
Lucas Botzen
Founder & Managing Director
Last updated:
September 21, 2025
What is an Employer of Record in Bangladesh?
View our Employer of Record servicesAn Employer of Record (EOR) in Bangladesh is a company that legally employs workers on your behalf. This means you can hire talent in Bangladesh without setting up a local entity. The EOR handles all the HR tasks like payroll, taxes, benefits, and compliance with local labor laws. You manage your team's day-to-day work, while the EOR takes care of the administrative side. It's a straightforward way to build a team in a new country.
Rivermate can act as your Employer of Record in Bangladesh, simplifying your global expansion.
How an Employer of Record (EOR) Works in Bangladesh
Using an EOR in Bangladesh follows a simple process. You find the talent, and the EOR legally hires them for you.
Here is how it works:
- You Choose Your Candidate. You recruit and select the person you want to hire in Bangladesh.
- The EOR Creates a Local Contract. The EOR drafts a compliant employment contract that meets all Bangladeshi labor laws.
- The EOR Onboards Your New Hire. They handle all the necessary paperwork, including tax forms and bank details for payroll.
- You Manage Your Employee. The employee works for your company, following your direction and contributing to your business goals.
- The EOR Handles HR and Payroll. The EOR manages payroll, ensures taxes are paid, and administers benefits, all in compliance with local regulations.
Benefits of Using an EOR for Hiring in Bangladesh
Using an EOR to hire in Bangladesh saves you time and reduces complexity. It allows you to enter a new market quickly and efficiently, without the need to navigate unfamiliar legal and administrative systems on your own.
- Hire Without a Local Entity. You can build a team in Bangladesh without the cost and time of setting up a legal entity.
- Ensure Compliance. EORs are experts in local labor laws, so you can be confident that your hiring practices are fully compliant.
- Simplify Payroll and Taxes. The EOR manages all aspects of payroll and tax withholding for your Bangladeshi employees.
- Focus on Your Business. With the administrative tasks handled, you can focus on your core business and managing your team.
- Access to Local Expertise. EORs provide valuable insights into local employment standards and benefits expectations.
Responsibilities of an Employer of Record
As an Employer of Record in Bangladesh, Rivermate is responsible for:
- Creating and managing the employment contracts
- Running the monthly payroll
- Providing local and global benefits
- Ensuring 100% local compliance
- Providing local HR support
Responsibilities of the company that hires the employee
As the company that hires the employee through the Employer of Record, you are responsible for:
- Day-to-day management of the employee
- Work assignments
- Performance management
- Training and development
Costs of using an Employer of Record in Bangladesh
Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Bangladesh includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Bangladesh.
Employ top talent in Bangladesh through our Employer of Record service
Book a call with our EOR experts to learn more about how we can help you in Bangladesh







Book a call with our EOR experts to learn more about how we can help you in Bangladesh.
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Hiring in Bangladesh
Hiring in Bangladesh offers access to a large and growing workforce. The country's economy is expanding, and many skilled workers are available, particularly in the IT and garment sectors. To hire employees, you generally need to establish a local legal entity or partner with an Employer of Record (EOR). The main piece of legislation governing employment is the Bangladesh Labor Act of 2006, which sets the rules for employment contracts, working conditions, and termination.
Employment contracts & must-have clauses
You must provide employees with a written employment contract. For clarity and legal compliance, the contract should be in both Bengali and English. Think of the contract as the foundation of your relationship with your employee. It needs to be solid.
Your employment contracts should include these key details:
- Company and employee information
- Job title and description
- Start date
- Probationary period
- Salary and any other compensation in Bangladeshi Taka (BDT)
- Working hours
- Leave entitlements
- Termination requirements
Probation periods
In Bangladesh, you can use a probation period to assess a new employee's suitability. The length of this period depends on the type of role.
Worker Type | Initial Probation Period | Possible Extension |
---|---|---|
Clerical Worker | 6 months | Not extendable |
Other Workers | 3 months | Can be extended by 3 months |
After the probation period ends, the employee automatically becomes permanent, even without a confirmation letter.
Working hours & overtime
A standard work week in Bangladesh is 48 hours. Typically, this is worked over six days, with Friday being the usual day off. Daily work hours should not exceed eight hours, although with overtime, an employee can work up to ten hours a day.
Overtime is paid at twice the rate of the basic salary. Total weekly hours, including overtime, should not exceed 60 hours.
