Bangladesh Payroll & Employer Of Record (EOR) services
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BANGLADESH
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Bangladesh Payroll & Employment of Record – Employment Contracts
Types of Visas:
- Business – Business owners/CEOs wanting to set-up business in Bangladesh.
- Tourist – Individuals wanting to tour Bangladesh.
- Student – Individuals wanting to study in Bangladesh.
- Employment – Individuals wanting to work in Bangladesh.
- Investors – Individuals investing in new, existing or upcoming entities.
- NGO – Individuals working at an NGO.
Work visas may be awarded for single, double, or triple entries for those who intend to enter and depart the nation multiple times throughout the course of their visa. The cost of the visa will vary based on the category selected by the employee. Work permits are usually valid for 3 months but can be extended.
PAID TIME OFF
Annual Vacation
Employees who have worked for at least one year are normally eligible to the following yearly leave:
- One day off for every 18 days worked at a retail, commercial, industrial, or manufacturing establishment, or a road transport establishment.
- On a tea plantation, one day is allotted for every 22 days of labour.
- One day off for every eleven days of work for a newspaper employee
- Unused yearly leave can be carried forward for a maximum of 40 days for factory or road transport workers and 60 days for tea plantation, retail, commercial, or industrial personnel.
If an employee intends to take four or more days of continuous leave, he is normally entitled to be paid before leaving. Except on tea plantations, workers are normally entitled to 10 days of paid casual leave every calendar year. This leave will not be carried over.
Sick
- Employees, with the exception of newspaper employees, are normally entitled to 14 days of paid sick leave each year.
- Newspaper employees are entitled to sick leave at half pay for no less than one-eighth of their working time.
- To get sick leave, the employee must provide a medical certificate.
- Sick leave cannot be carried over from one year to the next.
Maternity
- Female workers with at least 6 months of service are eligible to 8 weeks of paid maternity leave before the delivery and 8 weeks of paid leave after the birth. Unpaid leave is normally available to women who have worked for fewer than six months or who have two other surviving children.
- Women are not permitted to work for eight weeks following the birth of their kid.
Paternity
There is no statutory paternity leave yet in Bangladesh.
Family
N/A
National Holidays
There are in total 15 paid public holidays.
Other Paid Time Off
N/A
STATUTORY EMPLOYEE BENEFITS
Unemployment
No unemployment benefits available yet in Bangladesh.
Workers Compensation
- The highest amount of compensation that may be granted to the dependents of a deceased worker in situations of workplace deaths under the Bangladesh Labour Act 2006, as amended 2013, (‘BLA’) is Taka 1,00,000. (one lakh).
- The money must be submitted at the Labour Court by the employer in the event of death. In such circumstances, the pay-outs are rather quick, and bereaved family members of the dead worker may get them within a year or two. If a worker is permanently disabled as a consequence of a working injury, compensation will be granted in the amount of Taka 1,25,000. (one lakh twenty five thousand).
- Workers who are temporarily disabled may be compensated for the duration of their disability or one year, whichever is less.
- Thus, the compensation payable for the first two months will be the whole monthly wage, the compensation payable for the following two months will equal two-thirds of the monthly wage, and the compensation due for the remaining months will be half of the monthly wage.
Social Security
- Social pension for the elderly (income-tested): Age 65 (men) or 62 (women), and not receiving any other government or nongovernment benefits. The pension is only available to one member of a family. The yearly income of the recipient shall not exceed 10,000 taka. Benefit payments are prioritized by a designated committee, with the most vulnerable and women receiving preference (of those selected, at least half must be women). Social security disability pension (income-tested): Must be at least 6 years old, have a sensory, mental, verbal, or physical handicap, and not be receiving any other government or nongovernment assistance.
- The yearly income of the recipient shall not exceed 36,000 taka. Benefit payments are prioritized by a designated committee, with priority given to the most vulnerable. Survivor social pension (income tested): Paid to widows and women who have been divorced or abandoned by their spouses and are not receiving any other government or nongovernment benefits.
Retirement
Within the following year, the government plans to implement a pension program for all people over the age of 60. Except for the governmental sector, there are no pension options in Bangladesh. In certain private sector and autonomous entities, there is the option of a provident fund and gratuity. Meanwhile, as part of its social safety net policy, the government distributes an old age allowance.
