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Employer of Record Bangladesh
Hire staff and expand your business in Bangladesh with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Bangladesh designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Bangladesh. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Bangladesh takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record Bangladesh
A Brief Guide to Bangladesh
Bangladesh, a culturally rich South Asian country, is known for its remarkable progress in the fields of human and social development. Located on the Bay of Bengal, its fertile landscape is marked by sprawling rivers and verdant plains, leading to the nickname “the land of rivers”.
Category | Information |
Location | South Asia, on the Bay of Bengal |
Capital City | Dhaka |
Official Languages | Bengali |
Area | 147,570 square kilometers |
Population | Approximately 170 million |
Currency | Bangladeshi taka (BDT) |
Major Cities | Dhaka, Chittagong, Khulna, Rajshahi |
GDP | Approx $352.3 billion (2022 est.) |
Major Industries | Garments and textiles, pharmaceuticals, shipbuilding, steel, electronics, energy, construction materials, chemical industries, food processing, leather goods |
Business Culture
Business Culture in Bangladesh
In Bangladesh, the traditional hierarchical structure is valued within businesses, where decisions are typically top-down and the senior members are treated with the highest regard. Meetings often start with light conversations as a way to establish rapport and trust. Patience is key, as decision-making can take some time, reflecting a preference for collective agreement over individual assertiveness.
Business attire is usually formal, and business cards are given great importance. It’s appreciated when the cards are given and received with both hands. Understanding the importance of festivals and religious practices is crucial, as they often influence business hours and transactions.
Payroll and Taxes
Payroll and Taxes in Bangladesh
Employee Taxation
In Bangladesh, income tax rates are progressive, with higher income levels subject to higher tax rates.
Gross Annual Income (BDT) | Tax Rate |
Up to 350,000 (up to 400,000 for all women and for men over the age of 65) | 0% |
350,001 – 450,000 | 5% |
450,001 – 750,000 | 10% |
750,001 – 1,150,000 | 15% |
1,150,001 – 1,650,000 | 20% |
1,650,000 + | 30% |
Employer Taxation
Employers in Armenia are not required to make any contributions based on their payroll.
Pension and Healthcare
Bangladesh Pensions
Pension provision in Bangladesh is primarily administered by the government through its various departments for civil servants, armed forces, and freedom fighters. However, it’s a defined benefit (DB) scheme, funded by the state. There is also the voluntary Old Age Allowance Scheme aimed at supporting the elderly poor.
A notable portion of the population in Bangladesh work in the informal sector and therefore are not covered by formal pension schemes. However, the government is gradually extending social safety nets and exploring avenues for introducing universal pension schemes.
Healthcare in Bangladesh
The healthcare system in Bangladesh operates under a mixed public-private model. The public sector, run by the Ministry of Health and Family Welfare, provides services from primary health centers to specialized hospitals. These services are either free or have a very minimal user fee.
The private sector, on the other hand, offers a wide range of services often concentrated in urban areas. This sector includes not-for-profit NGOs and for-profit entities, with the latter often providing high-end secondary and tertiary care services.
The quality of healthcare can vary. While the public healthcare system has made strides in improving accessibility, issues of overcrowding, long wait times, and shortages of supplies can be prevalent. The private healthcare, although usually offering a better quality of care, can be cost-prohibitive for many.
Healthcare in Bangladesh has seen significant improvements over the years, with increasing life expectancy and decreasing child and maternal mortality rates. This reflects the country’s commitment to healthcare as a fundamental human right, and ongoing efforts to achieve universal health coverage.
Employment Law
Employment Law in Bangladesh
Relevant Legislation: The central governing legislation for employment in Bangladesh is the Bangladesh Labor Act, 2006. It provides comprehensive regulations regarding working conditions, terms of services, protection of workers, and health and safety standards.
Employment Contracts: In Bangladesh, employment contracts are primarily written agreements that stipulate terms and conditions of employment such as wages, working hours, duties, and termination rules. It’s legally advised to have such a contract for clarity and protection of both parties’ interests.
Working Hours: The standard workweek in Bangladesh is 48 hours, typically spread over six days, with a maximum of 8 hours of work each day.
Leave: The law mandates annual leave, casual leave, and sick leave for workers. Employees are entitled to one day’s leave for every 18 days of work and casual and sick leave of 14 days each annually.
Overtime: Work beyond standard working hours is considered overtime and should not exceed 10 hours a day and 60 hours a week. Overtime is compensated at twice the normal wage rate.
Termination: An employee may be terminated on grounds of misconduct, physical incapacity, or prolonged illness. Employers must follow a specific procedure, including providing an opportunity to the worker to defend themselves.
Notice: For termination not related to misconduct, the employer is required to give 120 days’ notice for monthly-rated workers and 60 days’ notice for other workers.
Severance Pay: If an employee is terminated, the employer must provide severance pay equivalent to 30 days’ salary for each completed year of service.
IMMIGRATION
Work Permits in Bangladesh
Immigration in Bangladesh is primarily overseen and administered by the Department of Immigration and Passports, which falls under the jurisdiction of the Ministry of Home Affairs. The country has established a set of laws and regulations to guide its immigration system, all geared towards maintaining its social and economic order.
Foreign nationals who intend to work or establish a business in Bangladesh generally need to secure a work permit or work visa. The process for obtaining these permissions is contingent on a series of factors, such as the applicant’s skills and qualifications, and the nature of their work or business.
The most common types of work permits are categorized into two main types:
- E1 Visa: This category is designed for foreign nationals who are employed by companies or organizations in Bangladesh. The employing company typically needs to provide justification for the employment of a foreign national, stating that the required skills and expertise couldn’t be sourced from the local market. It is also usually required that the employing company be registered and operating legally within Bangladesh.
- E3 Visa: This visa is often referred to as the “expert visa” and is designated for foreign experts or consultants working on short-term assignments or projects in Bangladesh. These individuals typically have specialized skills or knowledge that is deemed beneficial to the country’s development and progress.
The application process for both visa types requires the
submission of numerous documents including a completed visa application form, a
valid passport, recent photographs, an invitation or appointment letter from
the hiring organization in Bangladesh, proof of financial means, and sometimes
even medical clearance.
In addition to the standard work visas, Bangladesh offers a Business Visa (B Visa) for foreign nationals who intend to conduct business, but not take up employment, in the country.
Public Holidays
Bangladesh Public Holidays
Holiday | Date |
Shaheed Day & International Mother Language Day | February 21 |
Independence Day | March 26 |
Bengali New Year | April 14 |
May Day | May 1 |
National Mourning Day | August 15 |
Victory Day | December 16 |
Eid ul-Fitr | Varies (3 days following the end of Ramadan) |
Eid ul-Adha | Varies (10th day of Dhu al-Hijjah in the Islamic calendar) |
Muharram (Ashura) | Varies (10th day of Muharram in the Islamic calendar) |
Milad-un-Nabi (Birth of the Prophet) | Varies (12th day of Rabi al-Awwal in the Islamic calendar) |
Wondering if expanding
in Bangladesh is right for you?
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The Benefits
Bangladesh Employer of Record Benefits
When you choose Agility EOR to expand in Bangladesh, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Bangladesh so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Bangladeshi authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Bangladesh payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.