The riverine country of Bangladesh (“Land of the Bengals”) is one of the most densely populated countries in the world, and its people are predominantly Muslim. Bangladesh is one of the world’s largest garment exporters, with the ready-made Garments sector accounting for 84% of its exports. The country has fertilizer factories, textile mills, sugar factories, glassworks, cement factories, and aluminum works. 

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Bangladesh.

Capital :
Dhaka
Currency :
Bangladesh Taka (BDT, ৳)
Languages spoken :
Bengali
Population :
166.3 million (2021 est.)
Minimum wage 2022 :
BDT 1,500 monthly
Cost of Living index :
$ (113 of 139 countries)
Payroll Frequency :
Monthly
VAT - standard rate :
15%
GDP - real growth rate :
6.9% (2021 est.)

Statutory Holidays

The national holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
February 21
Shaheed Day
March 17
Sheikh Mujibur Rahman's Birthday
March 18
Shab-e-Barat
Movable - As per Islamic Lunar Calendar
March 26
Independence Day
April 14
Bengali New Year
April 28
Laylat al-Qadr
Movable - As per Islamic Lunar Calendar
April 29
Jumatul Bidah
Movable - As per Islamic Lunar Calendar
May 1
Labor Day
May 2-3
Eid-ul-Fitr
Movable - The first day of Islamic month of Shawwal
May 16
Buddha Purnima
Movable - The full moon day that lies in the first month of the Bangla Calendar
July 9-11
Eid-ul-Adha
Movable -As per Islamic Lunar Calendar
August 9
Ashura
Movable - The 10th day of the Islamic month of Muharram
August 15
National Mourning Day
August 19
Shuba Janmashtami
Movable - The 8th day of the dark fortnight of Bhadrapada month
October 5
Vijaya Dashami
Movable - The 10th day of the Hindu month of Ashvin
October 9
Eid-e-Milad un-Nabi
Movable - The 12th day of the Islamic month of Rabi ul-Awwal
December 16
Victory Day
December 25
Christmas Day

Contract Sharing Time


The approximate time for sharing the contract with an employee in Bangladesh is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know


  • The workers who have completed one year of service/job consecutively must be given two festival bonuses in a year.
  • Fixed-term employment contracts are permissible under the category of ‘temporary’ employment. However, the law does not stipulate a maximum duration for such employment.
  • The minimum wage is BDT 1,500 monthly for all economic sectors not covered by industry-specific wages.

Labor Conditions


Working Hours

No adult worker should ordinarily be required or allowed to work in an establishment for more than eight hours on any day or 48 hours in a week. The total hours of work of an adult worker should not exceed 60 hours in any week and on average, 56 hours per week in any year. Where an adult worker in an establishment works on a shift that extends beyond midnight, a holiday for a whole day should mean a period of 24 consecutive hours beginning from the end of their shift. 

Overtime

Workers may work in an establishment not exceeding 10 hours on any day for overtime. Where a worker works in an establishment on any day or week for more than the hours fixed, they are entitled to allowance at the rate of twice their ordinary rate of basic wage and dearness allowance and ad-hoc or interim pay, if any.

Probation Period

The period of probation for a worker whose function is of clerical nature is six months and for other workers, such period is three months. Provided that in the case of a skilled worker, the period of probation may be extended by an additional period of three months if, for any circumstances, it has not been possible to determine the quality of their work within the first three months’ period of their probation. 

 

Termination Notice Period

A worker may be dismissed without prior notice or pay in lieu thereof if they are:

  • Convicted for any criminal offense; or
  • Found guilty of misconduct.

The employment of a permanent worker may be terminated by the employer by giving to them in writing:

  • 120 days’ notice, if they are a monthly rated worker;
  • 60 days’ notice, in case of other workers.

The employment of a temporary worker may be terminated by the employer by giving to them in writing:

  • 30 day’s notice, if they are a monthly rated worker;
  • 14 days notice, in case of other workers.

