Employer Of Record in Bangladesh
We make it easy and painless to expand your business into Bangladesh. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.
Accelerate your growth into Bangladesh
Compliantly and hassle-free
How we can help you expand in Bangladesh
As your EOR in Bangladesh we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Your candidate is hired by a PEO in Bangladesh provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team.
Expand to Bangladesh with Serviap Global
Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity.
In just a few days, you can easily and safely build a presence in Bangladesh being sure that your staff will be hired in compliance with labor and tax regulations.
Quick Facts
Currency:
Bangladeshi Taka (BDT)
Capital:
Dhaka
Payroll Cycle:
Monthly
Language(s):
Bengali
Bangladesh Country Facts
Bangladesh is a country found in South Asia. It has a large labor force and low-cost labor and materials. Bangladesh is gradually flourishing in its commerce and industry. Still primarily a rural culture, even those citizens living in a big city will feel strong ties to their ancestors.
The Economy
Bangladesh is a developing market that’s enjoyed a steady rise in economic growth in recent years.
Agriculture is the leading industry across the entire country. It has much to offer given low infrastructure costs (transportation, electricity, and telecommunication) combined with low labor costs.
The Importance of Small and Medium-sized Companies
Small- and medium-sized enterprises (SMEs) are the foundation for future economic improvement in Bangladesh. SMEs employ many people and produce many products that are affordable to the poor and help alleviate poverty through employment and affordable goods.
Population Characteristics
Bangladesh people live in mainly rural areas and are highly self-sufficient. They grow their food and make their textiles. Still developing as a nation, the literacy rate is around 61%. Many people in Bangladesh speak English due to the history of the British colonization of the country. As a result, English is widely understood in the written and spoken word.
Economic Opportunities
Banking experts find Bangladesh is experiencing tremendous economic growth compared to other emerging markets. This is because Bangladesh boasts cheap labor as well as low-cost raw materials.
Key Sectors of the National Economy
These key sectors include:
- Clothing and Apparel
- Agriculture
- Telecommunication
- Power
- Software
- Consumer Goods
Human Talent
Many Bangladeshi speak English and already have the basic skills required by many industries. Employers find it increasingly common to have a growing supply of potential employees with professional credentials and training in technology sectors. Technical training is available in universities, colleges, and technical training centers in the countries, focusing on technology industry opportunities each year.
Prominent Cities for Business
- Dhaka
The capital city is the most significant economic center in the Eastern South Asia. Dhaka is also easy
to reach from nearby neighboring countries. - Chittagong
This coastal city is a major financial center in southeast Bangladesh. It’s also the second-largest city in
the country. - Rajshahi
Rajshahi is a metropolitan city home to many businesses in the country. Famous for its silk, this is also
where you’ll find Rajshahi University.
Technological Ecosystem
Market researchers find Bangladesh is coming into its own as a country that manufactures digital devices. These items then go out to the global sector.
Facilities for Foreign Investment
Development and diversification are top priorities of the Bangladesh government. Efforts to grow the country’s economy are led by the Ministry of Commerce with the goal of increasing the country’s industrial base and foreign trade.
Business Culture in Bangladesh
- Use Titles
The title matters the most in Bangladesh, so make sure to match the people’s positions attending the meeting. - Timing
Do not schedule any meetings for 1 pm; Bangladeshis pray at 1:15 pm then eat. - Small Talk
Even a business meeting will begin with some small talk. The entire process of closing a deal can be lengthy; Bangladeshis rarely make business decisions during an initial meeting.
Bangladesh Gastronomy: regional and traditional cuisines
Curries are among the most popular foods in Bangladesh
Tea is the national beverage of Bangladesh. The drink was initially brought to the country by the British.
Hilsa curry. Hilsa is a fish. The curry includes turmeric and chili paste. Once the fish is slowly fried on low heat, it’s topped with mustard gravy and a side of rice. The fish is commonly eaten whole, including the head and eggs.
Panta Bhat is leftover rice with a kick. It’s soaked in water overnight to let it ferment. Then, it’s served as a breakfast staple with chili and onion in the morning.
