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Global Expansion Guide

Bangladesh

Manage and pay your employees easily with BIPO in Bangladesh and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Bangladeshi Taka (BDT)

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Language

Bengali

employment guide_capital

Capital

Dhaka

Employer of Record Bangladesh

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Bangladesh

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Employer of Record Bangladesh

Embark on your business expansion in Bangladesh with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Bangladeshi market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This guide was last updated on 17 December 2025. The content in this guide is current as of this date and based on common business practices.

Employment Contract

  • In Bangladesh, employers are required to issue an appointment letter to every worker. Each worker must also be provided with an identification card bearing their photograph.

  • Employers must, at their own expense, maintain a service book for each worker to record employment-related information

    • Workers with previous employment experience are required to submit their original service book.
    • Where no original service book exists, the employer must issue a new one. The worker may retain a copy at their own expense.
    • Upon termination of employment, the employer must return the service book to the worker.
    • In the event of loss, the employer must issue a duplicate service book at the worker’s expense.
    • These requirements do not apply to apprentices, substitute workers, or temporary workers.

  • The service book must contain at least the following information:

    1. Worker’s name; parents’ names; spouse’s name (if applicable); and residential address;
    2. Date of birth;
    3. Identification details;
    4. Job title;
    5. Department or section;
    6. Employee identification or card number;
    7. Previous employment details, including the names and addresses of former employers;
    8. Period of employment;
    9. Position or designation held;
    10. Salary and allowances (if applicable);
    11. Leave records;
    12. Records of work performance and conduct.
  • The employer must record the relevant information in the service book at the commencement of employment and update it throughout the employment period. All entries must be confirmed by the signatures of both the employer and the worker.

Statutory Contributions

Type of Social Insurance Employee Contribution Employer Contribution
Provident Fund 7% – 8% 7% – 8%
Workers’ Participation Fund 0% 80% × 5% × Net profit of the preceding year
Workers’ Welfare Fund 0% 10% × 5% × Net profit of the preceding year
Workers’ Welfare Foundation Fund 0% 10% × 5% × Net profit of the preceding year

Notes:

  • A provident fund must be established where at least three-quarters of the employees of an establishment submit a written request.

  • The Workers’ Participation Fund, Workers’ Welfare Fund, and Workers’ Welfare Foundation Fund apply to enterprises that meet any one of the following criteria:

    • Paid-up capital of not less than BDT 10 million; or
    • Fixed assets of not less than BDT 20 million.

Minimum Wage

  • As of 2025, the national minimum wage in Bangladesh is BDT 12,500 per month.
  • However, minimum wage levels may vary by industry, depending on the nature of the work and labour intensity.
  • Industry-specific minimum wages are set and published by the Minimum Wage Board on an industry-by-industry basis.

Public Holidays

The public holidays listed below are national public holidays observed across Bangladesh. Please refer to official government announcements for the latest updates.

  • Shab e-Barat
  • Shaheed Day and International Mother Language Day
  • Shab-e-Qadr
  • Jumatul Bidah
  • Eid ul-Fitr (5 Days)
  • Independence and National Day
  • Pphela Baishakh
  • May Day
  • Buddha Purnima
  • Eid-ul-Azha (6 Days)
  • Ashura
  • July Mass Uprising Day
  • Eid e-Milad-un-Nabi
  • Janmashtami
  • Durga Puja
  • Victory Day of Bangladesh
  • Christmas Day

Working Hours

Normal Working Hours

Daily Weekly
8 Hours 48 Hours

  • Daily Rest:

    • Where working time exceeds five hours, employees are entitled to a 30-minute break for rest or meals.
    • Where working time exceeds six hours, a one-hour break for rest or meals must be provided.
    • Where working time exceeds eight hours, a one-hour break, or two breaks of 30 minutes each, must be provided for rest or meals.