Public & regional holidays
Your employees in Bangladesh are entitled to paid festival holidays. The government announces a list of public holidays each year. While some dates are fixed, others depend on the lunar calendar.
Here are the expected public holidays for 2025:
Date | Holiday |
---|---|
February 15 | Shab e-Barat |
February 21 | Language Martyrs' Day |
March 26 | Independence Day |
March 28 | Shab-e-qadr |
March 29 | Eid ul-Fitr Holiday |
March 30 | Eid ul-Fitr Holiday |
March 31 | Eid ul-Fitr |
April 1 | Eid ul-Fitr Holiday |
April 14 | Bengali New Year |
May 1 | May Day |
May 11 | Buddha Purnima/Vesak |
June 5 | Eid al-Adha Holiday |
Hiring contractors in Bangladesh
You can hire independent contractors for specialized, project-based work. This offers flexibility. However, it's crucial to classify workers correctly.
The main difference between an employee and an independent contractor comes down to control. You direct an employee's work, including their hours and location. A contractor, on the other hand, has more independence, uses their own tools, and decides how to complete the work.
Misclassifying an employee as a contractor can lead to serious problems. If a worker is found to be misclassified, you could be liable for back taxes, unpaid benefits, and other penalties. This is a significant risk.
An EOR can help you avoid these risks. We hire the worker on your behalf, making sure they are classified correctly according to local labor laws. This lets you work with talent in Bangladesh without the legal and financial risks of misclassification. We handle the complexities so you can focus on growing your business.
Compensation and Payroll in Bangladesh
Navigating compensation and payroll in Bangladesh requires a clear understanding of local laws and practices. The system is governed by the Bangladesh Labour Act of 2006, which sets the rules for wage payments, minimum wage, and taxes. Your payroll process involves calculating salaries, allowances, and any bonuses, then making the necessary deductions for taxes and other contributions. It’s a structured process designed to be transparent and fair for both you and your employees.
Payroll cycles & wage structure
In Bangladesh, you typically run payroll on a monthly cycle. For companies with fewer than 100 employees, you must pay wages within seven working days after the wage period closes. If you have 100 or more workers, this extends to ten working days.
A typical wage structure includes:
- Basic Salary: This is the fixed part of the compensation as agreed in the employment contract. It usually makes up 50-60% of the gross salary.
- Allowances: Many employers offer allowances for housing, transport, and medical expenses.
- Bonuses: Employees who have completed at least one year of service are entitled to two festival bonuses each year.
Overtime & minimums
The standard work week in Bangladesh is 48 hours, usually divided into six 8-hour days. Any work beyond this is considered overtime. You cannot ask an employee to work more than 60 hours in a week, and the annual average should not exceed 56 hours per week. The overtime pay rate is double the employee's regular hourly wage.
Minimum wage varies by industry. For example, in the garment industry, the minimum wage is BDT 12,500 per month. These sector-specific minimums are set by the government.
Employer taxes and contributions
As an employer in Bangladesh, you have a few key financial responsibilities. There is no mandatory social security contribution. However, you are responsible for corporate income tax and may need to contribute to a workers' fund. If at least three-fourths of your employees request it, you must also establish a provident fund and make matching contributions.
Contribution | Rate | Notes |
---|---|---|
Corporate Income Tax (Publicly Listed) | 25% | This is the tax on your company's profits if you are listed on the stock exchange. |
Corporate Income Tax (Non-Listed) | 35% | This is the tax on your company's profits if you are a private company. |
Workers' Profit Participation Fund (WPPF) | 5% of net profit | Required for companies that meet certain capital and asset thresholds. |
Provident Fund | Varies (typically 7-8%) | This is a retirement fund. Your contribution must match the employee's contribution. |
Employee taxes and deductions
You must withhold income tax from your employees' salaries. This is known as Tax Deducted at Source (TDS). The income tax system is progressive, meaning the rate increases with income.
Here are the personal income tax rates for employees:
Taxable Income (BDT) | Tax Rate |
---|---|
Up to 350,000 | 0% |
350,001 to 450,000 | 5% |
450,001 to 750,000 | 10% |
750,001 to 1,150,000 | 15% |
1,150,001 to 1,650,000 | 20% |
Above 1,650,000 | 25% |
How an Employer of Record, like Rivermate can help with payroll taxes and compliance in Bangladesh
An Employer of Record (EOR) manages monthly payroll calculations, employer contributions, and tax filings in-country on your behalf. Rivermate handles registrations, payslips, statutory reporting, and remittances to authorities so you stay compliant with local rules and deadlines—without setting up a local entity. Our specialists monitor regulatory changes and ensure correct rates, thresholds, and caps are applied to every payroll cycle.