Health
On average, Bangladeshi people must pay 63.3 percent of the overall cost, with the remainder covered by the government. This system places a tremendous financial strain on low-income families, often compelling them to postpone treatment or incur debt. The government must expand healthcare funds to alleviate this strain.
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
Unclear information regarding private workers compensation being available in Bangladesh.
Retirement
There are private retirement schemes available in Bangladesh.
Health
Private healthcare is available in Bangladesh.
Insurance
Private life insurance is available in Bangladesh.
PERSONAL INCOME TAX
Tax Year
Bangladesh Payroll – Personal Income Tax
The tax year in Bangladesh is a calendar year from 1st July to 30th June.
Tax Tables
Taxable Income | Rates of Taxes |
0 – 300 000 | 0% |
300 000 – 400 000 | 5% |
400 000 – 700 000 | 10% |
700 000 – 1 100 000 | 15% |
1 100 000 – 1 600 000 | 20% |
1 600 000 + | 25% |
Taxation Method
Income tax is charged on citizens at progressive tax rates ranging from 10% to 30%, while non-residents (excluding Bangladeshi non-residents) are taxed at a single rate of 30%.
Double Taxation
Bangladesh has multiple double tax agreements (DTA) with other countries.
Residence Requirements
An individual is considered a resident of Bangladesh if he or she spends 182 days or more in any income year, or 90 days or more in any income year if he or she had previously spent more than 365 days in Bangladesh in the four prior years.
Payroll Calendars
- There are no predetermined dates on which employees must be paid.
- Weekly, Bi-weekly, fortnightly and monthly payrolls are acceptable.
Rebates & Tax Credits
If your yearly income is less than Tk15 lakh, you will be excluded from paying 15% tax on your entire investment and contribution. If the amount surpasses Tk 15 lakh, a 10% tax exemption would be given.
Health Insurance
Bangladesh has stated its intention to achieve universal health coverage (UHC) by 2032.
Unemployment
No unemployment benefits available yet in Bangladesh.
Social Security
- Social pension for the elderly (income-tested): Age 65 (men) or 62 (women), and not receiving any other government or nongovernment benefits. The pension is only available to one member of a family. The yearly income of the recipient shall not exceed 10,000 taka. Benefit payments are prioritized by a designated committee, with the most vulnerable and women receiving preference (of those selected, at least half must be women). Social security disability pension (income-tested): Must be at least 6 years old, have a sensory, mental, verbal, or physical handicap, and not be receiving any other government or nongovernment assistance.
- The yearly income of the recipient shall not exceed 36,000 taka. Benefit payments are prioritized by a designated committee, with priority given to the most vulnerable. Survivor social pension (income tested): Paid to widows and women who have been divorced or abandoned by their spouses and are not receiving any other government or nongovernment benefits.
PAYROLL ELEMENTS
Income
Payroll Elements in Bangladesh
Salaries, wages, and allowances received by working persons.
Bonuses
Employees with at least one year of service are eligible for two festival bonuses per year. Each bonus should not exceed the base wage.
Allowances
- Housing Allowance
- Medical Allowance
Benefits in Kind
Benefits in kind are simple payments in kind and company subsidies offered for workers’ personal or social needs. Also, depending on its purpose, money provided to employees may be considered a kind benefit and may be excluded from tax and premium contributions.
Investment Income
Capital gains are taxed separately at a rate of 15% in general.
Retirement Funding
Within the following year, the government plans to implement a pension program for all people over the age of 60. Except for the governmental sector, there are no pension options in Bangladesh. In certain private sector and autonomous entities, there is the option of a provident fund and gratuity. Meanwhile, as part of its social safety net policy, the government distributes an old age allowance.
Health Insurance
Bangladesh has stated its intention to achieve universal health coverage (UHC) by 2032.
Risk Insurance
N/A
Taxable Income
Salaries, wages, and allowances received by working persons.
Allowable Deductions
N/A
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
Bangladesh Payroll Taxes and Employer Contributions
The country has a progressive tax system with rates ranging from 10% to 30%, although there is no social security tax. Employers must pay a corporation tax rate of 35% if they are a non-listed business or a tax rate of 25% if they are a publicly traded entity.
