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.
Fast-track your talent onboarding while ensuring 100% compliance with local regulations. using an Employer of Record in Bangladesh
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Receive process support by an experienced team of experts & pay your talent on time and in their local currency, ideal for companies looking to hire employees or contractors in Bangladesh
Easily onboard your remote talent in Bangladesh through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.
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.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Bangladesh planning:
The national holidays mentioned below are valid for the year 2026.
| February 4 | Shab-e-Barat | Movable - As per Islamic Lunar Calendar |
| February 21 | Shaheed Day | |
| March 17 | Sheikh Mujibur Rahman's Birthday | |
| March 18 | Laylat al-Qadr | Movable - As per Islamic Lunar Calendar |
| March 19 - 23 | Eid-ul-Fitr | Movable - The first day of Islamic month of Shawwal |
| March 20 | Jumatul Bidah | Movable - As per Islamic Lunar Calendar |
| March 26 | Independence Day | |
| April 14 | Bengali New Year | Movable |
| May 1 | May Day | |
| May 1 | Buddha Purnima | Movable - The full moon day that lies in the first month of the Bangla Calendar |
| May 25 - 30 | Eid-ul-Adha | Movable -As per Islamic Lunar Calendar |
| June 25 | Ashura | Movable - The 10th day of the Islamic month of Muharram |
| August 5 | July Uprising day | |
| August 25 | Eid-e-Milad un-Nabi | Movable - The 12th day of the Islamic month of Rabi ul-Awwal |
| September 4 | Shuba Janmashtami | Movable - The 8th day of the dark fortnight of Bhadrapada month |
| October 21 | Vijaya Dashami | Movable - The 10th day of the Hindu month of Ashvin |
| December 16 | Victory Day | |
| December 25 | Christmas Day |
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.
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.
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:
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:
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.
Hiring in Bangladesh through WorkMotion’s partner network means you don’t need a registered entity in Dhaka before making your first offer.
WorkMotion acts as the legal employer on your behalf, handling every compliance obligation under the Bangladesh Labour Act 2006 (and its subsequent amendments) while you manage the day-to-day work.
WorkMotion generates a locally compliant employment contract aligned with the Bangladesh Labour Act 2006 and Bangladesh Labor Rules 2015. Contracts are drafted in English and/or Bengali as required, and cover all mandatory terms:
Every hire receives a formal appointment letter, a legal requirement under Bangladeshi law, before their start date.
WorkMotion’s in-country partner handles all required employer registrations with the relevant Bangladeshi authorities, including the Department of Labor and the Department of Inspection for Factories and Establishments under the Ministry of Labor and Employment.
This covers tax registration with the National Board of Revenue (NBR) for payroll withholding purposes and any other statutory declarations required before the employee begins work.
Before the first payroll run, WorkMotion configures the employee’s compensation structure in line with Bangladeshi statutory requirements. This includes:
Where applicable, for companies meeting the threshold under the Bangladesh Labour Act, Workers’ Profit Participation Fund (WPPF) contributions are also factored in.
WorkMotion enrolls each employee in the statutory benefits they are entitled to under Bangladeshi law:
Employees who have completed one year of continuous service are entitled to two annual festival bonuses, each equivalent to one month’s basic salary. WorkMotion manages the calculation and disbursement of both.
Where relevant, optional benefits such as group health insurance can be added to the package.
WorkMotion processes monthly payroll in Bangladeshi Taka (BDT), remitting net salaries to employees and submitting all statutory contributions and tax withholdings to the appropriate authorities on time.
Payslip records are maintained in line with the mandatory record-keeping obligations under Bangladeshi labor law.
Clients receive a single, transparent monthly invoice covering the employee’s gross salary, employer-side obligations, and the WorkMotion service fee, with no hidden charges.
Bangladesh’s labor law framework is actively evolving. The Bangladesh Labour (Amendment) Ordinance 2025 revised 125 sections of the existing labor law, introducing changes across wages, leave, compensation, union rights, and workplace equality.
WorkMotion monitors these regulatory changes and updates employment terms, payroll calculations, and benefit structures accordingly, so your team stays compliant without tracking legislative updates themselves.
