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
The standard working week is from Monday to Thursday from 9:00 am - 5:00 pm
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.
Textiles, Pharmaceutical products, electronics, shipbuilding automotive, bicycle
Dates & Numbers
Official State Name
People's Republic of Bangladesh
Bangladeshi Taka (BDT)
International Dialing Code
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
Employees receive paid sick leave of 14 days
6 months of paid maternity leave and there is no paternity leave
Maternity & Paternity Leave
There are no provisions mandated by law regarding the 13th-month salary
1500Tk per month
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
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
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 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.
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 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 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.
Minimum notice period for terminating an employee
Total number of public holidays
Working hours per week
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.
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
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)
Build the best team and hire top talent compliantly in Bangladesh. Get in touch with Bangladesh payroll outsourcing & PEO specialists for a free consultation!