Unemployment
No unemployment benefits available yet in Bangladesh.
Social Security
Social pension for the elderly (income-tested): Age 65 (men) or 62 (women), and not receiving any other government or nongovernment benefits. The pension is only available to one member of a family. The yearly income of the recipient shall not exceed 10,000 taka. Benefit payments are prioritized by a designated committee, with the most vulnerable and women receiving preference (of those selected, at least half must be women). Social security disability pension (income-tested): Must be at least 6 years old, have a sensory, mental, verbal, or physical handicap, and not be receiving any other government or nongovernment assistance.
The yearly income of the recipient shall not exceed 36,000 taka. Benefit payments are prioritized by a designated committee, with priority given to the most vulnerable. Survivor social pension (income tested):
- Paid to widows and women who have been divorced or abandoned by their spouses and are not receiving any other government or nongovernment benefits.
Workers Compensation
- The highest amount of compensation that may be granted to the dependents of a deceased worker in situations of workplace deaths under the Bangladesh Labour Act 2006, as amended 2013, (‘BLA’) is Taka 1,00,000. (one lakh).
- The money must be submitted at the Labour Court by the employer in the event of death. In such circumstances, the pay-outs are rather quick, and bereaved family members of the dead worker may get them within a year or two. If a worker is permanently disabled as a consequence of a working injury, compensation will be granted in the amount of Taka 1,25,000. (one lakh twenty five thousand).
- Workers who are temporarily disabled may be compensated for the duration of their disability or one year, whichever is less.
- Thus, the compensation payable for the first two months will be the whole monthly wage, the compensation payable for the following two months will equal two-thirds of the monthly wage, and the compensation due for the remaining months will be half of the monthly wage.
ADMINISTRATION
Income
The country has a progressive tax system with rates ranging from 10% to 30%, although there is no social security tax. Employers must pay a corporation tax rate of 35% if they are a non-listed business or a tax rate of 25% if they are a publicly traded entity.
Payroll Taxes
The country has a progressive tax system with rates ranging from 10% to 30%, although there is no social security tax. Employers must pay a corporation tax rate of 35% if they are a non-listed business or a tax rate of 25% if they are a publicly traded entity.
Unemployment
No unemployment benefits available yet in Bangladesh.
Social Security
- Social pension for the elderly (income-tested): Age 65 (men) or 62 (women), and not receiving any other government or nongovernment benefits. The pension is only available to one member of a family. The yearly income of the recipient shall not exceed 10,000 taka. Benefit payments are prioritized by a designated committee, with the most vulnerable and women receiving preference (of those selected, at least half must be women). Social security disability pension (income-tested): Must be at least 6 years old, have a sensory, mental, verbal, or physical handicap, and not be receiving any other government or nongovernment assistance.
- The yearly income of the recipient shall not exceed 36,000 taka. Benefit payments are prioritized by a designated committee, with priority given to the most vulnerable. Survivor social pension (income tested): Paid to widows and women who have been divorced or abandoned by their spouses and are not receiving any other government or nongovernment benefits.
Workers Compensation
- The highest amount of compensation that may be granted to the dependents of a deceased worker in situations of workplace deaths under the Bangladesh Labour Act 2006, as amended 2013, (‘BLA’) is Taka 1,00,000. (one lakh).
- The money must be submitted at the Labour Court by the employer in the event of death. In such circumstances, the pay-outs are rather quick, and bereaved family members of the dead worker may get them within a year or two. If a worker is permanently disabled as a consequence of a working injury, compensation will be granted in the amount of Taka 1,25,000. (one lakh twenty five thousand).
- Workers who are temporarily disabled may be compensated for the duration of their disability or one year, whichever is less.
- Thus, the compensation payable for the first two months will be the whole monthly wage, the compensation payable for the following two months will equal two-thirds of the monthly wage, and the compensation due for the remaining months will be half of the monthly wage.
Statutory Benefits
Statutory benefits in Bangladesh include time off for the 15 national holidays, as well as one day off for every 18 days worked.
Employee Benefits
All employees are entitled to time off, including 15 paid public holiday days.
LEGISLATION
Bangladesh Labour Act 2006
STATUTORY BODIES
National Board of Revenue Bangladesh.
