Bangladesh
Employer of Record (EOR) in Bangladesh: Hire, Pay, and Stay Compliant
Hire employees in Bangladesh without setting up a local entity. Meteors handles employment contracts, monthly payroll in BDT, tax filing with the National Board of Revenue (NBR), and full compliance with the Bangladesh Labour Act 2006. Starting at $99/employee/month.
Quick facts for hiring in Bangladesh
| Item | Detail |
|---|---|
| Capital | Dhaka |
| Currency | Bangladeshi Taka (BDT, ৳) |
| Official language | Bengali (English widely used in business) |
| Population | 173.5 million (2024 est.) |
| Payroll cycle | Monthly |
| Standard work week | Sunday to Thursday, 8 hours/day, 48 hours/week |
| Minimum wage | BDT 12,500/month (garment sector, 2023 revision). BDT 1,500/month for sectors without industry-specific rates. |
| Income tax (resident) | Progressive, 0% to 25% |
| Employer statutory cost | ~8.3% of salary (provident fund, gratuity accrual, WPPF where applicable) |
| VAT | 15% standard rate |
| Meteors EOR fee | Starting at $99/employee/month |
Why companies hire in Bangladesh
Bangladesh is one of the fastest-growing economies in South Asia. GDP growth averaged 6.5% over the last decade. The country has the 8th largest labor force globally, with over 70 million workers.
Three things make Bangladesh attractive for foreign employers.
Cost. A mid-level software developer in Dhaka earns $1,000 to $1,500/month. The same role in London costs $5,000 to $8,000. Bangladesh ranks among the lowest-cost hiring markets in the world for English-speaking tech talent.
Talent pool. Bangladesh produces over 600,000 university graduates annually. IT services, software development, customer support, and back-office operations are the fastest-growing sectors for remote and international hiring.
Time zone. Bangladesh Standard Time (BST, UTC+6) overlaps with both European and Asian business hours. Teams in Dhaka can collaborate with London in the morning and Singapore in the afternoon.
The challenge: hiring in Bangladesh without a legal entity is complicated. You need to register with the Registrar of Joint Stock Companies and Firms (RJSC), open a local bank account, file with the National Board of Revenue (NBR), and comply with the Bangladesh Labour Act 2006 (amended by the Labour Amendment Ordinance 2025). That process takes 3 to 6 months and costs $5,000 to $10,000 on average.
An Employer of Record (EOR) in Bangladesh removes all of that.
What is an Employer of Record (EOR) in Bangladesh?
An Employer of Record in Bangladesh is a company that legally employs workers on your behalf. You manage the person’s day-to-day work. The EOR handles everything else: compliant employment contracts, monthly payroll, tax withholding, statutory benefits, and employer registration with Bangladeshi authorities.
Meteors is a Bangladesh-based EOR. We use in-house teams (not third-party partners) in Dhaka to manage your employees. Every payroll cycle is verified by licensed Chartered Accountants. Every employment contract is reviewed against the current Bangladesh Labour Act.
Here’s how responsibility splits between you and Meteors:
| You | Meteors |
|---|---|
| Find and select the employee | Draft a compliant employment contract under the Bangladesh Labour Act, 2006 (as amended up to 2026) |
| Define the role, responsibilities, and salary | Register the employee with relevant Bangladeshi authorities |
| Manage daily work, tasks, and performance | Process monthly payroll in BDT with correct tax withholding (TDS) |
| Decide on promotions, raises, termination | Calculate and disburse festival bonuses, gratuity, provident fund |
| Set working hours and expectations | File employer tax returns with the NBR |
| Approve leave requests | Handle onboarding, offboarding, and severance calculations |
Ready to hire your first employee in Bangladesh?
Send us the role and salary. We’ll return the full cost within 24 hours.
How Meteors EOR works in Bangladesh
You share the role details. We send the full cost within 24 hours.
Tell us the country (Bangladesh), the role, and the monthly salary. We’ll calculate the total employment cost: gross salary, employer taxes, statutory contributions (provident fund, gratuity accrual), festival bonuses, and our EOR fee. You’ll get a single number. No hidden charges.
We draft a compliant contract. Your hire signs.
Our Meteors Compliance-First EOR Framework generates employment contracts mapped to the Bangladesh Labour Act, 2006 (as amended up to 2026) and Bangladesh Labour Rules 2015. Every contract covers:
- Designation and job description
- Monthly salary in BDT
- Working hours (8 hours/day, 48 hours/week max)
- Leave entitlements (annual, sick, casual, festival)
- Probation period (3 months for non-clerical, 6 months for clerical workers)
- Notice period (120 days for permanent monthly-rated workers, 60 days for others)
- Termination conditions and severance calculations
Contracts are drafted in English and Bengali as required. We send the contract within 1 to 3 business days of receiving all information.
