in Bangladesh.

Employee Income Tax:

Income tax varies depending on the residential status. Residents of Bangladesh are taxed for worldwide income, while non-residents are taxed only on the income generated from inside the country.

Residents are levied income tax on progressive tax rates. For non-residents, it is at a flat rate of 30%.

Taxable Income (BDT)Tax Rate(%)
Up to 300,0000
300,001 – 400,0005%
400,001 – 700,00010%
700,001 – 1,100,00015%
1,100,001 – 1,600,00020%
Above 1,600,00025%

VAT:

The standard rate of VAT followed is 15%.

Offboarding & Termination

In Bangladesh, termination of employment can be made either by the employer or the employee. Some of the grounds on which an employer can terminate an employee include – Redundancy, medicinal incapacity, misconduct, and conviction of crime.

The notice period for employees during the probationary period ranges from 7 to 30 days, while for permanent employees the range is from two months to four months.

A terminated worker is entitled to a compensation of 30 days’ wage for every completed year of service. Beyond a term of 10 years of service, it will be 45-days pay for each year completed. For employees dismissed on the grounds of misconduct, the payment will be of 15-days for each completed year.

Visa and Immigration

Employees from outside Bangladesh need an employment or work visa, which is issued by the Bangladesh Investment Development Authority (BIDA). An individual have to apply for the Employment or work visa. The individual have to submit the employment contract along with personal documents and a letter of recommendation from Bangladesh Export Processing Zones Authority (BEPZA) and the Board of Investment (BOI).

Streamline payroll and compliance for your international workforce