Payroll and Benefits Guide Bangladesh
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
| There are no mandatory Social Insurance contributions for the employer. |
| Employee Payroll Contributions | |
| There are no mandatory Social Insurance contributions for the employee. | |
| Employee Income Tax* | Annual |
| 0% | In come up to 350,000 Tk |
| 5% | On the next 100,000 Tk |
| 10% | On the next 400,000 Tk |
| 15% | On the next 500,000 Tk |
| 20% | On the next 500,000 Tk |
| 25% | On the next 2,000,000 Tk |
| 30% | On income exceeding 3,850,000 Tk |
| Taxpayers’ category | Tax free limit |
| For female taxpayers | 400,000 Tk |
| For taxpayers aged 65 years and above | 400,000 Tk |
| Individuals with disability | 475,000 Tk |
| For gazetted war-wounded freedom fighters | 500,000 Tk |
| Non-Residents who are not Bangladeshi citizens | Flat rate of 30% |
*A new exemption has been introduced where the lower of Tk. 450,000 or 1/3 of total taxable income is exempt from Income Tax.
Employer taxes
Employee taxes
Minimum Wage
General
In Bangladesh, the National Minimum Wage Board determines the minimum wage for each sector every five years. The current minimum wage is across sectors is up to BDT 12,500 per month for those in the garment industry.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
In Bangladesh, the payroll cycle can be daily, weekly, bi-weekly and monthly. Employees salary must be paid by the end of the seventh day after the final day on which the payment is due, according to Bangladesh’s Employee Rights and Labor Law. The same rules are applied for those employees whose employment has been ended by the employer.
13th & 14th Salaries
Employees who have completed at least one year of service are entitled to two festival bonuses each year. Each bonus should not be more than the basic salary.
Working Hours
General
The standard workweek in Bangladesh is Sunday to Thursday, 9 hours per day, and a weekly maximum of 48 hours.
Overtime
- Maximum Ordinary Hours (BLA Section 100/102): The standard work limit is 8 hours per day and 48 hours per week. Any work performed beyond these hours is classified as overtime (extra-allowance).
- Daily Maximum: An employee cannot work more than 10 hours in a single day, including overtime (BLA Section 108).
- Weekly Maximum (BLA Section 102/108): Total working hours, including overtime, must not exceed 60 hours per week, with the condition that the average weekly hours over the year do not exceed 56 hours.
- Consent and Authorization: Overtime work is only permitted with the consent of the worker and often requires prior approval from the Chief Inspector of Factories and Establishments for employing workers in overtime hours.
- Exemptions: Managerial and administrative staff are often exempt from the statutory overtime provisions.
Mandatory Overtime Pay Rates (BLA Section 108)
Bangladesh mandates a high, non-negotiable minimum premium rate for all standard overtime.
-
Standard Overtime: Any work exceeding the 8 hours per day or 48 hours per week threshold must be compensated at a minimum of twice the ordinary rate of wages (200%).
| Day/Condition | Minimum Compensation Rate (Statutory) | Total Pay Rate | Notes |
| Normal Overtime (Working Days) | 2 times the ordinary rate of basic wage and allowances. | 200% | This applies to all hours worked beyond 8/day or 48/week. |
| Weekly Rest Days & Public Holidays | 2 times the ordinary rate of basic wage and allowances. | 200% | Work performed on a designated weekly rest day (usually Friday) or a public holiday is also paid at this minimum double rate. |
Calculation Note: The “ordinary rate of wages” used for the overtime calculation includes the basic wage and dearness allowance (if any), but typically excludes discretionary bonuses.
Leave
Annual Leave (vacation)
Employees are entitled to 1 day annual leave for every 18 days of work per calendar year (certain industries calculate leave entitlement differently).
Paid time off
Under Bangladesh labour law, employees earn statutory annual (earned) leave after one year of service (e.g., 1 day per ~18 days worked). Unused annual leave can be carried over to the following year rather than automatically expiring at year-end, and there are maximum carryover limits (often up to ~40 days for most workers, with up to ~60 days in certain industries). Employers must allow this carryover and/or pay out unused leave on termination — you cannot simply delete accrued statutory PTO by policy.