Payroll runs. Every month. On time.
Our Meteors Payroll Accuracy System processes monthly payroll in Bangladeshi Taka. Here’s what happens each cycle:
- Gross-to-net salary calculation
- Income tax withholding (Tax Deducted at Source) per NBR progressive rates
- Provident fund contribution (employer + employee, where applicable)
- Gratuity accrual calculation
- Net salary transfer to the employee’s local bank account
- Tax remittance to the National Board of Revenue
- Payslip generation and record keeping per Bangladesh Labour Act requirements
You get one invoice in USD, EUR, or GBP. The invoice shows the employee’s gross salary, employer-side statutory costs, and the Meteors service fee. One line item. One payment.
Employment law in Bangladesh: what your EOR handles
Working hours and overtime
No adult worker can be required to work more than 8 hours per day or 48 hours per week. The total weekly maximum, including overtime, is 60 hours. Overtime pay is twice the ordinary rate of basic wage plus dearness allowance.
Meteors tracks working hours and calculates overtime pay according to the Bangladesh Labour Act, 2006 (as amended up to 2026).
Probation periods
Clerical workers: 6 months. All other workers: 3 months. Skilled workers can have probation extended by 3 additional months if the employer can’t assess work quality in the initial period.
After completing probation, the employee becomes permanent. Permanent status triggers stronger protections: longer notice periods, gratuity entitlements, and provident fund eligibility.
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Annual (earned) leave | 1 day per 18 working days. Avg. 12-13 days after first year. |
| Casual leave | 10 days per year (full pay) |
| Sick leave | 14 days per year (full pay, with medical certificate) |
| Festival holidays | 13 days per year (selected by employer from national holiday calendar) |
| Maternity leave | 16 weeks (8 weeks before, 8 weeks after delivery) at full pay |
Festival bonuses (mandatory)
Any employee who completes 1 year of continuous service is entitled to 2 festival bonuses per year. Each bonus equals 1 month’s basic salary. These are a statutory requirement under the Bangladesh Labour Act, not a discretionary perk.
Meteors calculates and disburses both festival bonuses as part of the standard payroll cycle.
Gratuity
Gratuity is an employer-funded obligation. The employee contributes nothing. Current calculation: 30 days’ wages per completed year of service for workers not in a provident fund.
Provident fund
The Bangladesh Labour Act, 2006 (as amended up to 2026) makes provident fund mandatory for factories with 100+ workers. Contributions are typically 7% to 8% of basic salary (employer and employee each). Meteors handles enrollment, contribution calculation, and remittance.
Workers’ Profit Participation Fund (WPPF)
Companies with paid-up capital of BDT 1 crore or permanent assets of BDT 2 crores must contribute 5% of annual net profits to a Workers’ Profit Participation Fund. No employee contribution required.
Income tax in Bangladesh
Bangladesh operates a progressive personal income tax system administered by the National Board of Revenue (NBR). Employers are responsible for withholding Tax Deducted at Source (TDS) from each salary payment.
Tax rates for general taxpayers (FY 2026-27)
| Annual taxable income (BDT) | Tax rate |
|---|---|
| First BDT 4,00,000 | 0% |
| Next BDT 3,00,000 | 10% |
| Next BDT 4,00,000 | 15% |
| Next BDT 5,00,000 | 20% |
| Next BDT 20,00,000 | 25% |
| On balance | 30% |
| Non-resident non-Bangladeshi on total income | 30% |
Higher exemptions apply for: Women and senior citizens (65+) get a tax-free threshold of BDT 450,000. Disabled persons and third gender individuals get a tax-free threshold of BDT 5,25,000.
Minimum tax: BDT 1,000 for a new taxpayer, BDT 5,000 for an existing taxpayer.
Meteors handles TDS calculation and remittance as part of every monthly payroll run. We file employer tax returns with the NBR on schedule.
Termination and offboarding in Bangladesh
Termination in Bangladesh carries significant obligations. The notice periods are among the longest in the region.
Notice periods
| Worker type | Notice period |
|---|---|
| Permanent monthly-rated worker | 120 days (or payment in lieu) |
| Permanent non-monthly-rated worker | 60 days (or payment in lieu) |
| Temporary monthly-rated worker | 30 days |
| Temporary non-monthly-rated worker | 14 days |
Severance and compensation
A terminated permanent employee is entitled to compensation of 30 days’ wages per completed year of service, or gratuity, whichever is higher.
