EOR – Meteors Bangladesh Ltd https://meteorsltd.com Hire, manage, and onboard teams in Bangladesh easily! Sun, 26 Oct 2025 05:38:21 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 https://meteorsltd.com/wp-content/uploads/2023/11/cropped-logo-meteors-32x32.png EOR – Meteors Bangladesh Ltd https://meteorsltd.com 32 32 EOR vs PEO in Bangladesh: Which Model Fits Your Business Best? https://meteorsltd.com/eor-vs-peo-in-bangladesh/ https://meteorsltd.com/eor-vs-peo-in-bangladesh/#respond Sun, 19 Oct 2025 09:59:27 +0000 https://meteorsltd.com/?p=1647 Expanding your business to Bangladesh gives you access to skilled talent, cost advantages, and a growing digital market. But hiring locally can be complicated with legal setup, payroll, and compliance requirements. That’s where Employer of Record (EOR) and Professional Employer Organization (PEO) models can help. They make it easier to hire, manage payroll, and stay […]

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Expanding your business to Bangladesh gives you access to skilled talent, cost advantages, and a growing digital market.

But hiring locally can be complicated with legal setup, payroll, and compliance requirements.

That’s where Employer of Record (EOR) and Professional Employer Organization (PEO) models can help. They make it easier to hire, manage payroll, and stay compliant without setting up a local entity.

The key distinction is that a PEO acts as a co-employer, sharing HR responsibilities with your business, while an EOR becomes the full legal employer, assuming all compliance and liability responsibilities.

In this post, I’ll explain how each model works and help you figure out which one fits your business best.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a service model where a third-party organization becomes the legal employer of your team members, while you continue to manage their day-to-day work and performance.

This allows your company to hire and operate in a new market without setting up a local legal entity, ensuring compliance with local employment laws, payroll, and tax regulations.

In simple terms, EOR allows you to hire full-time employees without opening a local legal entity.

EOR service includes:

  • Drafting and signing local employment contracts
  • Managing monthly payroll and tax deductions
  • Administering statutory benefits and contributions
  • Ensuring compliance with Bangladesh labor laws

EOR solutions are ideal for companies expanding into new regions that want speed and flexibility. It allows global employers to test new markets, hire top local talent, and scale teams without waiting for months of legal setup or facing compliance risks

Example of EOR Solutions for Hiring Bangladeshi Employees

EOR 1

 

 

 

Example:A software company based in Germany wants to hire Bangladeshi developers quickly. Instead of spending months establishing a subsidiary,they use Meteors as their EOR. Meteors legally employs the developers,handles compliance, and the company directly manages their projects.

 

 

 

 

 

Through the EOR partnership, the company benefits from faster onboarding, zero administrative burden, and full compliance with Bangladesh’s tax and labor obligations. This makes EOR a strategic choice for international companies hiring in emerging markets.

What is a Professional Employer Organization (PEO)?

A Professional Employer Organization (PEO), on the other hand, operates under a co-employment model. This means your company either already has or plans to establish a legal entity in Bangladesh. 

The PEO partners with you to handle HR administration, payroll processing, and compliance management, allowing you to focus on business growth while ensuring all employment obligations are met locally.

Under a PEO agreement:

  • You remain the legal employer.
  • The PEO manages HR functions such as payroll, benefits, and compliance.
  • Employment responsibilities are shared for greater efficiency and accuracy

PEO services are best suited for established companies that want to focus on scaling while delegating HR complexities to specialists. It ensures your HR operations remain compliant, accurate, and up to date with local regulations without expanding your internal HR capacity.

Example:

A U.K.-based logistics company operates in Dhaka. They utilize Meteors’ PEO service to streamline payroll, manage tax filings, and ensure ongoing compliance, all while keeping all employees under their own company’s name.

Through the PEO arrangement, Meteors manages payroll processing, tax filings, and compliance with Bangladesh labor laws. When new employees joined, Meteors ensured their contracts met local requirements, and all statutory reports were submitted on time.

     EOR vs PEO: The Key Differences

Category EOR (Employer of Record) PEO (Professional Employer Organization)
Legal Employer The EOR becomes the legal employer of your team. Employment is shared between your company and the PEO.
Local Entity Required Not required Required
Best For Companies hiring abroad or testing new markets Businesses already operating or planning to set up locally
Onboarding Time Fast typically within days. Takes longer due to local entity setup.
HR & Compliance Responsibility Fully managed by the EOR, ensuring local compliance Shared between your company and the PEO.
Risk & Liability Handled by the EOR. Shared with your company

In short:
If you’re new to Bangladesh and want to hire quickly without legal setup, EOR is your ideal path.

If you already have an office in Bangladesh and need HR and compliance support, PEO is the smarter choice.

Which Model is Right for You?

Choosing between an EOR and a PEO depends on your business goals, your presence in Bangladesh, and your growth stage.