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Benefits and Leave in Bangladesh
In Bangladesh, providing competitive employee benefits and understanding leave policies is key to attracting and retaining talent. The Bangladesh Labour Act of 2006 outlines the minimum requirements for employers. This guide breaks down the essential benefits and leave entitlements for your employees in Bangladesh.
Statutory Leave
You must provide your employees with the following types of paid leave.
- Casual Leave: Employees get 10 days of paid leave per year for emergencies or other personal matters. Unused casual leave does not carry over to the next year.
- Sick Leave: Employees are entitled to 14 days of sick leave annually at their full wages. To use this leave, an employee generally needs to provide a medical certificate.
- Annual Leave (Earned Leave): After one year of continuous service, an employee earns paid annual leave. The amount of leave depends on their industry. For most commercial or industrial workers, this is calculated as one day of leave for every 18 days worked.
- Maternity Leave: Female employees are entitled to 16 weeks of maternity leave, typically split with 8 weeks before and 8 weeks after childbirth. To be eligible for paid maternity leave, an employee must have worked for you for at least six months.
- Festival Leave: You must provide employees with festival leave to observe their religious holidays.
Public Holidays & Regional Holidays
Your employees are entitled to paid holidays each year. While the exact number of festival holidays can vary, employees generally receive around 11 paid festival holidays. If an employee works on a festival holiday, you must provide them with two compensatory paid holidays and a substitute day off.
Here is a list of public holidays in Bangladesh for 2025. Please note that dates for Islamic holidays are subject to the sighting of the moon.
Date | Day | Holiday |
---|---|---|
February 15 | Saturday | Shab e-Barat |
February 21 | Friday | Language Martyrs' Day |
March 26 | Wednesday | Independence Day |
March 28 | Friday | Jumatul Bidah |
March 28 | Friday | Laylat al-Qadr |
March 29-31 | Saturday-Monday | Eid ul-Fitr Holiday |
April 1-3 | Tuesday-Thursday | Eid ul-Fitr Holiday |
April 14 | Monday | Bengali New Year |
May 1 | Thursday | May Day |
May 11 | Sunday | Buddha Purnima |
June 5-7 | Thursday-Saturday | Eid al-Adha Holiday |
August 15 | Friday | National Mourning Day |
August 26 | Tuesday | Janmashtami |
September 24 | Wednesday | Ashura |
October 1-2 | Wednesday-Thursday | Durga Puja |
December 16 | Tuesday | Victory Day |
December 25 | Thursday | Christmas Day |
Typical Supplemental Benefits
To stay competitive, many employers in Bangladesh offer benefits that go beyond the legal requirements.
Statutory Benefits | Non-Statutory (Supplemental) Benefits |
---|---|
Minimum Wage | Health Insurance (including dental and vision) |
Overtime Pay | Transportation Allowances |
Festival Bonuses | Provident Fund |
Paid Leave (Annual, Sick, Casual, Maternity) | Performance Bonuses |
Provident Fund (in some cases) | Life Insurance |
Gratuity | Fitness Programs or Memberships |
How an EOR Can Help with Setting Up Benefits
Setting up a comprehensive and compliant benefits package in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.
An EOR already has a legal entity in Bangladesh. This means you don't have to go through the lengthy process of setting one up yourself. We handle all the administrative tasks related to employee benefits.
Here’s how we can help:
- Compliance: We ensure your benefits package complies with all local labor laws, including the Bangladesh Labour Act.
- Administration: We manage everything from enrolling employees in mandatory social security to administering paid leave.
- Competitive Packages: We can advise you on what supplemental benefits are common in the market to help you attract top talent.
- Payroll: We handle all payroll calculations, including deductions for benefits and taxes.
Using an EOR allows you to offer your employees in Bangladesh a competitive and compliant benefits package from day one, without the administrative burden.
How an Employer of Record, like Rivermate can help with local benefits in Bangladesh
Rivermate provides compliant, locally competitive benefits—such as health insurance, pension, and statutory coverages—integrated into one EOR platform. We administer enrollments, manage renewals, and ensure contributions and withholdings meet country requirements so your team receives the right benefits without added overhead.
