Bangladesh
Bangladesh is a hub of some of the world’s best-in-class talent. But if you’re not already physically established there, hiring in Bangladesh can feel like pushing a giant boulder uphill with a pair of scissors. We’re here to make it feel easy—in the next couple of minutes, you’ll learn how to hire remote talent in Bangladesh, without all the headaches.
Country snapshot
CURRENCY
Bangladesh taka (BDT)
EMPLOYER TAXES
10% to 30%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Bengali
It’s the fastest way to hire globally
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It’s a lot cheaper
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
It’s more flexible for you & your team
Can be less risky than hiring employees
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
Some people want to be employees
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
You might not have as much control over your talent
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
Hiring remotely in another country is normally difficult—the labor laws are different and you haven’t established a physical presence, so you’ll need to rethink the way you approach hiring. Bottom line is, you’ve got two options—we’ll cover them below.
Hire talent as contractors
Hire talent as employees
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Bangladesh than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Bangladesh.
Employer tax
Sales Tax
Social Security
Statutory contributions
Medical Insurance
Paid Time Off (PTO)
PTO is calculated by the year of service:
- Employees is entitled one day of paid leave for every 18 days, if they are working in a commercial establishment, factory, shop or transport.
- Employees who work for a newspaper, they receive one day of vacation for every 11 days worked.
- If they work on a tea plantation, they receive one day off every 22 workdays.
- In Bangladesh, any unused leave can be carried over, up to a maximum of 60 days unless the employee works for a factory, then they can carry over 40 days.
Public Holidays
There are 17 public holidays.
Sick Days
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
- Employees receive 14 days of sick leave per year after a year of service, except for newspaper employees.
- Employee must present a medical certificate to receive sick leave and employees cannot carry over the remaining sick leave to the following year.
- Sick leave is paid at the equivalent of the employee’s normal wages.
Maternity Leave
Pregnant employees receive eight weeks of fully paid maternity leave before and after the birth.
A medical certificate affirming pregnancy must be provided to an employer to be eligible.
Unpaid maternity leave will be provided for expectant mothers employed with their company for fewer than six months, or for expectant mothers who already have two years.
Paternity Leave
In Bangladesh, fathers (service holder) will be getting fixed 15 days paternity leave.
Parental Leave
No Info.
Other Leave
No Info.
Marriage Leave
No Info.
Bereavement Leave
No Info.
Termination Process
Employees may be terminated for reasons of physical or mental incapacity or continued ill-health as certified by a medical practitioner.
Employees can be terminated for misconduct without notice or severance pay, or alternatively, demoted, blocked from a promotion for a year, fined or warned.
If the employee has served at least one year, s/he is entitled to 30 days of wages for each year of service.
Notice Period
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 of pay for every year served.
Employees who have been convicted of a criminal offense or found guilty of misconduct are not owed notice or severance.
Termination of employment in Bangladesh for other reasons generally requires the employer to provide written notice of 120 days for monthly rated workers or 60 days for other workers, or equivalent pay in lieu.
Severance Pay
In Bangladesh, employee has served at least one year, s/he is entitled to 30 days and then 45 days for each year of service above ten years.
Probation Period
Clerical workers are entitled to a probationary period of six months; other workers are entitled to a three-month probation period.
Working Hours
Bangladesh has a 40-hour week with Friday and Saturday off.
Overtime
Bangladesh Labor Act section 102, the working hours should not exceed 48 hours per week.
Overtime is generally calculated by dividing the total salary (including medical and housing benefits) by 208.
Employers then double this number and multiply the result by the number of overtime hours worked.
%5B1%5D.avif)
Run your global workforce on autopilot with Thera
Book a demo to get started.