Payroll SaaS

Payroll Software in Bangladesh

Bangladesh Payroll Compliance

Our Payroll Platform in Bangladesh Supports You With

Income Tax & TDS Calculations
Statutory Filings & NBR Reporting

Provident & Welfare Fund Management
Custom API Integrations

Dive deeper into Bangladesh

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Written by Global Payroll Team

Published on September 18, 2026

Last updated September 18, 2026

Expert Reviewed

Payroll Software in Bangladesh

Mercans Payroll Software is a trusted solution for efficient, compliant, and streamlined payroll management in Bangladesh. Designed to address the practical needs of Bangladeshi payroll, our software helps employers manage payroll processing, submissions, deductions, and employee payments with confidence.

Mercans Payroll Software is an all-in-one native SaaS solution for complete digitalization of your payroll process. Supporting businesses across more than 160 countries, it is designed for organizations of all sizes, from single entities to global conglomerates. Its scalable architecture and seamless integration across modules enhance the user experience with an intuitive interface that is both simple and effective.

Trusted the world over

Aligned with Bangladeshi Payroll Regulations

National Board of Revenue (NBR) & Ministry of Labour and Employment

Our payroll software for Bangladesh is designed in alignment with Bangladeshi statutory payroll reporting requirements and employer obligations involving authorities such as the National Board of Revenue (NBR) and the Ministry of Labour and Employment. Built to support established payroll reporting standards, the platform helps businesses navigate Bangladeshi payroll processes with confidence, reducing compliance risk and supporting accurate tax deducted at source (TDS) filings, provident fund contributions, and Workers’ Participation and Welfare Fund calculations under the Bangladesh Labour Act.

Why Choose Mercans

Native SaaS and payroll platform
Trusted by Fortune Global 500 companies and multinationals
Manage all employment types – employees, freelancers, contractors, expats
More than 100 inbound and outbound integrations are available today
Suitable for enterprise businesses
GDPR aligned, SOC 1 & SOC 2 compliant
Supports multiple currencies
ISO 20000 & ISO 27001 Certified
Global presence and multi-country payroll capabilities
OWASP ASVS aligned

Payroll Software Modules

Mercans Payroll Software offers managers and employees a powerful and intuitive online portal designed to streamline and enhance your HR and payroll activities.

Our advanced software modules are equipped with functionality to support efficiency, compliance, and a superior user experience. Learn about them here:

Manager Self Service

Empowers managers to handle HR tasks, including approvals, performance tracking, and employee management, directly from the platform.

Employee Self Service

Provides employees with direct access to their personal information, payroll details, and other HR resources, enhancing transparency and convenience.

Employee Help Desk

Offers a centralized support system for employees to address payroll and HR-related queries, ensuring quick resolution and improved satisfaction.

Data Exchange

Facilitates seamless integration with other systems and platforms through robust data exchange capabilities, streamlining data management and reducing errors.

eDrive and Workflows

Automates and streamlines HR processes with configurable workflows and document management, improving efficiency and compliance.

Time & Attendance

Tracks employee work hours, attendance, and productivity with precision, integrating seamlessly with payroll calculations.

Leave Management

Manages various types of employee leave, including vacation, sick leave, and other absences, with automated approval workflows and accurate tracking.

Loans & Expenses

Handles employee loans and expense claims, ensuring accurate processing and integration with payroll for seamless financial management.

Features of Payroll Software in Bangladesh

Employment Contracts & Collective Labour Agreements

Our payroll software supports Bangladesh’s Labour Act 2006, as amended by the Bangladesh Labour (Amendment) Act 2026, for employment relationships. Where employment extends beyond one month, a written contract must be issued within the first two months. It can be configured for enterprise-level collective labour agreements and tailored employment terms, helping employers manage payroll in line with applicable Bangladeshi labour requirements.

Local Bank Salary Payments

Mercans Payroll Software for Bangladesh supports processing salary payments in Bangladeshi Taka (BDT) through the local banking system, helping employers pay employees accurately and on time in line with Bangladeshi payroll practice.

You have two options:

Option1

Send generated salary payment details from Mercans Payroll Software to Mercans Gateway. The Financial Gateway will then handle the dispatch of payments to Bangladeshi banks, supporting locally compliant BDT processing.

Option2

Prepare and process salary and statutory contribution payments directly through your bank from within Mercans, without the need to download a separate payment file.

Mercans facilitates both options to accommodate your payment processing needs efficiently.