Note:
- Proclosz allows the entire PTO balance can be carried over if not used. The annual PTO entitlement is 20 days per year.
- Zapeo allows 6 days carry over per year, the remainder will be forfeited
Public Holidays
Although Bangladesh has 21 days of national holidays each year, employees are only entitled to take 11 of them off as paid holidays, and it is the employer’s choice as to which ones.
Public holidays that fall on a weekend are lost.
Certain religious holidays are determined by the lunar cycle and will be confirmed nearer the date of the holiday.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 4 February 2026 | Wednesday | Shab-e-Barat | Standard holiday |
| 21 February 2026 | Saturday | Shaheed Day & International Mother Language Day | Standard holiday |
| 17 March 2026 | Tuesday | Birthday of Father of the Nation, Bangabandhu Sheikh Mujibur Rahman | Standard holiday |
| 18 March 2026 | Wednesday | Laylat al-Qadr (Shab-e-Qadr) | Standard holiday |
| 20 March 2026 | Friday | Jumu’atul-Wida | Standard holiday |
| 21 March 2026 | Saturday | Eid-ul-Fitr Holiday | Standard holiday |
| 22 March 2026 | Sunday | Eid-ul-Fitr Holiday | Standard holiday |
| 23 March 2026 | Monday | Eid-ul-Fitr | Standard holiday |
| 26 March 2026 | Thursday | Independence Day | Standard holiday |
| 14 April 2026 | Tuesday | Pahela Baishakh (Bengali New Year) | Standard holiday |
| 1 May 2026 | Friday | May Day (Labour Day) | Standard holiday |
| 22 May 2026 | Friday | Buddha Purnima (Vesak) | Standard holiday |
| 25 May 2026 | Monday | Eid-ul-Adha Holiday | Standard holiday |
| 26 May 2026 | Tuesday | Eid-ul-Adha Holiday | Standard holiday |
| 27 May 2026 | Wednesday | Eid-ul-Adha | Standard holiday |
| 28 May 2026 | Thursday | Eid-ul-Adha Holiday | Standard holiday |
| 29 May 2026 | Friday | Eid-ul-Adha Holiday | Standard holiday |
| 30 May 2026 | Saturday | Eid-ul-Adha Holiday | Standard holiday |
| 26 June 2026 | Friday | Ashura | Standard holiday |
| 5 August 2026 | Wednesday | July Uprising Day | Standard holiday |
| 25 August 2026 | Tuesday | Eid-e-Milad-un-Nabi | Standard holiday |
| 4 September 2026 | Friday | Shuba Janmashtami | Standard holiday |
| 8 October 2026 | Thursday | Durga Puja (Bijoya Dashami) | Standard holiday |
| 9 October 2026 | Friday | Durga Puja Holiday | Standard holiday |
| 16 December 2026 | Wednesday | Victory Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
Employees are generally entitled to 14 days of paid sick leave per year, paid by the employer, however, this is an annual entitlement and cannot be carried over from year to year.
All employees must present a medical certificate for all absences to receive sick leave and pay.
Casual Leave
Employees are entitled to 10 days paid leave per year for urgent matters such as sudden illness, minor accidents and urgent personal issues. This leave does not accumulate nor carry forward into the following year if unused.
Maternity Leave
Female employees who have worked for at least six months are entitled to 8 weeks of paid maternity leave before the birth and 8 weeks of paid leave after the birth paid by the employer. Women who have worked less than six months or who already have two other surviving children are generally eligible for unpaid leave.
Women are also forbidden to work for eight weeks after the birth of a child.
Women who suffer a miscarriage before the commencement of maternity leave are entitled to 4 weeks paid leave with no deductions from wages during this period.
Paternity Leave
There is no provision for paternity leave in Bangladesh. However, some companies do choose to create a paid paternity leave policy.
Parental Leave
There is no provision for parental leave.