For most companies hiring one to a handful of employees in Bangladesh, the EOR route removes months of setup time and significant upfront cost. Here’s how the two paths compare:
| Factor | WorkMotion EOR | Setting Up a Bangladesh Entity |
|---|---|---|
| Setup cost | No entity setup cost; per-employee monthly fee | Legal, registration, and capital costs vary by entity type; branch/liaison offices are estimated to require a minimum inward remittance of around USD 50,000 |
| Time to first hire | Days from signed contract | 3–12 weeks for incorporation, depending on entity type; branch and liaison offices require BIDA approval, adding 4–6 weeks |
| Ongoing legal exposure | WorkMotion carries employer-of-record liability; compliance managed by in-country experts | Your entity is directly liable for all labor law compliance, tax filings, and regulatory obligations |
| Ongoing admin burden | Single monthly invoice; payroll, contributions, and compliance handled by WorkMotion | Requires local HR, payroll, legal, and accounting functions, or multiple local vendors |
| Exit flexibility | Offboard an employee or exit the market without entity wind-down | Closing a Bangladeshi entity involves regulatory filings, tax clearances, and can take months |
EOR fits companies that need to hire quickly, want to test the Bangladesh market before committing to a permanent structure, or are hiring a small number of specialized roles. Entity setup makes sense when you have a large, long-term workforce in Bangladesh and the operational scale to justify the ongoing compliance infrastructure.
Bangladesh’s labor law framework has specific requirements that catch foreign employers off guard, particularly those used to European or US employment norms. These are the compliance gaps that create the most exposure.
An employee who completes six months of continuous service automatically transitions from a probationary or contractual status to permanent employment under the Bangladesh Labour Act.
Permanent employees carry significantly stronger protections, including longer notice periods (up to 120 days for monthly-paid workers), gratuity entitlements, and provident fund eligibility.
Foreign employers who treat this transition as optional face legal challenges when they try to terminate or restructure. WorkMotion tracks service milestones and ensures employment terms are updated before the six-month threshold passes.
Two festival bonuses per year, each equal to one month’s basic salary, are a statutory entitlement for any employee who has completed one year of continuous service. These are not discretionary.
Foreign employers who omit them or treat them as a goodwill gesture are in breach of the Bangladesh Labour Act. WorkMotion calculates and disburses both bonuses as part of the standard payroll cycle.
For permanent monthly-paid workers, the statutory notice period for termination is 120 days, or payment in lieu. This is substantially longer than most European markets and catches employers by surprise when they need to restructure quickly.
Termination without proper notice or documentation also triggers compensation obligations of 30 days’ wages per completed year of service. WorkMotion’s compliance team ensures termination processes follow the correct procedure from the outset.
Companies with paid-up capital of BDT 1 crore or permanent assets of BDT 2 crores are required to contribute 5% of annual profits to a Workers’ Profit Participation Fund.
Foreign employers expanding into Bangladesh often don’t realize this obligation applies to their local entity or EOR arrangement once they cross the threshold. WorkMotion monitors applicability and manages WPPF contributions where required.
Gratuity in Bangladesh is an employer-funded obligation: the employee contributes nothing. The accrual rate is 30 days’ wages per completed year of service for employees not enrolled in a provident fund (14 days per year for those who are).
Foreign employers who fail to accrue for gratuity from the start of permanent employment face a significant lump-sum liability at termination. WorkMotion builds gratuity accrual into the employment cost structure from the point of permanent status.
Bangladesh operates a progressive personal income tax system, with rates ranging from 0% to 25% for residents. Employers are responsible for withholding tax at source (TDS) from each salary payment and remitting it to the National Board of Revenue. Non-resident employees face a flat 30% withholding rate with no deductions.
Foreign employers who assume payroll tax is self-managed by employees, as in some other markets, quickly find themselves in breach of their withholding obligations. WorkMotion handles TDS calculation and remittance as part of every monthly payroll run.
Mid-sized B2B SaaS and software companies headquartered in Germany, the Netherlands, or the UK increasingly hire software engineers and product specialists in Bangladesh to address talent shortages at home.
A German engineering team that can’t fill a backend developer role in Munich in under three months can often find qualified candidates in Dhaka within weeks.
WorkMotion’s partner network in Bangladesh means the hire is onboarded compliantly, with a locally valid contract, correct payroll, and statutory benefits in place, without the German company needing to register a legal presence in Bangladesh.
