Payroll and Benefits Guide - Bangladesh



Bangladeshi Taka



Employer Taxes

Not Available

Date Format


Fiscal Year

1 July – 30 Jun

Fun Facts

With a population of over 165 million people, Bangladesh is the eighth most populous country in the world

The national language of Bangladesh is Bengali, and it is one of the most widely spoken languages globally.

The Sundarbans, the largest mangrove forest in the world, is located in Bangladesh.

Bangladesh is known for its vibrant textile industry.

The Cox’s Bazar beach in Bangladesh is the longest natural sandy beach in the world

The country has a rich tradition of folk music and dance.



Employee Payroll Tax

There are no mandatory social insurance contributions for the employee.

Employer Payroll Tax

There are no mandatory social insurance contributions for the employer.


Payroll Cycle

Bangladesh allows for daily, weekly, biweekly, and monthly payroll cycles. By the end of the seventh day following the last day that the payment is due, employees must receive their salaries.

13th Salary

The payment of a 13th salary is not mandated by law.

Work Hours and Week

Sunday through Thursday, 8 hours a day, equals a 40-hour workweek in Bangladesh. The weekly maximum is 48 hours.


If it has been specified in the employment contract, additional hours can be worked. Blue-collar workers, for example, are restricted to 2 hours of daily overtime pay at a rate of 200% salary.


Paid Time Off

Although this can vary by industry, after one year of employment, employees are typically entitled to 10 days of paid annual leave.

Public Holidays

Although there are 21 national holidays in Bangladesh each year, employees are only allowed to take 11 of them off on paid time off, and the employer gets to decide which ones. Weekend public holidays are not observed.

Sick Days

Employers are required by law to provide employees with 14 days of paid sick leave each year; however, this is a one-time benefit that cannot be carried over from year to year.

Maternity Leave

Eight weeks of paid maternity leave prior to delivery and another eight weeks of paid leave following delivery are due to female employees who have worked for at least six months.

Paternity Leave

Paternity leave is not currently available in Bangladesh, but some businesses do provide a brief period of paternity leave.

Parental Leave

Other than maternity leave, there is no parental leave.


Termination Process

In general, employees with at least a year of service are entitled to 30 days of salary and one month’s notice or pay in lieu of notice.

Notice Period

The maximum notice period is 120 days; alternatively, depending on the type of employment, payment in lieu of notice may be given.

Severance Pay

Employees who have worked for at least a year are entitled to 30 days’ worth of wages as severance pay for each year of service.

Probation Period

Probation Period

For administrative staff, probation periods are typically six months long and three months long.



All visitors from outside Bangladesh must have a visa. For aspiring foreign nationals, there are numerous visa categories, including business, investor, employment, and NGO working visas. The embassy where one is applying will determine the length of stay after reviewing the necessary paperwork, which typically includes a valid passport, two passport-size photographs, an application form, and the visa fee.


15% is Bangladesh’s standard VAT rate.