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.
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Capital :
Dhaka
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Currency :
Bangladesh Taka (BDT, ৳)
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Languages spoken :
Bengali
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Population :
166.3 million (2021 est.)
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Minimum wage 2023 :
BDT 1,500 monthly
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Cost of Living index :
$ (113 of 139 countries)
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Payroll Frequency :
Monthly
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VAT - standard rate :
15%
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GDP - real growth rate :
6.9% (2021 est.)
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The national holidays mentioned below are valid for the year 2024.
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.
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.
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.
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.
A worker may be dismissed without prior notice or pay in lieu thereof if they are:
The employment of a permanent worker may be terminated by the employer by giving to them in writing:
The employment of a temporary worker may be terminated by the employer by giving to them in writing:
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.
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.
There is no provision for parental leave in Bangladesh.
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:
Bangladesh has no paternity leave opportunity for its male employees or workers.
Bangladesh has no adoption leave for its employees or workers.
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.
Bangladesh has no statutory unpaid leave for its employees or workers.
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.
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.
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.
No statutory unemployment benefits are provided.
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.
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.
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.
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.
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