Hire in Bangladesh
How to Hire in Bangladesh? – An Ultimate Guide
Your go-to professional encyclopedia for insights into successful hiring in Bangladesh. From talent overview, labor law, and tax regulations to compliance, leave policy, terminations, and beyond, find everything you need to ensure a seamless hiring process. Making employment in Bangladesh easy and efficient.
Bangladesh at a Glance
Currency: Taka (৳) (BDT)
Population: 169.83 Million (8th in world population)
Payroll frequency: Monthly
Timezone: UTC+6 (BST)
Cost of living rank: 190th out of 197
GDP per capita: $2470
Bangladesh: A hub of talent and potential
With a diverse and skilled workforce, the country offers a rich pool of talent across various industries. From information technology to textiles, manufacturing, and beyond, Bangladesh’s workforce exhibits exceptional potential and dedication. The nation’s growing economy, coupled with a favorable business environment, has attracted both local and international investments. As businesses explore the vast opportunities that Bangladesh offers, they can tap into its abundant talent, fostering innovation and growth for a promising future.
Why should companies hire from Bangladesh?
1. Versatile and multilingual
- Openness to diverse cultures enables seamless collaboration with international teams and clients
- Possess multilingual skills, allowing them to bridge communication gaps and cater to a broader customer base
2. Outstanding problem-solvers
- Exhibit outstanding problem-solving abilities
- Growing up in a dynamic environment, they have honed their skills in finding innovative solutions to complex challenges
- Their adaptability makes them invaluable assets, creatively tackling business obstacles with efficiency
3. Dedicated workforce
- Recognized for their strong work ethics and unwavering dedication to their roles
- Deep sense of loyalty towards their employers and they contribute wholeheartedly to the success of the organization
- Their commitment translates into long-term partnerships, reducing turnover rates and fostering a stable and motivated workforce
4. Tech-savvy entrepreneurs
- The tech-savvy nature helps businesses stay at the forefront of technological advancements
- Their familiarity with digital tools and platforms makes them adept at leveraging technology to drive business growth
- Possess an entrepreneurial spirit, bringing a proactive approach to problem-solving and driving innovation within the organization
Finding and hiring top talent in Bangladesh
Sourcing the right candidates
In Bangladesh, professional networking and online job and career sites are the primary channels for recruitment, as is the case in many other countries.
However, if your company is new to the Bangladeshi market, and wants to hire employees in Bangladesh, building a network from scratch may pose a challenge. In such cases, collaborating with a global Professional Employer Organization (PEO) or an Employer of Record (EOR) that already has an established presence in the country can provide access to a pool of qualified candidates.
Hiring process in Bangladesh
Although there is no prescribed method for hiring employees in Bangladesh, it is a legal requirement to draft an employment contract that outlines compensation, benefits, and termination provisions. Ensure that all salary and compensation amounts are stated in Bangladeshi Taka, the local currency.
While social discrimination persists in Bangladesh, it is important to note that the country’s constitution ensures equality for all its citizens. Discrimination against protected characteristics like religion, race, sex, caste, and place of birth is prohibited. Ensuring compliance necessitates careful language in staffing and recruitment, spanning job postings, interviews, and interactions with potential employees. Avoiding explicit mention of any protected characteristics is advisable.
- Probation period for clerical workers: 6 months.
- Probation period for other workers: 3 months.
- Should the initial 3 months not suffice to assess skilled workers’ performance, their probation can be extended by 3 months.
Leave policies in Bangladesh
1. Casual leaves
- Each worker is entitled to ten days of casual leave with full wages in a calendar year.
- Casual leave cannot be accumulated or carried over to the following year.
2. Maternity leaves
- No employer shall knowingly employ a woman in his establishment during the eight weeks immediately following the day of her delivery.
- Female employees with a minimum of six months’ tenure are eligible for eight weeks’ paid maternity leave before childbirth and an additional eight weeks after.
- In situations where a female employee has worked for less than six months or already has two surviving children, unpaid leave becomes an option. Additionally, there is a mandatory eight-week post-birth period during which women are not permitted to work, ensuring their health and recovery.