Other Leave
There is no provision for other leave in Bangladesh.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Employees with at least one year of service are generally entitled to one month’s notice or pay in lieu of notice and 30 days salary for every year of service.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| The pay period may be daily, weekly, bi-weekly or monthly, depending on the agreement. The law states wages must be paid before the expiry of the 7th day after the last day of the wage period. | When employment ends (by retirement, dismissal, removal, etc.), wages payable must be paid before the expiry of the 7th working day from the last day of employment. | Sources mention that wages may be paid “in legal tender or through cheque and, in some cases, through electronic transfer in favor of the bank account of the worker or through any other digital medium.” |
Notice Period
The notice period is 120 days or payment in lieu of notice can be given. Employees who resign must give 60 days notice.
No notice is required to be given during the probationary period.
Severance Pay
Employees who are terminated or resign having completed at least one year with an employer are entitled to severance pay (gratuity) of 30 days’ salary for each completed year of service.
Probation Period
Probation periods is a minimum of 3 months and a maximum of 6 months.
Immigration
All foreigners entering Bangladesh require a visa. There are many types of visas for prospective foreign nationals, including business, investor, employment, and NGO working visas. The duration of stay will be worked out by the embassy at which one is applying following a review of required documentation, generally, a valid passport, two passport-size photographs, an application form, and the visa fee.
If expats are going to work in Bangladesh, a work permit is also required. Government bodies tasked with issuing these permits include the Bangladesh Investment Development Authority, the Bangladesh Export Processing Zone Authority, and the NGO Affairs Bureau. The prospective employer will confirm which body to contact.
VAT
General
The standard rate of VAT in Bangladesh is 15%.
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Payroll and Benefits Guide
in Bangladesh
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 4 February 2026 | Wednesday | Shab-e-Barat | Standard holiday |
| 21 February 2026 | Saturday | Shaheed Day & International Mother Language Day | Standard holiday |
| 17 March 2026 | Tuesday | Birthday of Father of the Nation, Bangabandhu Sheikh Mujibur Rahman | Standard holiday |
| 18 March 2026 | Wednesday | Laylat al-Qadr (Shab-e-Qadr) | Standard holiday |
| 20 March 2026 | Friday | Jumu’atul-Wida | Standard holiday |
| 21 March 2026 | Saturday | Eid-ul-Fitr Holiday | Standard holiday |
| 22 March 2026 | Sunday | Eid-ul-Fitr Holiday | Standard holiday |
| 23 March 2026 | Monday | Eid-ul-Fitr | Standard holiday |
| 26 March 2026 | Thursday | Independence Day | Standard holiday |
| 14 April 2026 | Tuesday | Pahela Baishakh (Bengali New Year) | Standard holiday |
| 1 May 2026 | Friday | May Day (Labour Day) | Standard holiday |
| 22 May 2026 | Friday | Buddha Purnima (Vesak) | Standard holiday |
| 25 May 2026 | Monday | Eid-ul-Adha Holiday | Standard holiday |
| 26 May 2026 | Tuesday | Eid-ul-Adha Holiday | Standard holiday |
| 27 May 2026 | Wednesday | Eid-ul-Adha | Standard holiday |
| 28 May 2026 | Thursday | Eid-ul-Adha Holiday | Standard holiday |
| 29 May 2026 | Friday | Eid-ul-Adha Holiday | Standard holiday |
| 30 May 2026 | Saturday | Eid-ul-Adha Holiday | Standard holiday |
| 26 June 2026 | Friday | Ashura | Standard holiday |
| 5 August 2026 | Wednesday | July Uprising Day | Standard holiday |
| 25 August 2026 | Tuesday | Eid-e-Milad-un-Nabi | Standard holiday |
| 4 September 2026 | Friday | Shuba Janmashtami | Standard holiday |
| 8 October 2026 | Thursday | Durga Puja (Bijoya Dashami) | Standard holiday |
| 9 October 2026 | Friday | Durga Puja Holiday | Standard holiday |
| 16 December 2026 | Wednesday | Victory Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Hi , would like to know more about mandatory social security in bangladesh.
A social insurance NSSF system does exist but with limited scope (mostly provident fund and accident coverage). Typically only those within the formal sector must make contributions towards it – both employer and worker. Those companies in the informal sector are not usually required to contribute. There are plans for the expansion of the scope of NSSF but it is yet to be fully rolled out.