Summary dismissal (without notice)
An employer can dismiss without notice only if the worker is convicted of a criminal offense or found guilty of misconduct after a proper inquiry.
Meteors manages the full termination process: notice calculation, severance payment, gratuity settlement, leave encashment, final salary, and de-registration from local authorities.
Meteors vs setting up a Bangladesh entity
| Factor | Meteors EOR | Local entity |
|---|---|---|
| Setup cost | $0 (starting at $99/employee/month) | $5,000 to $10,000 (incorporation, BIDA approval, bank account) |
| Time to first hire | 1 day | 3 to 6 months (branch/liaison offices need BIDA approval: add 4-6 weeks) |
| Ongoing compliance | Handled by Meteors (in-house team in Dhaka) | You hire local HR, legal, and accounting staff or multiple vendors |
| Legal liability | Meteors carries employer liability | Your entity carries all liability |
| Monthly admin | One invoice in USD, EUR, or GBP | Manage payroll, TDS filing, WPPF, provident fund, leave tracking, festival bonuses yourself |
| Exit flexibility | Offboard employees, exit market, no wind-down | Closing a Bangladesh entity requires regulatory filings, tax clearances, and can take months |
An EOR makes sense when you’re hiring 1 to 50 employees, testing the Bangladesh market, or need someone working within weeks. Entity setup makes sense when you have a large permanent team and the operational scale to justify the infrastructure.
EOR vs PEO in Bangladesh: what’s the difference?
An Employer of Record (EOR) is the legal employer. You don’t need to set up any entity in Bangladesh. Meteors signs the employment contract, runs payroll, files taxes, and carries employer liability. You manage the employee’s work.
A Professional Employer Organization (PEO) is a co-employment model. You still need your own registered entity in Bangladesh. The PEO handles HR administration and payroll processing, but legal employer obligations stay with your company.
For foreign companies without an existing Bangladeshi subsidiary, EOR is the right model. PEO is only relevant if you’ve already incorporated in Bangladesh and want to outsource HR operations.
How to choose the best Employer of Record provider in Bangladesh
Not all EOR providers in Bangladesh work the same way. Some own their entity. Some use third-party partners. Some process payroll in-house. Some outsource it. Here’s what to check before you sign.
Own entity vs third-party network. Ask whether the EOR operates through its own registered entity in Bangladesh or subcontracts to a local partner. Third-party arrangements add cost, create communication delays, and reduce your control over employee experience. Meteors operates through our own entity in Dhaka.
In-house payroll vs outsourced. Bangladesh payroll involves festival bonus calculations, gratuity accrual, provident fund contributions, WPPF obligations, and TDS withholding across progressive tax slabs. Ask who actually runs payroll. If it’s outsourced, errors get harder to trace. Meteors processes every payroll cycle with in-house licensed Chartered Accountants.
Labour Act amendment tracking. The Labour Amendment Ordinance 2025 proposes changes to festival leave, maternity leave, and gratuity calculations. Ask your provider how they track these changes and how quickly they update employment terms when amendments take effect.
Clear pricing. Some EOR providers quote a low monthly fee but add charges for onboarding, offboarding, contract amendments, or currency conversion. Ask for a complete cost breakdown upfront. Meteors charges a flat rate starting at $99/employee/month. No onboarding fees. No hidden charges.
Local presence. Bangladesh has specific requirements around bilingual contracts, festival bonus timing, and NBR filing deadlines. Ask whether the provider has staff on the ground in Dhaka or manages everything remotely from another country.
Compare Meteors against your current shortlist
We’ll walk you through our entity, our payroll team, and our full fee structure.
Mistakes foreign employers make when hiring in Bangladesh
1. Missing the 6-month permanent status trigger
An employee who completes 6 months of continuous service automatically becomes permanent under the Bangladesh Labour Act. Permanent status triggers 120-day notice periods, gratuity entitlements, and provident fund eligibility. Foreign employers who treat this as optional face legal exposure at termination.
2. Treating festival bonuses as discretionary
Two festival bonuses per year (each equal to 1 month’s basic salary) are legally required for employees with 1+ year of service. Omitting them puts you in breach of the Bangladesh Labour Act.
3. Underestimating notice periods
120 days is the statutory notice period for permanent monthly-rated workers, or payment in lieu. That’s 4 months. Most European and US employers expect 30 to 90 days. The surprise costs real money when you need to restructure quickly.
4. Not accruing for gratuity from day one
Gratuity accrues from the start of permanent employment. The employee pays nothing. If you don’t accrue from the beginning, you face a lump-sum liability at termination that can equal months of salary.