E-commerce operators and digital-first businesses based in Europe or the US often build customer support, content, and operations functions in Bangladesh, where there is a large, English-proficient, digitally skilled workforce.
These companies typically hire five to 20 employees at a time and need a compliant employment structure that scales without entity overhead.
WorkMotion’s EOR solution in Bangladesh handles the full employment lifecycle, from contract to offboarding, so the operations team can focus on building the function, not managing local compliance.
Fintech and green tech companies at the 50–300 employee stage frequently hire specialized finance, compliance, or technical roles in Bangladesh as part of a broader international expansion.
These companies need confidence that their employment arrangements are legally sound, particularly given the active regulatory environment in Bangladesh following the 2025 labor law amendments.
WorkMotion’s compliance monitoring ensures their Bangladesh hires stay aligned with current law, without the internal team needing to track legislative changes across multiple jurisdictions.
NGOs and international development organizations operating programs in Bangladesh need compliant employment structures for local program managers, field coordinators, and technical specialists.
These organizations often lack the internal HR infrastructure to manage Bangladeshi labor law directly and need a trusted partner who can handle payroll, statutory benefits, and compliance on their behalf.
WorkMotion’s partner network in Bangladesh supports this use case, providing the same compliance standards applied across WorkMotion’s 160+ country network.
You’ve found the right person in Bangladesh. The compliance requirements under the Bangladesh Labour Act, including permanent status triggers, festival bonuses, gratuity accrual, WPPF obligations, and TDS withholding, don’t have to slow you down or create legal exposure.
WorkMotion’s partner network in Bangladesh handles every employer obligation, from locally compliant contract generation to monthly payroll in Bangladeshi Taka, so your new hire starts on time and your company stays on the right side of Bangladeshi labor law.
Use our Employment Cost Calculator to estimate the full cost of your Bangladesh hire before you commit, including salary, statutory obligations, and the WorkMotion service fee.
When you’re ready to move forward, Book a Demo and our team will walk you through exactly how hiring in Bangladesh works through WorkMotion.
WorkMotion hires employees in Bangladesh through a vetted in-country partner network rather than a directly owned entity. This structure is standard for markets where WorkMotion’s partner network provides the local legal employer presence, and it does not affect the compliance standards applied. Every Bangladesh hire receives a locally compliant contract, correct statutory benefits, and payroll processed in Bangladeshi Taka (BDT) under the Bangladesh Labour Act 2006.
With WorkMotion’s EOR solution in Bangladesh, onboarding typically takes days from a signed contract, compared to the 3–12 weeks required to incorporate a local entity, plus an additional 4–6 weeks if BIDA approval is needed for a branch or liaison office. The in-country partner handles employer registration with the Department of Labor and tax registration with the National Board of Revenue before the employee’s start date, so there are no compliance gaps on day one.
Under the Bangladesh Labour Act 2006, an employee who completes six months of continuous service automatically acquires permanent employment status, regardless of how the original contract was structured. This triggers materially stronger protections: notice periods extend to up to 120 days for monthly-paid workers, gratuity entitlements begin accruing, and provident fund eligibility applies. WorkMotion tracks each employee’s service milestone and updates employment terms before the six-month threshold passes, so your company isn’t caught off guard by a status change that carries significant termination cost implications.
Festival bonuses in Bangladesh are a statutory obligation under the Bangladesh Labour Act, not a discretionary benefit. Any employee who has completed one year of continuous service is entitled to two bonuses per year, each equal to one month’s basic salary. Omitting them or treating them as optional puts your company in breach of Bangladeshi labor law. WorkMotion calculates and disburses both bonuses as part of the standard payroll cycle, so the obligation is met without requiring your HR team to track the timing manually.
Bangladesh operates a Tax Deducted at Source (TDS) system under which the employer, not the employee, is responsible for calculating, withholding, and remitting income tax to the National Board of Revenue each month. Resident employees are taxed at progressive rates ranging from 0% to 25%, while non-resident employees face a flat 30% withholding rate with no deductions. Foreign employers who assume employees self-manage their tax obligations, as is common in some other markets, quickly find themselves in breach of their withholding duties. WorkMotion handles TDS calculation and remittance as part of every monthly payroll run in Bangladesh.
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