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Mercans offers complete payroll, PEO and HR services in Bangladesh

Mercans provides comprehensive payroll, PEO, and HR solutions to businesses operating in Bangladesh, ensuring a seamless and hassle-free experience for both employers and employees. By outsourcing their payroll and HR functions to Mercans, businesses can save time, reduce costs, and focus on their core competencies while ensuring compliance with local laws and regulations. Moreover, with Mercans' experienced team of experts, businesses can benefit from best-in-class solutions and an exceptional level of customer service.


Doing Business in Bangladesh

Doing business in Bangladesh can be challenging due to factors such as bureaucracy, lack of infrastructure, and corruption. However, the country's growing economy, favorable demographics, and strategic location make it an attractive destination for foreign investment.

Entity Registration and Incorporation Requirements

In Bangladesh, businesses are required to register with the Registrar of Joint Stock Companies and Firms (RJSC) and follow the incorporation requirements outlined in the Companies Act, 1994.


Banking Hours: 9:00 am to 5:00 pm from Monday to Thursday

Working Week

The standard working week is from Monday to Thursday from 9:00 am - 5:00 pm

Labor Law

The labor law in Bangladesh is governed by the Bangladesh Labor Act, which outlines the legal framework for employment relationships, working conditions, wages, benefits, and dispute resolution. The law applies to all businesses operating in Bangladesh and aims to protect the rights of workers and promote fair labor practices.

Main Industries

Textiles, Pharmaceutical products, electronics, shipbuilding automotive, bicycle

GDP Growth


Dates & Numbers


Official State Name

People's Republic of Bangladesh


165 million



Major Languages



Bangladeshi Taka (BDT)

Internet Domain


International Dialing Code


Dhaka, BD
12:09 pm, May 23, 2024
temperature icon 35°C
Humidity 59 %
Wind Gust: 0 mph


Payroll in Bangladesh involves calculating and processing employee salaries, wages, bonuses, and benefits in compliance with the country's labor laws and tax regulations. This can be a complex process due to the various deductions and contributions required by law. Mercans offers comprehensive payroll services in Bangladesh that include calculating employee salaries, managing benefits, and ensuring compliance with local labor laws and tax regulations. With their expertise in the field, Mercans can help businesses navigate the complexities of payroll processing in Bangladesh.

It is acceptable to provide employees with online payslips


Payroll reports must be kept for 6 years


Employees receive paid annual leave of 10 days

Annual Leave

Employees receive paid sick leave of 14 days

Sick Leave

6 months of paid maternity leave and there is no paternity leave

Maternity & Paternity Leave

30 days

Employee Termination

There are no provisions mandated by law regarding the 13th-month salary

13th-month salary

1500Tk per month

Minimum Wage

Overtime payment regulated by employment contract/collective agreements up to a maximum of 10 hours per day


Employees paid monthly are entitled to 30 days’ pay for each year of employment for the first year of service

Severance Pay


Tax and Social Security

Taxation in Bangladesh is regulated by the National Board of Revenue and covers corporate tax, value-added tax (VAT), personal income tax, and other taxes. Social security in Bangladesh is managed by the government’s Social Security Division and includes programs for pensions, health, maternity, and disability benefits.


Employers in Bangladesh are required to deduct income tax from employees’ salaries and deposit it with the government. Both employees and employers are also required to contribute to social security schemes such as pension and health insurance.


Corporate Income Tax


Personal Income Tax


Sales Tax



Social Security

Both employees and employers in Bangladesh are required to contribute to social security schemes, including pension, health insurance, and disability benefits, among others. The contribution rates vary depending on the type of scheme and the employee's salary.


Social Security Rate


Social Security Rate for Employers


Social Security Rate for Employees


Employment Law

Employment laws in Bangladesh govern the rights and obligations of both employers and employees in the workplace. These laws regulate areas such as working conditions, employment contracts, wages, hours of work, and termination of employment. The main employment laws in Bangladesh include the Bangladesh Labor Act, which sets out the basic terms and conditions of employment, and the Bangladesh Labor Rules, which provide more detailed guidance on the implementation of the Labor Act. Additionally, the Bangladesh Industrial Relations Ordinance governs the formation and operation of trade unions and industrial relations in the country. Employers in Bangladesh must comply with these laws to ensure that their employees' rights are protected, and to avoid legal and financial penalties.

Employment Agreement

An employment agreement in Bangladesh is a legally binding contract that outlines the terms and conditions of employment between an employer and an employee.

Working condition

Working conditions in Bangladesh are subject to regulations and guidelines set forth by the Bangladesh Labor Act, which includes provisions for workplace safety, minimum wage, working hours, and leave entitlements.


In Bangladesh, employees are entitled to a certain number of leaves, including annual leave, sick leave, maternity leave, and casual leave. The exact number of leaves and other details may vary based on the employee's position, company policy, and other factors.

Employment termination

Employment termination in Bangladesh can be initiated by either the employer or the employee, and it must follow the procedures set out in the country's labor laws.


30 days

Minimum notice period for terminating an employee



Total number of public holidays



Working hours per week


2 days

Total number of days for Compassionate & Bereavement Leave



Foreign nationals planning to work in Bangladesh must obtain a work permit and visa. The employer must apply for the work permit on behalf of the employee, and the employee must apply for the visa at a Bangladeshi embassy or consulate. The duration of the work permit and visa will depend on the length of the employment contract.


Residency permits

Foreign nationals who wish to work in Bangladesh require a valid work permit and a residency permit. The residency permit is typically valid for one year and can be renewed. The permit allows for multiple entries into the country and is issued by the Department of Immigration and Passports.

Work Permit Validity

3 years

Required Documents

A completed visa application form

A letter of appointment from the employer in Bangladesh

An original passport that is valid for a minimum of six months

A copy of a recent passport photo

Proof of payment of the visa fee, paid to the appropriate embassy

A letter of recommendation from the Bangladesh Export Processing Zones Authority (BEPZA) and the Board of Investment (BOI)

Compliant, reliable, error-free and touchless payroll in Bangladesh

Build the best team and hire top talent compliantly in Bangladesh. Get in touch with Bangladesh payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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