Bangladesh Employment Guide
Bangladesh Employment Guide
Bangladesh, located in South Asia with a population exceeding 170 million, has a rapidly growing economy driven by textiles, agriculture, manufacturing, and information technology. Dhaka serves as the political and economic center. Employment in Bangladesh is regulated by the Labor Act, which governs employment contracts, working hours, minimum wage, overtime, social security, and employee benefits. The country has a mix of formal and informal employment, with labor protections focused on factory and service sector workers. Employers must comply with local labor laws to ensure legal and fair employment practices.
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Currency
Bangladeshi Taka (BDT)
Capital
Dhaka
Official language
Bengali
Salary Cycle
Monthly
Our Employment Guide in Bangladesh
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Minimum Wage Regulations in Bangladesh
Bangladesh's labor legislation does not establish a universal minimum wage requirement. Instead, wage floors are typically determined through sector-specific wage boards or individual employment contracts.
Personal Income Tax Structure
| Tax Rate | Annual Taxable Income (BDT) |
|---|---|
| 0% | Up to 350,000 |
| 5% | 350,001 - 450,000 |
| 10% | 450,001 - 850,000 |
| 15% | 850,001 - 1,350,000 |
| 20% | 1,350,001 - 1,850,000 |
| 25% | 1,850,001 - 3,850,000 |
| 30% | Above 3,850,000 |
Mandatory Employment Costs
Annual statutory benefits include:
- 13th Month Salary: Equivalent to one month's pay, calculated based on average monthly earnings
- Festival Bonus: Approximately 315.52 BDT per employee annually
- Leave Encashment: One-third of monthly salary or equivalent to one-third of leave days
- Compulsory Life Insurance: Nominal premium of 5.56 BDT
Discretionary Benefits
Optional components that employers may consider:
- Leave Monetization: Employees can convert up to 10 days of leave into cash compensation
- Childcare Support: Working mothers with children under 5 years may receive up to 290.98 BDT monthly per child
Working Hours and Overtime Provisions
The standard workweek spans Sunday through Thursday, with maximum regular working hours capped at 8 hours daily or 40 hours weekly. Overtime compensation follows statutory requirements for hours exceeding these limits.
Practical Implementation Example
Companies like SailGlobal typically structure compensation packages that exceed statutory minimums, incorporating performance bonuses and professional development allowances to attract talent in competitive sectors such as manufacturing and IT services.
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