Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Bangladeshi Taka
Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in


, particularly if you don't have established local relationships. You can hire employees in


effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Bangladesh is a country in South Asia that is formally known as the People's Republic of Bangladesh. It is the world's eighth most populous country, with a population of more than 163 million people living in an area of 147,570 square kilometers, making it one of the world's most densely populated countries. Bangladesh is bordered on the west, north, and east by India, on the southeast by Myanmar, and on the south by the Bay of Bengal. In the north, the Siliguri Corridor separates it from Nepal and Bhutan, and the Siliguri Corridor separates it from China. Dhaka, the country's capital and largest city, serves as the country's economic, political, and cultural nerve center. The second-largest city is Chittagong, which is also the country's largest seaport. Bangladesh is the easternmost and largest country in the Bengal region. The Vanga Kingdom, one of the namesakes of the Bengal region, was a powerful naval force, according to the ancient Indian texts Rmyana and Mahbhrata. The Pundra, Gangaridai, Gauda, Samatata, and Harikela were among the principalities that ruled the Indian subcontinent during the ancient and classical times. It was also a Mauryan province during Ashoka's rule. The principalities were known for their overseas trade, connections with the Roman world, fine muslin and silk export to the Middle East, and the dissemination of philosophy and art to Southeast Asia. The last pre-Islamic Bengali middle kingdoms were the Gupta Empire, Pala Empire, Chandra dynasty, and Sena dynasty. Islam was introduced during the Pala Empire through trade with the Abbsid Caliphate, but it spread throughout the entire region after the Ghurid conquests led by Bakhtiyr Khalj, the establishment of the Delhi Sultanate, and the preaching of Shah Jall in the north-east. The Mughal Empire conquered the powerful Bengal Sultanate in 1576, but its reign was briefly disrupted by the Sr Empire. Mughal Bengal, which accounted for 12% of global GDP, ushered in proto-industrialization, showed signs of a potential Industrial Revolution, developed trade ties with the Dutch and English East India Companies, and served as the backdrop to the Anglo-Mughal War. The area became a semi-independent state under the Nawabs of Bengal after Emperor Aurangzb lamgir and Governor Shista Khn died in the early 1700s. The last Nawab of Bengal, Sirj ud-Daulah, was defeated by the British East India Company at the Battle of Plassey in 1757, and the entire area fell under Company rule by 1793. Following the fall of the British Bengal Presidency, the boundaries of modern Bangladesh were formed with the partition of Bengal in August 1947, when the region became East Pakistan as a province of India. Later, Bengali nationalism and self-determination fueled a pro-democracy movement that culminated in the Liberation War and the establishment of Bangladesh as a sovereign and independent nation in 1971.

04. Public holidays

05. Types of leave

Paid time off

If you work in a commercial enterprise, factory, shop, or transportation, you get one day of paid leave for every 18 days of work after a year of service. If they work for a newspaper, they get one day off for every eleven days they work. They get one day off every 22 workdays if they work on a tea plantation. Any unused vacation time can be carried over for a total of 60 days unless the person works in a manufacturing, in which case they can carry over 40 days.

Public holidays

The following public Holidays are observed in Bangladesh:New Year’s DayLanguage Martyrs’ DayBirthday of the father of the Nation, Bangabandhu Sheikh Mujibur RahmanIndependence DayBengali New YearMay DayJumatul BidahBuddha PurnimaEid-ul-FitrEid-ul-AdhaNational Mourning DayShuba JanmashtamiDurga PujaAshuraEid-e-Miladun-NabiVictory DayChristmas Day

Sick days

Except for newspaper staff, who receive 14 days of sick leave each year after a year of service. To get sick leave, the employee must submit a medical certificate, and sick leave cannot be carried over from year to year. Sick leave is compensated at the employee's regular rate of pay.

Maternity leave

Before and after the delivery, female employees are entitled to eight weeks of fully compensated maternity leave. To be eligible, you must furnish an employer with a medical certificate confirming your pregnancy. Expectant moms who have worked for their firm for less than six months or who have previously worked for two years will be given unpaid maternity leave.

Paternity leave

There are no legal provisions for paternity leave.

Parental leave

Other than the already mentioned terms for maternity leave, there are no other provisions in the Bangladesh law regarding parental leave.

Other leave

06. Employment termination

Termination process

Employees may be sacked without notice or severance pay for misbehavior, or they may be demoted, barred from promotion for a year, fined, or cautioned. Otherwise, companies must offer early notice of termination to employees.

Notice period

The notice period is 120 days for monthly paid employees and 60 days for other employees. Additionally, the company may compensate the employee in lieu of notice.

Severance pay

Severance pay begins at 30 days for each year of service and increases to 45 days for each year of service beyond ten years. If an employee is terminated for misconduct, he or she is entitled to a minimum of 15 days of severance pay for each completed year of service.

Probation period

Clerical employees are entitled to a six-month probationary period; other employees are entitled to a three-month probationary period.

07. Working hours


The typical work week is 48 hours long, with an eight-hour workday. Adult employees, on the other hand, may work up to 60 hours a week.


Overtime is when an employee works more than 40 hours in a week and is paid at twice the regular rate.

08. Minimum wage


After a year of service, employees in Bangladesh receive a festival bonus. The bonus is paid twice a year and must be at least equal to the base salary.

In 2018, Bangladesh's national minimum wage was 1,500 Bangladeshi Taka (17.75 USD). This was increased to 8000 BDT (94.68 USD) per month in 2019 and to 8100 BDT (95.87 USD) per month in 2020. The minimum wage, on the other hand, may vary by sector. For instance, factory workers in Bangladesh earn a monthly minimum wage of $68. Although Bangladesh's compensation laws do not require employers to provide additional bonuses, employers frequently provide housing assistance, education subsidies, and transportation allowances in addition to a base salary.

09. Employee benefits


It is strongly advised to get private health insurance. Because of the difficulties in financing public healthcare, private health insurance is often provided as a perk.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in


to hire a team takes time, money, and effort. The labor law in


has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into


simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in


give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in


via our Employer of Record / PEO solution.

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