3. Paternity leaves
While maternity leave is established in Bangladesh, there is currently no statutory provision for paternity leave. Recognizing the importance of fatherhood and the equal role of parents in childcare, the conversation around implementing paternity leave is gaining momentum, advocating for a more inclusive and balanced approach to parental support.
4. Sick leaves
- Workers, except newspaper workers, receive 14 days full-wage sick leave annually.
- Newspaper workers get half-wage sick leave for 1/18 of service.
- Certified registered medical practitioner’s approval is required for sick leave, either appointed by the employer or otherwise.
- There’s no sick leave accumulation or carry-forward to the next year.
1. Daily hours
- The standard daily working hours for adult workers in an establishment shall not exceed eight hours.
- However, subject to section 108, adult workers may work up to ten hours a day in certain establishments.
2. Interval time for rest or meals
No worker within any establishment shall be required to work;
a) for more than six hours on any day unless granted at least one hour of rest or meal interval.
b) beyond five hours in any one day unless granted at least half an hour of rest or meal interval.
c) over eight hours unless provided with an interval as mentioned in clause (a) or two intervals as mentioned in clause (b) for rest or meal during that day.
3. Weekly hours
- The standard workweek for adult workers in an establishment is limited to 48 hours.
- Exceptions to the 48-hour workweek are allowed under section 108 of the law.
- Adult workers can work up to 60 hours per week, with an average of 56 hours per week over the year.
- For workers in road transport services, the maximum allowable overtime work in a year is 150 hours.
4. Limitation of hours of work for women
No woman shall, without her consent, be allowed to work in an establishment between the hours of 10.00 PM and 6.00 AM
- Bangladesh has a calendar with twenty national public holidays, celebrating its rich cultural heritage
- Language Movement Day, on February 21st, honors language martyrs who fought for the recognition of Bengali
- Sheikh Mujibur Rahman’s birth anniversary on March 17th pays tribute to the Father of the Nation
- Independence Day on March 26th marks the nation’s liberation from colonial rule
- Pôhela Boishakh, the Bengali New Year, brings joy and cultural unity on April 14th
- Labor Day on May 1st celebrates workers’ achievements and rights worldwide
- Vesak, on May 6th, commemorates Gautama Buddha’s birth, enlightenment, and passing way
- Eid al-Fitr, following the lunar calendar, unites communities in joyful celebrations
- National Mourning Day on August 15th remembers the assassination of Sheikh Mujibur Rahman and his family
- Dussehra on October 26th signifies the triumph of good over evil
- Christmas Day on December 25th adds joy to the holiday season
Check out the list of official public holidays in Bangladesh
As per Minimum Wage Organization data, the minimum wage in Bangladesh is BDT 1500 per month for all economic sectors not covered by industry-specific wages. However, in the garment industry, the minimum wage is 5,300 taka per month. The National Minimum Wage Board sets the minimum wage nationally every five years through a tripartite forum, industry by industry.
13th-month pay or bonuses
Workers with a minimum of one year of service are eligible to receive two festival bonuses annually, and each bonus should not exceed their basic salary. To further support employees’ financial well-being, Bangladesh mandates the provision of a 13th-month pay. This additional payment, often given during festive seasons, allows employees to enjoy extra income and meet their financial obligations.
Individual tax information
1. Residency determination
For tax purposes, an individual qualifies as a resident by being in Bangladesh for over 182 days in the income year. Alternatively, if an individual is present in Bangladesh for at least 365 days within the preceding four years and spends a minimum of 90 days in Bangladesh during the income year, they also gain resident status.
2. Taxable income categories
Taxable income is classified into different “heads” to accurately account for various sources of income. These heads include income from employment, income from the exercise of a profession, income from property, agriculture income, interest on securities, capital gains, and other forms of income.
3. Progressive tax rates for residents
Residents of Bangladesh are subject to progressive income tax rates. These rates vary from 0% for income up to BDT 300,000, gradually increasing to a maximum rate of 30% for income exceeding BDT 1,600,000. This progressive system ensures that individuals with higher incomes contribute proportionally more to the country’s tax revenue.