Termination and Offboarding in Bangladesh
When an employment relationship ends in Bangladesh, you need to follow a specific process. This involves giving the correct notice period, calculating final pay, and handling the paperwork. The Bangladesh Labour Act of 2006 sets the rules for both employers and employees. Following these rules is important for a smooth and legal exit process.
Notice periods
You must give employees written notice before termination. The length of the notice period depends on their employment status and pay cycle.
Employee Type | Pay Cycle | Notice Period |
---|---|---|
Permanent | Monthly Paid | 60 days |
Permanent | Other | 30 days |
Temporary | Monthly Paid | 30 days |
Temporary | Other | 15 days |
Alternatively, you can pay the employee their wages for the notice period instead of having them work.
If an employee resigns, they also need to provide notice. A monthly paid worker must give 30 days' notice, while others must give 14 days.
Severance pay
When you terminate an employee for reasons like redundancy, you must pay them compensation. This is calculated as 30 days' wages for every year they have worked for you.
If your company has a gratuity policy, you will pay the gratuity amount or the compensation, whichever is higher. An employee is entitled to gratuity after completing at least one year of continuous service.
Severance pay is not typically required if an employee is dismissed for proven misconduct.
How Rivermate handles compliant exits
Navigating employee exits in a different country can be complex. We make sure every termination in Bangladesh is handled correctly and legally.
Here’s how we help you stay compliant:
- Clear Process: We follow a structured process for every exit, whether it's a resignation or a termination.
- Legal Compliance: We stay up to date with the Bangladesh Labour Act to ensure every step is compliant. This includes managing the correct notice periods and calculating all final payments.
- Documentation: We handle all the necessary paperwork. This includes issuing the written termination order and providing a clear final settlement.
- Final Pay: We calculate and process all final dues. This includes any payment in lieu of notice, severance pay, and unused leave.
We manage the entire offboarding process for you. This lets you focus on your business while we handle the local legal requirements.
Visa and work permits in Bangladesh
Getting the right visas and work permits in Bangladesh is essential for your team. The process involves multiple government bodies, including the Bangladesh Investment Development Authority (BIDA) or the Bangladesh Export Processing Zones Authority (BEPZA). A work visa allows a foreign national to enter the country for a job. A work permit gives them the legal authorization to actually perform that job. You must get the work visa first, then the employee can travel to Bangladesh. Once they arrive, you have 15 days to apply for their work permit.
Employment visas & sponsorship realities
An Employer of Record (EOR) can sponsor work permits and visas for your employees in Bangladesh. This service simplifies your expansion by handling the legal and administrative tasks of hiring foreign nationals. An EOR acts as the legal employer, managing payroll, taxes, benefits, and compliance with local labor laws.
Here is what an EOR can typically do:
- Sponsor employment visas and work permits.
- Manage the application process with authorities like BIDA.
- Ensure compliance with immigration and employment regulations.
- Handle HR tasks like drafting employment contracts and managing payroll.
However, there are practical limits. The ability to sponsor foreign employees can be affected by visa quotas. This means there may be restrictions on the number of foreign workers a company can hire.
Business travel compliance
For short-term visits, a business visa is the correct route. This visa is for activities like attending meetings, negotiating contracts, or participating in training. It is not for employment.
Key points for business travel:
- Purpose: The visit must be for business activities, not paid work.
- Invitation: You will need an invitation letter from a company in Bangladesh.
- Duration: A business visa is often issued for up to one year with multiple entries, but each stay is typically limited to a maximum of 60 days.
- No Employment: A person on a business visa cannot legally work in Bangladesh.
Always make sure your team members use the correct visa for their activities to avoid legal issues.
How an Employer of Record, like Rivermate can help with work permits in Bangladesh
Navigating work permits can be complex and time‑sensitive. Rivermate coordinates the entire process end‑to‑end: determining the right visa category, preparing employer and employee documentation, liaising with local authorities, and ensuring full compliance with country‑specific rules. Our in‑country experts accelerate timelines, minimize refusals, and keep you updated on each milestone so your hire can start on time—legally and confidently.
Frequently asked questions about EOR in Bangladesh
About the author

Lucas Botzen
Lucas Botzen is the founder of Rivermate, a global HR platform specializing in international payroll, compliance, and benefits management for remote companies. He previously co-founded and successfully exited Boloo, scaling it to over €2 million in annual revenue. Lucas is passionate about technology, automation, and remote work, advocating for innovative digital solutions that streamline global employment.