Payroll Reporting

Mercans Payroll Software supports accurate and timely payroll data submission for Bangladeshi employer reporting obligations. It supports payslip generation, retroactive adjustments, special pay runs, and electronic reporting workflows to the National Board of Revenue (NBR), including monthly tax-deducted-at-source (TDS) returns, the annual statement of salary payments, and annual employee return information.

Earnings and Deductions Calculation

Earnings: Global Payroll for Bangladesh allows you to define and manage various types of earnings. This includes base salary components, allowances, regular earnings, and incidental earnings such as the widely practised festival allowance, bonuses and overtime.
Deductions: The software also supports the definition and processing of different types of deductions. Regular deductions can include tax deducted at source (TDS) and provident fund contributions where applicable, while incidental deductions include salary advances, loans, and garnishments.

Taxes

Tax Calculation for Regular and Non-Regular Payments

Bangladesh applies a progressive personal income tax scale to both regular payments, such as base salary and allowances, and non-regular payments, such as festival allowances, bonuses and gratuity, in line with the annual Finance Act.

Personal Income Tax Thresholds and Rates

Following the Finance Act 2026, the general tax-free threshold is BDT 400,000, with higher thresholds of BDT 425,000 for women and senior citizens (65+), BDT 500,000 for persons with disabilities, and BDT 525,000 for gazetted freedom fighters. Income above the relevant threshold is taxed progressively at 10%, 15%, 20%, 25% and 30%. Non-resident foreigners are generally taxed at a flat 30% rate.

Provident Fund Contribution Rates

Under the Bangladesh Labour (Amendment) Act 2026, establishments with 100 or more permanent workers must establish and maintain a provident fund, or alternatively enrol eligible workers in the government’s voluntary Universal Pension Scheme. Where a provident fund applies, both employer and employee typically contribute 7-8% of monthly basic salary, with the employer matching the employee’s contribution.

Workers’ Participation and Welfare Funds

Under Chapter XV of the Labour Act, companies whose paid-up capital reaches at least BDT 1 crore, or whose fixed assets reach at least BDT 2 crore, must pay 5% of the prior year’s net profit into a combination of funds: 80% to a Workers’ Participation Fund distributed to eligible workers, 10% to a Workers’ Welfare Fund, and 10% to the national Bangladesh Workers’ Welfare Foundation Fund, due within 9 months of the close of the accounting year.

Tax Reporting to the National Board of Revenue

Employers must remit tax deducted from employee salaries within approximately 15 days of the relevant month’s end, submit an annual statement of salary payments by 1 September, and submit annual employee return information by 15 April. Individual income tax returns are statutorily due by 30 November each year (Tax Day), though the tax authority has in recent cycles granted filing extensions.

Severance and Lay-off Compensation

Employees resigning after five years of service are generally entitled to compensation of 14 days’ wages per year of service, rising to 30 days’ wages per year of service after ten or more years. The Bangladesh Labour (Amendment) Act 2026 also reduced the minimum service required for lay-off compensation eligibility from one year to three months, with compensation set at a minimum of 50% of basic wages.

Mercans payroll software for Bangladesh efficiently manages and processes provident fund and workers’ welfare fund obligations. This encompasses

Provident Fund Registration

Establishment of a provident fund is mandatory for organisations with 100 or more permanent workers under the Bangladesh Labour (Amendment) Act 2026, or eligible workers may instead be enrolled in the government’s voluntary Universal Pension Scheme.

Contribution Calculation

Calculation of employer and employee provident fund contributions, typically 7-8% of monthly basic salary each, with the employer matching the employee’s contribution.

Workers’ Participation Fund

Calculation of the 5% of prior-year net profit due from qualifying companies, split 80% to the Workers’ Participation Fund, 10% to the Workers’ Welfare Fund and 10% to the Bangladesh Workers’ Welfare Foundation Fund.

e-TIN & NBR Registration

Support for employer and employee electronic Taxpayer Identification Number (e-TIN) registration with the National Board of Revenue (NBR).

Reporting

Integration of provident fund and welfare fund obligations into NBR filings and the reports required by Bangladeshi authorities.

Mercans payroll software for Bangladesh provides comprehensive tools for managing various types of employee absences

Annual Leave

Administration of annual leave entitlements that vary by sector: 1 day for every 18 days worked in most factories and shops, 1 day per 22 days worked in tea plantations, and 1 day per 11 days worked in newspaper establishments.

Sick Leave

Tracking of the statutory 14 days of paid sick leave entitlement per year, which cannot be carried over, subject to medical certification.

Casual Leave

Administration of the statutory 10 days of paid casual leave available to each employee per calendar year.

