Country Guide - Bangladesh

Local Expertise

Country-Specific Solutions

Onboarding

Efficient onboarding is critical in Bangladesh to ensure compliance and employee satisfaction.

Employment contracts must be written in Bengali.
Offer letters must detail compensation, job role, and benefits.
Probation period:Typically 6 months (extendable to 1 year).
Background checks are recommended but not mandatory.
Employee handbooks must outline company policies and local laws.

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Payroll Services

Payroll management in Bangladesh requires adherence to strict laws and accurate calculations.

Payment frequency: Monthly, typically within 7 working days of the following month.
Minimum wage: Varies by industry; e.g., Tk 8,000/month in manufacturing.
Mandatory deductions: Income tax and employee provident fund (if applicable).
Payments via bank transfer are highly recommended.
Accurate record-keeping is required for audits.

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Taxes

Bangladesh imposes various taxes on employees andemployers, managed by the National Board of Revenue (NBR).

For Employees:
Income Tax: Progressive rates up to 25%.
Tax-free income threshold: Tk 3,50,000 per annum.
Tax is deducted at source by employers.
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For Employers:
‍Corporate Tax: 20-45%depending on the sector.
VAT: Standard rate is 15%.
Withholding Tax: 10-15% for specific payments
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Leave

Leave entitlements in Bangladesh are governed bylabour laws to ensure employee welfare.

Annual Leave: 10 daysafter 1 year of service.
Sick Leave: 14 days withfull pay.
Casual Leave: 10 days peryear.
Maternity Leave: 16 weeks(8 weeks pre- and post-delivery).
Public Holidays: 11 days annually/

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Social Security Management

Social security is still evolving in Bangladesh, withfew mandatory contributions.

Provident Fund: Employer contribution of 6-12% (if applicable).
Gratuity: Paid after 5years of service (based on the last drawn salary).
Employees’ benefits: Limited unemployment or disability support.

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Termination

Termination laws in Bangladesh ensure fairness andtransparency for employees and employers.

For Employees:
Notice Period: 30 days for resignation or termination.
Severance Pay: Mandatory for redundancies after 1 year of service.
Unfair Dismissal: Legal action can be pursued if wrongful termination occurs

For Employers:
Valid Grounds: Misconduct, redundancy, or performance issues.
Final Pay: Includes all unpaid wages, leave encashment, and gratuity.
Documentation: Written notice and termination letters are required.

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Bangladesh Market Insight

GDP Growth

GDP growth: 6.3% in 2024(projected by IMF).

Key Sectors

Key sectors: Textiles,agriculture, ICT, and energy.

Young Workforce

65% of the population is under 35 years old.

FAQ

Expand into Bangladesh with Innovare

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Country-Specific Solutions

Bangladesh Market Insight

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Expand into Bangladesh with Innovare

Expand into Japan with Innovare

Innovare Bangladesh

Country-Specific Solutions

Bangladesh Market Insight

Comprehensive Solutions, Tailored for You

You've got questions, and we have the answers.

1) What documents should the client have ready to avail EOR services from Innovare in Pakistan?

2) Do you assist clients with company incorporation in Pakistan? If so, to what extent do you provide support?

3) What does the process of getting started with Innovare for EOR services in Pakistan actually entail?

4) Does Innovare also support businesses with other aspects of setting up a business, such as becoming a member of a chamber of commerce or taking advantage of particular government schemes or grants in Pakistan? If yes, to what extent does that support extend?

5) How does Innovare assist clients with visa and work permit requirements in Pakistan? What documents do you require from clients to facilitate the visa application process?

Bangladesh Market Insight