General Highlights
| Year | 2022 |
| Country | People’s Republic of Bangladesh |
| Capital | Dhaka |
| Num. States / Province | 64 districts |
| Principal Cities | Dhaka, Chittagong, Khulna and Rajshahi |
| Language | Bangla – Westerners often use Bengali |
| Local Currency | Taka |
| Major Religion | Islam |
| Date Format | None officially standardized |
| Thousands Separator Format | 99,999,999.99 |
| Country Dial Code | +880 |
| Time Zone | Bangladesh Standard Time BST GMT/UTC + 6h |
| Population | 166 million |
| Border Countries | Burma, India and Nepal |
| Continental surface | 144,000 km2 |
| Fiscal Year | July 1 – June 30 |
| VAT % | Variable depending on type of product or service between 5%-10% |
Minimum Wage | 1,500 taka per month (approximately $17.45 USD) (That rate may be higher if the employee is part of an industry with specific, set, wages) |
| Taxpayer Identification Number Name in the country | TIN |
| Current President | Abdul Hamid |
What you need to know about employing personal in Bangladesh:
Laws and Agencies that regulate labor relationships
| Laws | Brief Description |
| Constitution of Bangladesh | The Bangladesh Constitution sets out workers’ rights to join a union. |
| Labor Code | 2006 Labor Act and Labor Rules. |
| Tax Code | Tax policies and laws. |
| Social Security/Social Insurance | This is in a planning and reformation stage according to the Insurance Development and Regulatory Authority in Bangladesh. |
Key Tax and Labor Authorities
| The National Board of Revenue (NBR) | NBR is attached to the Internal Resources Division of the Ministry of Finance |
| The Deputy Commissioner of Taxes |
Sazid Khan is currently in this position. |
Labor Contracts
| Bangladesh Labour Act 2006 | This act oversees the laws that regulate labor and employment. |
| The Contract Act, 1872 | This governs all contracts in Bangladesh |
| The International Labor Organization | They are members |
| Work Hours | Usually an employee in Bangladesh is off Friday and Saturday each week. The work week is made up of 40 hours |
Payroll
Legal Benefits in Bangladesh
| Minimum Wage | 1,500 taka per month (approximately $17.45 USD) (That rate may be higher if the employee is part of an industry with specific, set wages). |
| Overtime | The workday is 8 hours for an adult worker. The employee can work a ten hour day if the employer pays double his usual wages. |
| Annual Bonus | In Bangladesh, there are two festival bonuses each year (for employees who have been employed for at least a year). The bonus is not to be more than basic salary. |
| Employment Injury Insurance | Not all workers in every industry in Bangladesh are covered under the country’s occupational health and safety framework. |
| Vacations or PTO | People employed for at least a year get: One day for every 18 work days — in industrial, commercial, factory or road transport business One day for every 22 work days — tea plantation workers One day for every 11 work days — newspaper worker |
Leaves of Absence Employees have the right to paid absences for the following things: | Sick: 14 paid sick days a year
Maternity: 8 weeks of paid leave before the birth and another 8 weeks of paid leave after the child’s birth. |
Employers Contribution or Labor Cost
Annual Taxable Income
| Over this amount | Not over this amount | Tax % on Excess |
| 0 | 250,000.00 taka | 0% |
| 250,000.01 | 400,000.00 | 10% |
| 400,000.01 | 500,000.00 | 15% |
| 500,000.01 | 600,000.00 | 20% |
| 600,000.01 | 3,000,000.00 | 25% |
| 3,000,000.01 and above | 30% |
Corporate Tax Rates
| Taxable Gross Income | Tax Rate |
| Flat rate | 32.5% |
Disability
A worker permanently disabled on the job is to get compensation in the amount of anticipated earnings over their lifetime. Dependents of deceased workers can also get up to 60% of the worker’s wage at time of death.
Public Holidays
| Date | Holiday Name |
| February 21 | Shaheed Day |
| March 17 | Sheikh Mujibur Rahman’s Birthday |
| March 18 | Shab e-Barat |
| March 26 | Independence Day |
| April 14 | Bengali New Year/Bihu |
| April 29 | Jumatul Bidah |
| May 3 | Eid Ul Fitr |
| May 16 | Buddha Purnima |
| May 28 | Laylat al Qadr |
| July 10 | Eid Al-Adha |
| August 9 | Ashura |
| August 15 | National Mourning Day |
| August 19 | Shuba Janmashtami |
| October 5 | Vijaya Dashami |
| October 9 | Eid-e-Milad-un-Nabi |
| December 16 | Victory Day |
| December 25 | Christmas Day |
Termination
| Type of Termination | Brief Description |
| Justified Dismissal | “Retrenchment” is when the employee has done nothing wrong, but they’re being let go for the overall health of the business. |
| Unjustified Dismissal | Employers are allowed to terminate employees without showing cause. |
| Voluntary Resignation | The employment contract can be ended by either the employer or the employee voluntarily. |
Other forms of compensation upon termination include
Length of Employment | Severance Amount |
For each year of employment up to 10 years | 30 days’ wages |
For each year of employment above 10 years | 45 days’ wages |
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