Maternity Leave

Management of the statutory maternity leave entitlement, increased under the Bangladesh Labour (Amendment) Act 2026 to 120 days in total (60 days before and 60 days after delivery), paid in full.

Festival Holidays

Administration of the 11 paid holidays granted each year for government-declared national and festival holidays.

Overtime Pay Calculation

Our system calculates overtime at double (200%) the employee’s ordinary hourly rate for hourly and salaried workers, in line with Bangladeshi labour requirements.

Bank Integration

Global Payroll for Bangladesh integrates with Bangladeshi banking workflows to support secure and efficient payroll processing by automating BDT payment data and minimizing errors.

Payment Files

The software generates and stores the necessary payment files for Bangladeshi banks, covering BDT salary payments, provident fund contributions, and other deductions and benefits.

Statutory Allowances

Support for the calculation and payment of common statutory and market-practice allowances, including the widely observed festival allowance.

Reporting

Generation of the payment and reporting files required for National Board of Revenue (NBR) and Workers’ Welfare Fund submissions.

Payroll Workflows

Streamlines payroll processes with automated workflows tailored to the needs of Bangladeshi businesses, enhancing efficiency and accuracy.

Provident Fund & Welfare Funds

Mercans payroll software for Bangladesh efficiently manages and processes provident fund and workers’ welfare fund obligations. This encompasses

Provident Fund Registration

Contribution Calculation

Calculation of employer and employee provident fund contributions, typically 7-8% of monthly basic salary each, with the employer matching the employee’s contribution.

Workers’ Participation Fund

e-TIN & NBR Registration

Support for employer and employee electronic Taxpayer Identification Number (e-TIN) registration with the National Board of Revenue (NBR).

Reporting

Integration of provident fund and welfare fund obligations into NBR filings and the reports required by Bangladeshi authorities.

Absence Management

Mercans payroll software for Bangladesh provides comprehensive tools for managing various types of employee absences

Annual Leave

Sick Leave

Tracking of the statutory 14 days of paid sick leave entitlement per year, which cannot be carried over, subject to medical certification.

Casual Leave

Administration of the statutory 10 days of paid casual leave available to each employee per calendar year.

Maternity Leave

Management of the statutory maternity leave entitlement, increased under the Bangladesh Labour (Amendment) Act 2026 to 120 days in total (60 days before and 60 days after delivery), paid in full.

Festival Holidays

Administration of the 11 paid holidays granted each year for government-declared national and festival holidays.

Overtime, Bank and Payment

Overtime Pay Calculation

Our system calculates overtime at double (200%) the employee’s ordinary hourly rate for hourly and salaried workers, in line with Bangladeshi labour requirements.

Bank Integration

Global Payroll for Bangladesh integrates with Bangladeshi banking workflows to support secure and efficient payroll processing by automating BDT payment data and minimizing errors.

Payment Files

The software generates and stores the necessary payment files for Bangladeshi banks, covering BDT salary payments, provident fund contributions, and other deductions and benefits.

Statutory Allowances

Support for the calculation and payment of common statutory and market-practice allowances, including the widely observed festival allowance.

Reporting

Generation of the payment and reporting files required for National Board of Revenue (NBR) and Workers’ Welfare Fund submissions.

Payroll Workflows

Streamlines payroll processes with automated workflows tailored to the needs of Bangladeshi businesses, enhancing efficiency and accuracy.

Payroll Implementation

Mercans’ standard payroll implementation process for Bangladesh is designed to ensure a smooth transition to our payroll system. This process is customized to meet the specific needs of each client, with timelines and deliverables varying based on complexity, data availability, and the number of parallel runs required. Below is an overview of the key steps involved in our implementation process.

Implementation Planning

Assign resources and define roles for the project. Conduct a kick-off meeting to outline objectives and confirm scope. Develop a detailed implementation calendar and plan. Provide a welcome package with project details and contacts. Schedule weekly update calls or emails to monitor progress. Obtain sign-off on the project scope.

Requirements Gathering

Hold workshops to understand client needs and document them. Complete business blueprinting to detail requirements and perform a gap analysis. Define and document any customization needs. Obtain sign-off on requirements to ensure they meet client expectations. Establish a comprehensive list of payroll-specific requirements.

System Configuration

Set up configurations tailored to Bangladeshi payroll requirements. Customize the wage type catalog for relevant pay components. Configure data dictionaries and necessary interfaces for data integration. Adapt reports to meet Bangladeshi regulatory standards. Set up Employee Self-Service (ESS) and Manager Self-Service (MSS) features.

