What are the statutory contributions for employees and employers in Bangladesh?
Employee Income Tax
The Bangladeshi tax system applies a progressive tax structure. For the tax year 2022-2023, the tax rates for residents are as follows:
| Taxable Income | Tax Rate |
|---|---|
| BDT 250,000 | 0% |
| BDT 250,001 – BDT 400,000 | 10% |
| BDT 400,001 – BDT 750,000 | 15% |
| BDT 750,001 – BDT 1,200,000 | 20% |
| BDT 1,200,001 – BDT 1,800,000 | 25% |
| BDT 1,800,001 – BDT 2,500,000 | 30% |
| above BDT 2,500,001 | 35% |
Employer Payroll Contributions
Employers are required to contribute 5% of their employees’ gross salary to the Provident Fund.
Employee Payroll Contributions
Employees are required to contribute 5% of their gross salary to the Provident Fund.
What is the minimum wage in Bangladesh?
Bangladesh sets a minimum monthly wage of BDT 8,000 in 2022.
What is the payroll cycle in Bangladesh?
The standard payroll cycle in Bangladesh is monthly, with pay dates falling on the last day of the month.
How long is the working hours in Bangladesh?
Employees customarily work 48 hours per week; however, they can work at a maximum of 60 hours a week, including overtime.
How many leaves are employees entitled to?
- Standard paid time off — employees in Bangladesh are entitled to at least 10 days of paid annual leave per year, which accrues gradually over time.
- Compulsory annual public holidays — there are 14 national public holidays in Bangladesh.
- Minimum paid sick leave — there is no mandatory minimum paid sick leave in Bangladesh.
What are the public holidays in Bangladesh?
Here is the list of public holidays in Bangladesh for 2023:
| Date | Name |
| 21 Feb | Language Martyr’s Day |
| 8 Mar | Shab e-barat |
| 17 Mar | Sheikh Mujibur Rahman’s Birthday |
| 26 Mar | Independence Day |
| 14 Apr | Bengali New Year |
| 19 Apr | Shab e-Qadr |
| 20 Apr | Eid Ul Fitr Holiday |
| 21 Apr | Jumatul Bidah |
| 22 Apr | Eid-Ul Fitr Holiday |
| 23 Apr | Eid-Ul Fitr |
| 1 May | Labour Day |
| 4 May | Buddha Purnima |
| 27 Jun | Eid-Ul Adha Holiday |
| 28 Jun | Eid-Ul Adha |
| 29 Jun | Eid-Ul Adha Holiday |
| 30 Jun | Eid-Ul Adha Holiday |
| 29 Jul | Ashura |
| 15 Aug | National Mourning day |
| 6 Sep | Janmashtami |
| 28 Sep | Eid-e-Milad un-Nabi |
| 24 Oct | Durga Puja |
| 16 Dec | Victory day |
| 25 Dec | Christmas day |
How long is the maternity and paternity leave in Bangladesh?
- Statutory maternity leave — female employees in Bangladesh are entitled to up to 16 weeks of paid maternity leave.
- Statutory paternity leave — male employees in Bangladesh are not entitled to paternity leave.
- Statutory parental leave — there is no mandatory parental leave in Bangladesh.
What rights do employees have upon leaving employment due to certain conditions?
Employers can terminate employees for valid reasons such as poor performance or misconduct, but this must be done via providing a written notice. When an employee’s service with a company is terminated for certain reasons, they are entitled to certain rights and benefits, including:
- Notice period — the minimum notice period for termination varies based on the length of service, ranging from one week to six months.
- Severance pay — employees with at least one year of service are entitled to severance pay, which varies based on the length of service.
- Probation period — employees can have six months of probation period at max.
What is the type of visa for employees in Bangladesh?
In order to be granted an employment visa in Bangladesh, the applicant must have a valid job offer from an Bangladeshi employer while the employer must obtain a work permit from the Bangladesh Bureau of Manpower, Employment, and Training.
Bangladesh offers a variety of employment visas, including the Work Visa, the Business Visa, and the Investment Visa.
Standard VAT Rate
The standard VAT rate in Bangladesh is 15%.