How To Hire And Pay Employees In Bangladesh

Bangladesh has a rapidly growing economy, offers a strategic location and provides a younger but skilled workforce. Bangladesh is known to be a great location for outsourcing talent. The workforce is large and relatively inexpensive, making it easy to find employees. The cost of living is low, which can help keep operating costs down.

However, the infrastructure in Bangladesh is not well-developed which can make doing business difficult. Corruption is still a problem here, which can lead to higher costs and delays.

Employees who have worked for at least one year are generally entitled to annual leave according to the following schedule: 

• 1 day for every 18 days of work in a shop, commercial, industrial establishment, factory, or road transport establishment
• 1 day for every 22 days of work on a tea plantation
• 1 day for every 11 days of work as a newspaper worker 

Bangladesh has 14 public holidays 

Clerical workers are entitled to a maximum probation period of six months; other workers are entitled to a three-month probation period. 

Employees made redundant after at least one year of service are generally entitled to one month’s notice or pay in lieu of notice, and 30 days of pay for every year served. Employees who have been convicted of a criminal offense or found guilty of misconduct are not owed notice or severance. Termination of employment in Bangladesh for other reasons generally requires the employer to provide 120 days’ written notice for monthly salaried workers and 60 days for other workers, or equivalent payment in lieu of notice.

Restrictive covenants are invalid and unenforceable in Bangladesh in accordance with section 27 of the Contract Act 1872, which states that every agreement which restrains a person from exercising a lawful profession, trade or business of any kind is void. 

It is legally required to put a written employment contract in place in Bangladesh, in the local language, which lays out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Bangladesh should always state the salary and any compensation amounts in Bangladeshi Taka rather than a foreign currency. 

Pregnant employees who have worked for at least 6 months are entitled to 8 weeks of paid maternity leave before the birth and 8 weeks of paid leave after the birth. Those who have worked less than 6 months or who already have two other surviving children are generally eligible for unpaid leave. Women are forbidden to work for 8 weeks after the birth of the child. There is no statutory paternity leave in Bangladesh. 

Employees, other than newspaper workers, are generally entitled to annual paid sick leave of 14 days. Newspaper workers are entitled to sick leave at half-pay for not less than 1/18th of the period of employment. Employees must present a medical certificate in order to receive sick leave.

In Bangladesh, social security includes old age pension, disability pension, survivor allowance, cash sickness and maternity benefits, medical benefits, death benefit, work injury and death compensation, and disability benefits 

Employers, employees, and self-employed individuals are not required to make any contributions, as the government covers these expenses. 

Bangladesh has a public / private health care system. NGOs and international organisations provide much of the rural care. 

The minimum wage in Bangladesh is 1,500 Taka per month for all economic sectors not covered by industry-specific wages, which are often higher.

In Bangladesh, the payroll cycle can be daily, weekly, bi-weekly, or monthly. By law, employees' salaries must be paid by the end of the seventh day after the final day on which the payment is due. 

There is no Social Security or Social Contribution Rates in Bangladesh.