Leave / Time Off

Annual Leave

Every adult worker, who has completed one year of continuous service in an establishment, is allowed during the subsequent period of 12 months leave with wages for a number of days calculated at the rate of one day for every 18 days of work. If a worker does not, in any period of 12 months, take the leave to which they are entitled, either in whole or in part, any such leave not taken is added to the leave to be allowed to them, in the succeeding period of 12 months.

Sick Leave

Every worker is entitled to sick leave with full wages for 14 days in a calendar year. No such leave is allowed unless a registered medical practitioner is appointed by the employer or, if no such medical practitioner is appointed by the employer, any other registered medical practitioner, after examination, certifies that the worker is ill and requires sick leave for cure or treatment for such period as may be specified by them. Such leave is not accumulated and carried forward to the succeeding year.

Parental Leave

There is no provision for parental leave in Bangladesh.

 

Maternity Leave

No employer should knowingly employ a woman in their establishment during the eight weeks immediately following the day of her delivery. No woman should work in any establishment during the eight weeks immediately following the day of her delivery. 

An employer should pay maternity benefits to a woman in one of the following ways as the woman desires, namely:

  • For eight weeks, within three working days of the production of a certificate signed by a registered medical practitioner; or
  • For the said period up to and including the day of delivery, within three working days of the production of proof that she has given birth to a child, and for the remainder of the said period, within eight weeks of the production of such proof; or
  • For the whole of the said period, within three working days of the production of proof that she has given birth to a child.

 

Paternity Leave

Bangladesh has no paternity leave opportunity for its male employees or workers.

 

Adoption Leave

Bangladesh has no adoption leave for its employees or workers.

Other Types of Paid Leave

Casual Leave

Every worker is entitled to casual leave with full wages for 10 days in a calendar year. Such leave is not accumulated and carried forward to the succeeding year. The worker can take casual and sick leave before or after the weekly leave or occasional leave. 

Unpaid Leave

Bangladesh has no statutory unpaid leave for its employees or workers.

Statutory Benefits

There is no concept of social security in Bangladesh. However, companies of a certain size need to pay 5% of their profits into a Workers Profit Participation Fund. No contribution from employees is required in this case.

Health Insurance

There is no statutory provision for healthcare insurance for employers. Employers pay for sickness benefits and maternity benefits for employees that are discussed in the respective sections. On-site medical facilities are provided for employees of firms with at least 300 workers. 

Other Insurances

Accident Insurance

 

If personal injury is caused to a worker by accident arising out of and in the course of their employment, the employer is liable to pay compensation. The amount of compensation varies as per the extent of disability.

All owners should initiate a group insurance policy for each worker. The group insurance policy is applicable in case of the death of workers and their permanent disabilities. The owner can have agreements with all insurance companies approved by the government in order to launch the insurance policy. The annual premium of the policy is paid by the Owner. 

Unemployment Insurance

 

No statutory unemployment benefits are provided.

Public Pension

A worker employed in any establishment should retire from employment ipso facto on the completion of the 57th year of their age. For the purpose of counting the age of the worker, the date of birth recorded in the service book of the concerned worker is counted as conclusive proof. The employer does not contribute to pension benefits.

Other Statutory Benefits

Death Benefit

 

If a worker dies while in service after a continuous service of not less than three years, their nominee or in the absence of a nominee, their dependant is paid by the employer a compensation at the rate of 30 days wages for every completed year of service, or for any part thereof in excess of six months or gratuity, if any, whichever is higher, in addition to any other benefit to which the deceased worker would have been entitled had they retired from service.

Provident Fund

 

An establishment in the private sector may constitute for the benefit of its worker a provident fund. Every permanent worker should, after the completion of one year of service in the establishment constituting the provident fund, subscribe to the fund, every month, a sum, unless otherwise mutually agreed, not less than 7% and not more than 8% of their monthly basic wages. The employer should contribute to it an equal amount. The cost of maintenance of the provident fund is borne by the employer.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

 

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