Employer of Record in Bangladesh

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Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Bangladesh . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Bangladesh.

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1. Grow your team in Bangladesh with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Bangladesh , particularly if you don't have established local relationships. You can hire employees in Bangladesh effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Bangladesh is a South Asian nation that is officially known as the People's Republic of Bangladesh. It is the world's eighth-most populous nation, with a population of more than 163 million people living in an area of either 148,460 square kilometers (57,320 sq mi) or 147,570 square kilometers (56,980 sq mi), making it one of the world's most densely inhabited countries. Bangladesh has land borders with India to the west, north, and east, as well as Myanmar to the southeast, and has a coastline along the Bay of Bengal to the south. It is divided from Nepal and Bhutan by the Siliguri Corridor, and from China by 100 kilometers in the north of the Indian state of Sikkim. Dhaka, the capital and biggest city, serves as the country's economic, political, and cultural center. The second-biggest city is Chittagong, the major seaport. Bengali, one of the Indo-European language family's easternmost branches, is the national language.

Bangladesh is the sovereign portion of the historic and ethnolinguistic area of Bengal, which was partitioned during British India's Partition in 1947. The nation is dominated by Bengali Muslims. As the home of the states of Vanga, Pundra, Gangaridai, Gauda, Samatata, and Harikela, ancient Bengal was an important cultural hub in the Indian subcontinent. The final pre-Islamic rulers of Bengal were the Mauryan, Gupta, Pala, Sena, Chandra, and Deva kingdoms. Bakhtiar Khalji overran northern Bengal and attacked Tibet in 1204, beginning the Muslim invasion of Bengal. In the 14th century, three city-states arose as part of the Delhi Sultanate, with Sonargaon ruling over most of eastern Bengal. Sufi missionary leaders such as Sultan Balkhi, Shah Jalal, and Shah Makhdum Rupos contributed to the expansion of Muslim power. The Bengal Sultanate became an autonomous, unitary state. Eastern Bengal thrived during Mughal control as a melting pot of Muslims in the eastern subcontinent, attracting merchants from all over the globe. Under the Nawabs of Bengal in the 18th century, Mughal Bengal grew more forceful and autonomous. The defection of Mir Jafar in 1757 culminated in Nawab Siraj-ud-loss Daulah's to the British East India Company and ultimate British control over South Asia. The Bengal Presidency expanded to become British India's biggest administrative subdivision. The formation of Eastern Bengal and Assam in 1905 established a pattern for the establishment of Bangladesh. The first Prime Minister of Bengal endorsed the Lahore Resolution with the goal of establishing a state in eastern South Asia in 1940. Prior to Bengal's division, the Prime Minister suggested a Bengali independent state. Bangladesh's current geographical limit was set by a referendum and the proclamation of the Radcliffe Line.

East Bengal became the Dominion of Pakistan's most populated province in 1947. East Pakistan was renamed, and Dhaka became the country's legislative capital. The Bengali Language Movement in 1952, the East Bengali parliamentary election in 1954, the Pakistani coup d'état in 1958, the Six Point Movement in 1966, and the Pakistani general election in 1970 all contributed to the emergence of Bengali nationalism and pro-democracy activities in East Pakistan. The unwillingness of the Pakistani military junta to hand over power to the Awami League, led to the Bangladesh Liberation War in 1971, in which the Mukti Bahini, assisted by India, conducted a successful armed revolution. During the fight, there was a genocide in Bangladesh in 1971, as well as a slaughter of pro-independence Bengali civilians, including intellectuals. In 1972, Bangladesh became the first legally secular state in South Asia. In 1988, Islam was named the official religion. The Bangladesh Supreme Court upheld secular elements in the country's constitution in 2010.

Bangladesh is a Westminster-style unitary parliamentary constitutional republic. Bengalis account for 98 percent of Bangladesh's overall population, and the country's substantial Muslim population places it third among Muslim-majority countries. There are eight divisions, 64 districts, and 495 subdistricts in the nation. It has the third-largest military in South Asia, behind India and Pakistan, and has contributed significantly to UN peacekeeping missions. Bangladesh, a middle power in the Indo-Pacific, is a developing economy rated 41st in the world by nominal GDP and 29th by PPP. As a result of the Rohingya genocide, it has one of the world's biggest refugee populations. Bangladesh is confronted with several issues, including the negative consequences of climate change, poverty, illiteracy, corruption, authoritarianism, and human rights violations. However, the poverty rate has been cut in half since 2011, and the nation is predicted to become a middle-income country by the end of the decade. Bangladesh, once a historic hub of the muslin fabric trade, is today one of the world's major contemporary garment exporters.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Bangladesh is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

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 Day

Language Martyrs’ Day

Birthday of the father of the Nation, Bangabandhu Sheikh Mujibur Rahman

Independence Day

Bengali New Year

May Day

Jumatul Bidah

Buddha Purnima



National Mourning Day

Shuba Janmashtami

Durga Puja



Victory Day

Christmas 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

5. Employment termination

There is no information about employment information for this country.

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.

Probation period

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

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.

6. Working hours

There is no information about the working hours for this country.

General working schedule

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.

7. Minimum wage

There is no information about the minimum wage for this country.

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.

8. Employee benefits

There is no information about the employee benefits for this country.

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.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

The tax legislation levies a 25% income tax on listed companies and a 32.5 percent levy on non-listed firms. This year's corporate tax rate changes include an additional 2.5 percent surcharge on tobacco companies' income; a reduction in the corporate income tax rate for companies in the readymade garments sector to 15 percent (from 20 percent); and a further 1 percent rate reduction (to 14 percent) for companies in the readymade garments sector that have an internationally recognized brand.

