Country Payroll Guide Bangladesh

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Key Facts

Date format
No official standard.
Bangladeshi Taka (BDT) (৳)
the standard rate is 15%

Minimum Wage

Minimum Wage

Varies according to industry. Workers in sectors not entitled to an industry-specific rate have their minimum set at 1500Tk per month.


Payroll Cycle
13th Salary

Not required by law.

Income Tax

Employee Income Tax (1)
Less than 250,000 BDT - 0%
Employee Income Tax (2)
250,000 to 400,000 BDT - 10%
Employee Income Tax (3)
400,000 to 500,000 BDT - 15%
Employee Income Tax (4)
500,000 to 600,000 BDT - 20%
Employee Income Tax (5)
600,000 to 3,000,000 BDT - 25%
Employee Income Tax (6)
Over 3,000,000 BDT - 30%

Working Hours

General Working Hours

48 hours per week.


Paid Time Off

Bangladesh has 21 days of national holidays each year. Employees are only entitled to take 11 as paid holidays. The employer choses which ones.

Public Holidays

21 public holidays.

Sick Days

Sick leave entitlement is 14 days per year on full pay, but requires a medical certificate.

Maternity Leave

16 weeks of leave with full wages, to be taken either side of the due date.

Paternity Leave

No paternity leave.

Parental Leave

No parental leave.


Termination Process

There is no restriction in terminating an employee who is on probation — the employer shall neither be obliged to give any notice nor be obliged to pay in lieu of notice. An employee shall become permanent if he/she has completed the probation period successfully.

Upon termination of a full-time employee, some benefits have to be provided by the organization. In case of a permanent employee, compensation at the rate of 30 days salary for every completed year of service or gratuity, if any, whichever is higher:

  • If the organization has provident fund, and the permanent employee is a member of the fund, then the permanent employee shall be entitled to the provident fund as per the provident fund policy
  • Payment in lieu of the un-availed earned leave (if any) at the time of the termination of the employee which shall be paid on a pro-rata basis
Notice Period

An employer may dismiss a worker without notice or payment in lieu of notice if the worker has been convicted of any criminal offence or if the worker has been found guilty of misconduct.

A permanent worker must be given 120 days’ notice, and a temporary worker, whose termination is not owing to the completion, cessation, abolition or discontinuance of the temporary work for which he or she was appointed. The employer may terminate any worker without notice by paying wages in lieu of notice.

Severance Pay

If a worker is dismissed for misconduct on account of theft, misappropriation, fraud or dishonesty in connection with the business or property of the employer, or disorderliness, riot, arson or breakage in the establishment, they are not entitled to any compensation for the dismissal.

If a worker who has been in continuous service for at least one year, under extenuating circumstances, is removed, instead of being dismissed for criminal conduct or misconduct, they will be entitled to compensation of 15 days’ wages for every completed year of service.

Probation Period

Clerical workers are entitled to a probationary period of six months; other workers are entitled to a three month probation period.


Employment Visa

Complete application for on site for the Department of Immigration & Passports in Bangladesh. Bring completed form to their Bangladeshi embassy. The visa application fee will vary based on the applicant’s country and the processing time is two weeks.