5. Assuming employees self-manage tax
In Bangladesh, the employer withholds and remits income tax (TDS) to the National Board of Revenue. The employee doesn’t do it. Foreign employers used to self-assessment markets often miss this obligation entirely.
Who hires in Bangladesh through Meteors?
Tech companies accessing South Asian engineering talent. Small to mid-sized SaaS and software companies in Europe and the US hire backend developers, QA engineers, and product specialists in Dhaka. A role that takes 3 months to fill in Berlin or London often fills in weeks in Bangladesh.
E-commerce and digital businesses building operations teams. Companies building customer support, content, and back-office functions in Bangladesh for cost efficiency and English-proficient talent. Typical team size: 5 to 30 employees.
Fintech and green tech SMEs. Companies at the 50-to-300-employee stage hiring specialized finance, compliance, or technical roles in Bangladesh as part of broader international expansion.
NGOs and international organizations. Program managers, field coordinators, and technical specialists hired on compliant local contracts. Organizations that need proper employment structures without internal HR infrastructure in Bangladesh.
Statutory holidays in Bangladesh (2026)
| Date | Holiday | Notes |
|---|---|---|
| February 4 | Shab-e-Barat | Islamic lunar calendar |
| February 21 | Shaheed Day (International Mother Language Day) | Fixed |
| March 17 | Sheikh Mujibur Rahman’s Birthday | Fixed |
| March 19-23 | Eid-ul-Fitr | Islamic lunar calendar |
| March 26 | Independence Day | Fixed |
| April 14 | Bengali New Year (Pohela Boishakh) | Fixed |
| May 1 | May Day (International Workers’ Day) | Fixed |
| May 1 | Buddha Purnima | Lunar calendar |
| May 25-30 | Eid-ul-Adha | Islamic lunar calendar |
| June 25 | Ashura | Islamic lunar calendar |
| August 5 | July Uprising Day | Fixed |
| August 25 | Eid-e-Milad un-Nabi | Islamic lunar calendar |
| September 4 | Shuba Janmashtami | Hindu calendar |
| October 21 | Vijaya Dashami | Hindu calendar |
| December 16 | Victory Day | Fixed |
| December 25 | Christmas Day | Fixed |
Employers select 11 festival holidays from this calendar for their employees (13 under the proposed 2025 amendment). Meteors manages holiday selection and leave tracking.
Get your free Bangladesh cost breakdown
Tell us where you’re hiring and we’ll send you the exact cost per employee: salary, employer taxes, statutory contributions (provident fund, gratuity, festival bonuses), and our EOR fee. No commitment. No sales pitch. Just numbers. We respond within 24 hours.
Takes 30 seconds. No credit card required.
FAQs: Employer of Record in Bangladesh
An Employer of Record in Bangladesh is a company that legally employs workers on your behalf in the country. You manage daily work. The EOR handles employment contracts, payroll in BDT, tax withholding (TDS), statutory benefits, and compliance with the Bangladesh Labour Act 2006. You don’t need a local entity to hire.
Meteors EOR fees start at $99/employee/month. The total cost includes the employee’s gross salary, employer statutory contributions (provident fund, gratuity accrual, festival bonuses), and the Meteors fee. We send a complete cost breakdown before you commit. No setup fees. No hidden charges.
5 to 14 business days from signed agreement to employee start date. We draft compliant contracts within 5 to 7 business days after receiving all required information. Compare that to 3 to 6 months for entity setup, plus 4 to 6 additional weeks if you need BIDA (Bangladesh Investment Development Authority) approval.
No. Meteors acts as the legal employer in Bangladesh. We register with the Department of Labour, file with the National Board of Revenue (NBR), and manage all employer obligations. You don’t need to incorporate, open a bank account, or appoint a local director.
Meteors handles the full termination process. For permanent monthly-rated workers, the statutory notice period is 120 days (or payment in lieu). We calculate severance (30 days’ wages per completed year), gratuity, leave encashment, and final salary. We also handle de-registration from local authorities.
An EOR is the legal employer. You don’t need a local entity. The EOR handles contracts, payroll, tax, and compliance. A PEO is a co-employment arrangement where you still need your own registered company in Bangladesh. If you don’t have a Bangladeshi subsidiary, EOR is the right model.
Look for a provider based in Bangladesh with its own entity (not a third-party relay). Ask whether payroll is processed in-house by licensed professionals. Check whether onboarding, offboarding, and contract amendments are included in the monthly fee or billed separately. And confirm they track Bangladesh Labour Act amendments so your contracts stay current.