Choose EOR if you:

  • Don’t have a legal entity in Bangladesh
  • Want to hire remote or contract employees quickly
  • Need full compliance support from day one
  • Want to reduce operational and legal risks

Choose PEO if you:

  • Already operates in Bangladesh
  • Need help managing payroll, HR, and compliance efficiently
  • Want to stay focused on growth while experts handle admin
  • Plan to build long-term local operations

Why Work with Meteors for EOR & PEO

At Meteors, our local compliance expertise is paired with an approach tailored to the needs of international businesses expanding into Bangladesh.

Whether you’re hiring your first employee or managing a team, our experts streamline onboarding, payroll, and compliance.

Here’s what sets Meteors apart:

  • Local HR & Legal Experts: We thoroughly understand Bangladesh’s employment laws.
  • CPA-Backed Payroll & Finance: Precision and accountability in every payslip.
  • Global Compliance Standards: ISO and GDPR-aligned data and employment practices.
  • Fast, Seamless Setup: Onboard new hires in days, not months.
  • Transparent Pricing: No hidden fees, no surprises, just efficient service.

We don’t just handle HR tasks; we empower your business to hire locally and grow globally with confidence.

The Benefits of Choosing the Right Provider

Working with a trusted EOR or PEO provider like Meteors helps you:

  • Stay 100% compliant with Bangladesh’s evolving labor and tax laws
  • Save time and cost by avoiding entity setup and HR overhead
  • Minimize risk through expert compliance handling
  • Improve employee experience with reliable payroll and benefits
  • Focus on growth while Meteors handles HR complexities

Whether your goal is to expand, test the market, or scale operations, we make the process simple and secure.

Final Thoughts

Expanding into Bangladesh offers huge opportunities, but hiring locally comes with its own set of challenges. From understanding employment laws to managing payroll and staying compliant, the process can be complex for global teams.

Whether you choose an EOR or PEO model, the right approach can save time, reduce risk, and help you build your team efficiently. At Meteors, we help companies navigate these challenges with practical solutions and local expertise. Book a free consultation now.

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Employer of Record (EOR) in Bangladesh: Cost-Effective Expansion Solution https://meteorsltd.com/employer-of-record-in-bangladesh/ https://meteorsltd.com/employer-of-record-in-bangladesh/#respond Thu, 28 Mar 2024 14:14:25 +0000 https://meteorsltd.com/?p=1068 To navigate the country’s complex payroll, taxation, and compliance processes, businesses that wish to enter the Bangladeshi market will require the aid of local human resources specialists. In this case, partnering with an Employer of Record (EOR) is the smartest thing to do. With the help of an EOR, you can efficiently oversee and recruit […]

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To navigate the country’s complex payroll, taxation, and compliance processes, businesses that wish to enter the Bangladeshi market will require the aid of local human resources specialists. In this case, partnering with an Employer of Record (EOR) is the smartest thing to do. With the help of an EOR, you can efficiently oversee and recruit personnel without the need to establish a local presence in the country. This strategy adeptly manages the intricacies and difficulties that are associated with international expansion. So, for you to get ahead in the game, you must first understand the fundamentals of Employer of Record (EOR) in Bangladesh; which we have addressed in this blog for you! 

A Comprehensive Guide to Employer of Record (EOR) in Bangladesh

An Employer of Record (EOR) can streamline the employment and compensation processes for employees in Bangladesh. Even in the absence of a local entity in Bangladesh, EOR services ensure adherence to regulations, the pay of your employees, and the provision of appropriate benefits. This blog discusses everything you need to know about Employer of Record (EOR) in Bangladesh. 

Employer of Record (EOR)

An Employer of Record (EOR) is a third-party entity that assumes all employer-related obligations and duties on behalf of your company and becomes the legal employer of your staff. An EOR is entirely accountable for all employment-related aspects, such as payroll, taxes, benefits, and compliance. EOR may be situated in the same nation as the enterprise for which they provide labor, or in a foreign nation with different employment regulations. An EOR provides services such as crafting and managing employment contracts that adhere to local regulations, supervising all tax and payroll withholding, providing timely compensation for supported personnel and statutory and comprehensive benefits, maintaining adherence to termination and offboarding protocol, ongoing assistance with respect to regional labour laws and regulations among other services.  

Why You Should Hire in Bangladesh Using EOR?

Bangladesh’s economy has grown rapidly because of its highly skilled labour force. Due to its strategic geographical location, the nation serves as an economic hub. Furthermore, Bangladesh maintains industry-specific pay boards that set minimum rates for every business. To preserve the rights of its workforce, Bangladesh has robust labour laws that safeguard employees’ rights. Bangladeshi regulations require that the employer create an employment contract that includes all relevant information, including the employee’s pay, benefits, and rates of compensation. All businesses and workers are subject to these laws, regardless of nationality. While ensuring compliance in Bangladesh is not too difficult, it can be difficult for a foreign employer. Therefore, it’s ideal to work with an EOR to assist you in staying compliant with local labour laws. 

Employment Contracts

Working Hours

  • The Bangladesh Labor Act of 2006 limits the amount of time employees can work in any establishment to eight hours per day and forty-eight hours per week. Every day, an extra two hours of overtime are allowed. 
  • A worker’s total hours can’t go over 60 hours in a week. 
  • Any employee working in a commercial or industrial organization has the right to one and a half days of rest per working day. Workers in a factory have the privilege of one day. 
  • Women are not allowed to be at work between 10 p.m. and 6 a.m. 