4. Flat tax rate for non-residents
Nonresidents, on the other hand, are taxed at a flat rate of 30% on their Bangladesh source income. This simplified approach streamlines the tax process for nonresidents and ensures consistency in tax obligations.
5. Capital gains tax
Capital gains, which fall under one of the heads of income, are generally subject to the applicable personal income tax rates. This aligns with fairness by taxing capital gains alongside other income sources using progressive rates.
6. Taxable income and applicable rates
The income tax rates in Bangladesh are structured to reflect different income brackets. As you hire remote employees in Bangladesh, it’s important to understand the tax structure of Bangladesh. Here is an overview of the taxable income and the corresponding tax rates:-
|Annual gross salary||Tax percentage|
|Up to BDT 300,000||Nil|
|BDT 300,001 to BDT 400,000||5%|
|BDT 400,001 to BDT 700,000||10%|
|BDT 700,001 to BDT 1,100,000||15%|
|BDT 1,100,001 to BDT 1,600,000||20%|
|Over BDT 1,600,000||25%|
Estimated payroll costs for employers in Bangladesh
Bangladesh doesn’t have any legally required payroll contributions however it is recommended to offer private health insurance.
Global Squirrels do not offer bonus plans and gratuities. Amounts equivalent to these benefits will typically be accommodated as part of the employee’s regular pay.
|Employer health insurance contribution||50% of total health insurance cost for employee and his/her dependents.|
|Gratuity pay (Paid to employees only after they leave the company (optional))||30 days of gross pay for every year. Approximately 8.2 % of employee gross salary. 45 days of gross pay after 10 years.|
|Bonus plan (optional)||Paid twice a year after one year of employment. The total bonus paid is equivalent to the employee’s two-month salary.|
|Total||*5% of the employee’s gross pay|
Employee termination process in Bangladesh
1. Termination for health reasons
In situations where an employee faces physical or mental incapacity or continued ill-health, certified by a medical practitioner, termination may be considered. The welfare of the employee is paramount in such cases.
2. Retrenchment and notice period
For retrenched employees with at least one year of service, the employment laws of Bangladesh recognize the importance of providing adequate notice. Employees typically receive one month’s notice or pay in lieu, plus 30 days’ pay per year served. This provision allows employees to prepare for the transition and seek alternative opportunities.
3. Exceptions for misconduct and criminal offenses
Employees convicted of a criminal offense or found guilty of misconduct aren’t eligible for notice or severance payments. This provision maintains a balance between employee rights and accountability within the workplace.
4. Written notice or pay in lieu
In situations not involving retrenchment, misconduct, or criminal offenses, employers must furnish employees with written notice. The notice period varies depending on the type of employment. For monthly-rated workers, the notice period is generally 120 days, while for other workers, it is 60 days. Alternatively, employers may provide pay in lieu of the notice period.
5. Severance entitlement
Severance pay is a crucial consideration when terminating an employee’s service. If an employee has served for at least one year, they are entitled to receive 30 days of wages for each year of service. This provision acknowledges the employee’s contribution to the organization and aims to provide financial support during the transition period.
Bangladesh Top 10 high-paying jobs and salary
Below is the list of the top 10 high-paying jobs in Bangladesh, as provided by Glassdoor.com. Employers can find valuable insights into the job market rates for professionals in the country here.
|Job Title||Avg. Yearly Salary (in BDT)||Avg. Yearly Salary (in USD)|
Hiring employees in Bangladesh – Simple steps to follow
- Register company name
- Appoint directors and shareholders
- Obtain necessary certificates
- Open a local bank account
- Set up a payroll system
- Fulfill financial reporting obligations
Hire employees in Bangladesh with Global Squirrels
Still not confident? We at Global Squirrels offers the best global hiring and payroll services.
If this whole process makes you feel hectic, which indeed, we are here to help you. From finding the right talent to automating the payroll process, let us cover you comprehensively. Subscribe to Global Squirrels to find your superstar team in the land of Bengals.