  • Weekly Rest:

    • Shops, commercial establishments, and industrial units: One and a half days per week.
    • Factories: One day per week.
    • Road transport units: At least 24 consecutive hours per week.
  • Overtime Compensation: Overtime must be paid at twice the combined amount of the basic wage, cost of living allowance, and temporary wage.
  • Exemptions from Overtime Compensation: For piece-rate workers, the employer may negotiate with workers’ representatives to establish time-based wages that approximate the workers’ average earnings.

Leave

Annual Leave

  • Applicable Employer Type: Single employer.

  • Eligibility: Adult and adolescent workers who have completed at least one year of continuous service with the same employer.

    • Continuous service excludes statutory holidays, paid leave, sick leave, maternity leave (up to 16 weeks), work stoppages, strikes, or illegal work stoppages.
    • Unused annual leave may be carried forward for up to 12 months.

  • Entitlement:

    • Adult Workers:

      • Shops, commercial establishments, industrial establishments, factories, and road transport establishments: One day for every 18 days worked.
      • Tea plantations: One day for every 22 days worked.
      • Newspaper establishments: One day for every 11 days worked.

    • Adolescent Workers

      • Shops, commercial, or industrial establishments: One day for every 14 days worked.
      • Factories: One day for every 15 days worked.
      • Tea plantations: One day for every 18 days worked.
  • Annual Leave Pay: Annual leave must be granted with full pay.
  • Unused Annual Leave: Where an employee leaves employment without taking accrued annual leave, the employer must pay full wages in lieu of the unused leave.

Sick Leave

  • Eligibility: Entitlement to sick leave varies by industry. Unused sick leave cannot be carried forward to the following year.

  • Duration and Pay:

    • Newspaper workers: Sick leave of not less than one-eighteenth of the period of service, paid at half pay.
    • Non-newspaper workers: Fourteen days per year, paid at full pay.

Maternity Leave

  • Eligibility: Female employees who are pregnant or have given birth, provided they have completed at least six months of continuous service prior to delivery.

    • No maternity benefit is payable where, at the time of delivery, the employee has two or more surviving children.
  • Duration: 120 days.
  • Pay: Maternity leave must be granted with full pay.

Other Leave Types

Paid Casual Leave

  • Applicable to all workers except tea plantation workers.
  • Entitlement: Ten days per year.
  • Unused casual leave cannot be carried forward to the following year.
  • Casual leave is granted with full pay.

Termination and Compensation

Termination by the Employer

  • Written Notice to Permanent Employees:

    • Monthly-rated employees: At least 120 days’ notice.
    • Other employees: At least 60 days’ notice.

  • Written Notice to Temporary Employees:

    • Monthly-rated employees: At least 30 days’ notice.
    • Other employees: At least 14 days’ notice.
  • Notice in Lieu of Payment: The employer may, instead of providing notice, pay wages in lieu of the notice period.
  • Compensation for Permanent Employees: When terminating a permanent employee, the employer must pay compensation at the rate of 30 days’ wages for each completed year of service, or the gratuity payable, whichever is higher. This compensation is without prejudice to any other benefits to which the employee is entitled.

Termination by the Employee

  • Written Notice

    • Permanent employees: At least 60 days’ notice to the employer.

    • Temporary employees:

      • Monthly-rated employees: At least 30 days’ notice.
      • Other employees: At least 14 days’ notice.
  • Notice in Lieu of Payment: The employee may, instead of giving notice, pay wages in lieu of the notice period.

  • Compensation upon Resignation of Permanent Employees:

    • Service of 5–10 years: 14 days’ wages for each completed year of service.
    • Service of 10 years or more: 30 days’ wages for each completed year of service.
    • Or the gratuity payable, whichever is higher.
    • Such compensation is without prejudice to any other benefits to which the employee is entitled.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation:
    The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management:
    We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Bangladeshi regulations.
  • Contributions and Taxes:
    Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours:
    We guarantee that your employment practices adhere to Bangladesh’s minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management:
    Implement and manage leave policies that comply with Bangladeshi laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance:
    Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services:
    Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Bangladesh

Unlock your growth potential with BIPO’s Employer of Record service in Bangladesh. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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