Data Migration

Migrate employee and payroll master data and confirm its accuracy. Obtain sign-off on the migrated data to ensure correctness. Verify data integrity and completeness before proceeding with further steps.

Test Payroll Run

Run simulation payrolls to validate system configurations and perform parallel runs with existing systems. Complete test run sign-offs to confirm accuracy and execute end-to-end testing. Conduct user acceptance testing (UAT) and address any issues found.

Payroll Management Transition & Sign-off

Develop a transition plan for moving to live payroll and provide training for users. Implement a hypercare plan for post-go-live support and an escalation plan for critical issues. Create a fallback plan for potential disruptions and complete a go-live checklist for final sign-off.

Payroll Integration

Mercans Global stands out with its extensive reach and robust integration capabilities. Operating across more than 160 countries, Mercans supports connections with payroll, tax, HR, finance, banking, and compliance ecosystems to help employers maintain efficient payroll operations in Bangladesh.

Recognised Trust Sources

National Board of Revenue (NBR) & Ministry of Labour and Employment

Mercans’ integration capabilities are designed to support Bangladeshi payroll reporting processes and secure data exchange with connected systems, reflecting our commitment to global standards and best practices.

Integration with HCM/ HRMS/ Workforce management platforms

Mercans’ Payroll Software integrates seamlessly with most HCM and payroll software, creating a unified experience between HR administration and payroll processing. Through the Employee Self Service (ESS) feature, employees can directly handle their payroll tasks, such as submitting worked hours or declarations. Once approved, these entries are processed within the payroll system. This efficient integration reduces errors and enhances productivity for both employees and HR administrators.

Custom API Integrations

Mercans provides custom API integrations across diverse industries, including hospitality, catering, theme parks, transport, sports, construction, healthcare, events, promotional sectors, greenhouse horticulture, and fresh produce.

Xero Integration

Integrate Mercans payroll with Xero to sync data, automate HR tasks, and streamline processes. Save time, reduce errors, and focus more on growing your business.

Payroll Reports – Standard, Statutory and Year-End Reports

Mercans’ payroll software is equipped to generate a comprehensive range of reports to support both standard and statutory requirements. These reports provide transparency, accuracy, and ease of integration with financial and regulatory systems.

Mercans Standard Reports

Report	Description
Gross to Net Report	Details employee earnings, taxable wages, employee deductions, employer costs and net pay for each payroll run in Bangladesh.
Payslip	Generates individual payslips showing gross pay, allowances, deductions, tax deducted at source and net pay.
Payroll Register	Provides the employee payroll register used to support Bangladeshi payroll administration and statutory fund calculations.
NBR Tax Filing	Produces the payroll reporting data required for tax-deducted-at-source (TDS) submissions to the National Board of Revenue (NBR).
Annual Payroll Summary	Generates the annual payroll summary for each employee, summarizing total compensation, statutory deductions and other year-end totals.
Bank Payment File (BDT)	Creates a bank-compatible BDT salary payment file according to client or bank specifications for payroll disbursement.

Statutory Standard Reports

Report	Frequency	Description
Monthly TDS Return	Monthly (within 15 days)	Statutory return of tax deducted at source from employee salaries, submitted to the National Board of Revenue (NBR).
Annual Statement of Salary Payments	Annually (by 1 September)	Statutory annual statement detailing salaries paid to employees throughout the year, submitted with the monthly TDS return to the NBR.
Annual Employee Return Information	Annually (by 15 April)	Statutory compilation of employees’ tax filing information, including e-TIN details, submitted to the NBR with the monthly TDS return.
Workers’ Participation & Welfare Fund Report	Annually (within 9 months of year-end)	Statutory reporting of the 5% net-profit contribution due from qualifying companies to the Workers’ Participation Fund, Workers’ Welfare Fund and Bangladesh Workers’ Welfare Foundation Fund.

Year-End Reports

Report	Frequency	Description
Annual Payroll Summary	Annually	Annual employee statement summarizing total compensation, statutory deductions and other required year-end payroll totals.

These detailed reports are designed to support statutory and regulatory requirements, helping ensure efficient payroll management and accurate compliance.

Benefits of Payroll Software

Mercans offers a powerful payroll solution that optimizes payroll administration and HR processes. Here’s how our software benefits your organization:

Streamlined Payroll Processing
Additional Key Features

No External Dependency

Manage payroll directly through our application, eliminating the need for third-party processors.

Integrated HR and Leave Management

Handle payroll, HR tasks, and employee leave requests within one platform, simplifying administrative duties.