Certain businesses continue to be taxed at various rates. Banking, insurance, and non-banking financial institutions are taxed at 40% if they are listed, and 42.5 percent if they are not. Manufacturers of cigarettes and mobile phone operators are taxed at a rate of 45 percent (before the additional surcharge on cigarette manufacturers noted above). Firms that manufacture and export knitwear and woven clothes pay a lower corporation tax rate of 20%, while companies that manufacture or export jute goods pay a tax rate of 10%.

In general, a company's export profits are deductible to the tune of 50%. The tax day (i.e. tax return due date) for corporations is now the 15th day of the seventh month after the end of the income year; alternatively, if that fifteenth day falls before 15 September, the tax day is the 15th day of the year following the end of the income year.

Individual income tax

For individuals with maximum earnings of ৳3,00,000, no income tax will be imposed.

For individuals with earnings from৳3,00,000 to ৳6,00,000, the income tax rate is 10 percent.

For individuals earning from ৳10,00,000 to 13,00,000, the income tax rate is 20 percent.

For individuals earning above above ৳13,00,000, the income tax rate is 25 percent.

VAT, GST and sales tax

The normal VAT rate is 15%, which is charged on the transaction value of the majority of imports and supply of goods and services.

10. VISA and work permits

There is no information about VISA and work permits for this country.

Bangladesh requires all foreign visitors to obtain permission before entering the country. Visas are issued by Bangladesh diplomatic missions worldwide or, if applicable, on arrival in Bangladesh. Genuine tourists, investors, and business travelers can obtain a Visa On Arrival in Bangladesh if they have all of the following:

a valid passport valid for 6 months after arrival in Bangladesh;

carrying $500 in cash or €500 in credit;

having a reservation with a hotel or tour operator in Bangladesh;

possessing a return/onward air ticket, an international train ticket, or an international bus ticket;

and arriving in Bangladesh by air, sea, or road, but not by train.

When entering Bangladesh, the Visa On Arrival fee must be paid in cash in US dollars or Euros, and the cost per person is US$51 or €51, including all taxes. This single entry Visa On Arrival is valid for 30 days and can be extended for another 30 days. Applicants may apply for a Visa On Arrival extension up to one week before the visa's expiration date, but not earlier. Visa extensions are available at the Department of Immigration and Passports in Dhaka City's West Agargaon. The issuance of a Visa On Arrival in Bangladesh is entirely at the discretion of the immigration official at the port of entry. Travelers who wish to enter Bangladesh for any reason other than tourism, investment, or business, as well as all foreigners who are not visa exempt, require a valid Bangladeshi visa. When traveling with a diplomatic passport, most diplomats can obtain a Visa On Arrival in Bangladesh.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

Employment contracts should contain the parties' names, dates, job title, job description, pay, working hours, bonuses, yearly leave, sick leave, casual leave, and any termination terms. It is also needed to specify the procedure for submitting an employment-related grievance in any employment contract. If applicable to the employer, many employment contracts contain provisions for performance evaluations.

With Rivermate being your Employer of Record (EoR) in Bangladesh, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Bangladeshi Taka (BDT)

13.Opening a subsidiary in Bangladesh

There is no information about the working hours for this country.

How to set up a subsidiary

If you decide to establish a Bangladesh subsidiary on your own, you must examine what form of structure and location is ideal for your business. A limited liability corporation (LLC) is the most prevalent kind of entity, with the parent business having limited responsibility from the subsidiary. After you've decided on a structure, you must settle on a physical site. Different areas might have their own laws, rules, and traditions. These considerations must be considered while deciding on the optimal location for your company.

The following stages are involved in the establishment of a subsidiary in Bangladesh:

1. Online verification of your identity and printing of a clearance certificate from the Registrar of Joint Stock Companies and Firms

2. Obtaining an Articles of Association and a Memorandum of Association

3. Opening a bank account in Bangladesh to get encashment certificates, which will complete your registration.

Companies often encounter difficulties while working with Bangladesh's banking system, which was not built to handle overseas corporate transactions. Obtaining an encashment certificate will complete your registration and demonstrate that you traded foreign funds for Bangladeshi Taka, the local currency. Fortunately, Bangladesh is in the midst of upgrading its financial institutions, which may make it simpler for companies wishing to grow.

Subsidiary laws

Every subsidiary structure, including an LLC, has its own set of rules. This entity requires two shareholders and two directors, who might be persons or legal bodies. They do not have to be Bangladeshi citizens. In contrast to other nations, Bangladesh has a modest minimum paid-up share capital requirement of $1. As a limited liability company, you must submit yearly audited accounts to the Bangladesh Income Tax Authority.

In Bangladesh, the average time to establish an LLC is five weeks, while it takes four weeks to establish a bank account. However, if any of the documentation is incorrect or any stage is not totally compliant, the procedure may take longer. The overall expenditures for establishing a Bangladesh subsidiary in the first year are roughly $13,000 and may range between $3,000 and $4,000 per year after that.

13. Why choose Rivermate as your Employer of Record / PEO in Bangladesh

Establishing an entity in Bangladesh to hire a team takes time, money, and effort. The labor law in Bangladesh has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Bangladesh 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 (EOR) solutions in Bangladesh 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 Bangladesh via our Employer of Record (EOR) / PEO solution.

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