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Payroll and Benefits Guide Bangladesh

Last updated: Mar 03, 2026

Currency
Bangladeshi taka (৳) (BDT)
Employer Taxes
0.0%
Payroll Frequency
Bi-Weekly/Weekly/Monthly
Employee Costs
0%
Capital
Dhaka
Date Format
dd/mm/yyyy
Fiscal Year
1 July - 30 June
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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

Highest
Lowest

Employee taxes

Highest
Lowest

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)

Highest
Lowest

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.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

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%.

Stay up to date on payroll & employment law changes

Version History

September 29, 2022
Paid time off has been updated.
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Questions & Answers

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Bhoomi Negi
Bhoomi Negi
1 year ago

Hi , would like to know more about mandatory social security in bangladesh.

Rotem Kraus
Rotem Kraus
1 year ago
Reply to  Bhoomi Negi

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.

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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...

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Public Holidays Calendar

Bangladesh
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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