Reduced Manual Work

Automate routine tasks to minimize errors and ensure accurate payroll processing.

Customization

Personalize workflows to meet your specific business needs, enhancing efficiency.

Time Savings

Redirect time saved from automation to more strategic activities.

Seamless Integrations

Connect effortlessly with systems and leading HR platforms like SAP Success Factors, Workday, and Oracle for a unified workflow.

Centralized Data Management

Consolidate employee data in one place for easy access, updates, and analysis.

Employee Access

Empower employees with 24/7 access to their personal files.

Mercans’ payroll software provides a comprehensive, secure, and user-friendly solution, streamlining payroll processes and allowing you to focus on your most valuable asset, your people.

24/7 Access

Access payroll data anytime and from any location.

Transparent Pricing

Benefit from a fixed monthly fee plus a per-employee charge with no hidden costs.

Dedicated Support

Get expert assistance and advice to maximize the software’s benefits.

Secure Data Management

Support data protection and integrity with secure online processing and controlled backup practices.

Compliance Assurance

Stay compliant with current fiscal and employment regulations through maintained payroll rules and updates.

Mercans’ payroll software provides a comprehensive, secure, and user-friendly solution, streamlining payroll processes and allowing you to focus on your most valuable asset, your people.

Streamlined Payroll Processing

No External Dependency

Manage payroll directly through our application, eliminating the need for third-party processors.

Integrated HR and Leave Management

Handle payroll, HR tasks, and employee leave requests within one platform, simplifying administrative duties.

Reduced Manual Work

Automate routine tasks to minimize errors and ensure accurate payroll processing.

Customization

Personalize workflows to meet your specific business needs, enhancing efficiency.

Time Savings

Redirect time saved from automation to more strategic activities.

Seamless Integrations

Connect effortlessly with systems and leading HR platforms like SAP Success Factors, Workday, and Oracle for a unified workflow.

Centralized Data Management

Consolidate employee data in one place for easy access, updates, and analysis.

Employee Access

Empower employees with 24/7 access to their personal files.

Additional Key Features

24/7 Access

Access payroll data anytime and from any location.

Transparent Pricing

Benefit from a fixed monthly fee plus a per-employee charge with no hidden costs.

Dedicated Support

Get expert assistance and advice to maximize the software’s benefits.

Secure Data Management

Support data protection and integrity with secure online processing and controlled backup practices.

Compliance Assurance

Stay compliant with current fiscal and employment regulations through maintained payroll rules and updates.

This content was prepared for informational purposes only. As local laws & regulations keep on changing, please consult your tax & legal advisors.

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FAQs

What payroll functions should a SaaS platform support in Bangladesh (e.g., gross to net salary calculation, payslip generation, tax deducted at source, and provident fund contributions)?

Mercans payroll software for Bangladesh delivers end-to-end payroll processing including automated gross-to-net salary calculation, payslip generation, tax deducted at source (TDS) filings, provident fund contributions where applicable, and Workers’ Participation and Welfare Fund calculations for qualifying employers.

How do payroll SaaS solutions ensure compliance with Bangladeshi authorities (National Board of Revenue (NBR), Ministry of Labour and Employment) and statutory reporting obligations?

Mercans supports compliance by keeping pace with Bangladeshi payroll legislation updates, including the Bangladesh Labour (Amendment) Act 2026 and annual Finance Act changes, and streamlining filings and reports to the National Board of Revenue (NBR) and other Bangladeshi authorities.

What employer registration and employee data are required (e.g. company incorporation with the Registrar of Joint Stock Companies and Firms (RJSC), e-TIN registration, provident fund enrolment) and how does payroll software assist with this?

Mercans automates onboarding by securely capturing and managing employer and employee data, including RJSC incorporation details, National Board of Revenue (NBR) e-TIN registration, and provident fund or Universal Pension Scheme enrolment where applicable.

How does payroll software handle specific Bangladeshi components like progressive personal income tax slabs, the new mandatory provident fund threshold, and Workers' Participation and Welfare Fund contributions?

Mercans payroll software automatically applies Bangladesh’s progressive personal income tax slabs based on taxpayer category, tracks the 100-employee mandatory provident fund threshold introduced by the 2026 Labour Act amendment, and calculates Workers’ Participation and Welfare Fund contributions for qualifying establishments.

Can payroll SaaS integrate with Bangladeshi HR and ERP systems and support outsourcing or Employer of Record models?

Mercans offers robust integration capabilities with leading HR and ERP systems, supporting seamless payroll, HR management, and outsourcing models including Employer of Record, for full compliance and efficiency in Bangladesh.