Bonuses 

Employees who finished their 12 months of employment must be paid two festival bonuses per year, equal to the standard wage amount. 

Compensation 

  • The minimum monthly wage in Bangladesh varies according to industry and employee skill level.  
  • In the ready-made clothing sector, the minimum salary for an apprentice is 8,000 taka per month. 
  • Apprentices in the Export Processing Zone are paid a minimum of Tk. 4,480. 
  • A worker receives 200% of their regular compensation as overtime. 
  • Wages must be paid within seven days of the designated payment period. 

Probation 

According to Section 4(8) of the Labour Act, the probationary period’s length is determined by the employee’s profession. Probation lasts for six months for employees in administration and three months for other employees. If the service provided during the first three months of probation is deemed inadequate, the probationary period can be extended. After the probationary period is over, the employee is eligible for a permanent position at the company. 

Termination 

  • When terminating permanent employees, employers are required to give 120 days’ notice. For temporary employees, this notice must be 30 days. 
  • The employer has thirty days from the date of termination to pay all termination benefits. 
  • If an employee wishes to leave, they must give their employer sixty days’ notice. If less time is provided, the employer must be paid for the notice period. When an employee is hired temporarily, they are required to offer thirty days’ notice. 
  • When an employee ends their employment, they are entitled to the following benefits: 30 days of pay for every year they have worked over ten years; and 14 days of pay for every year they have worked over five but less than ten. 

Employee Protection 

The labour laws and regulations of Bangladesh establish the framework for the majority of implemented regulations pertaining to the safeguarding of workers’ rights. Additionally, the Bangladeshi constitution guarantees equality for all citizens; therefore, discrimination based on caste, class, or religion is prohibited. A minor under the age of 14 is not permitted to be employed in a factory, per the labor law. Additionally, it provides a thirty-minute break for every five-hour shift and a one-hour break for every six-hour shift. 

Employee Benefits and Paid Leave

Holidays

Date

Occasion for Paid Holiday 

February 21 Language Martyrs’ Day 
February 26 Shab-E-Barat
March 17 Sheikh Mujibur Rahman’s Birthday 
March 26 Independence Day
April 5 Jumatul Bidah
April 6 Laylat-al Qadr
April 9,10,11 Eid-Ul-Fitr
April 14 Bengali New Year’s Day
May 1 May Day 
May 23 Buddha Purnima 
June 16,17,18 Eid-Ul-Adha
July 17 Ashura
August 15 National Mourning Day 
August 26 Janmashtami
September 16 Eid-e-Milad-un-Nabi
October 13 Vijaya Dashami
December 16  Victory Day 
December 25 Christmas Day 

On eleven holidays, all employees are entitled to full holiday pay. An employee will be compensated with two additional holidays with full pay and an alternate day off if they have to work on a holiday. 

Vacation

  • Workers who have worked for a company for a full year are eligible for fully paid annual leave. 
  • Employees are allowed to carry forward up to 60 days of unused yearly leave. 
  • For every eighteen days of labor, industrial or commercial establishments,  manufacturers, and transport service providers are entitled to one day of leave. 
  • Employers in EPZs are subject to different regulations, they are required to provide one day off to their staff for every 22 days of work.
  • Tea plantation workers receive one day off for every twenty days of work. 
  • Newspaper employees get one day off for every eleven days they work. 
  • For workers who are under the age of 18, there is one day off for every fourteen days of work. 

Sick Leave 

All employees, with the exception of newspaper employees, are entitled to 14 days of paid sick leave. For sick leave to be granted, employees must present a medical certificate. For one-eighteenth of their working hours, newspaper employees are eligible for half-paid sick leave. 

Maternity Leave

Female employees who have worked for the company for six months or longer are eligible to receive up to eight weeks of paid leave, both before and after the birth of their child. If they have two or more children, they get more maternity leave but not maternity compensation. Women who have not worked for six months can receive unpaid leave. Additionally, they are not permitted to work for eight weeks following the delivery of their child. 

Employees in EPZs who are pregnant are granted a leave entitlement of six weeks before the due date and an additional six weeks following the delivery of the child. During maternity leave, a regular salary is provided. Employers in EPZs are only permitted to grant maternity benefits to a single employee twice if the leave is not utilized for more than three years. 

Health Coverage Benefits

    • If an employee gets hurt while working, the employer is in charge of overseeing and providing the injured worker’s medical care. According to the Bangladesh Labor Rules 2015, the employee has to report the accident to the Labor Court. After receiving notice, the employee has three days to have a registered medical professional examine them at the employer’s expense. 
    • Unless the employer can demonstrate otherwise, the diagnosis of an occupational sickness that the employee contracted while working for the company for more than six months is to be regarded as a workplace injury by accident. The employee is required to continue receiving paid treatment until the illness is completely cured. 
    • The Labour Act of 2006 gives information about medical care for employees as well as compensation, including the amount and mode of payment. 

Other Benefits 

Workers in Bangladesh are eligible for a pension, supported by government tax revenues as well as workers’ compensation ensured by mandatory employer insurance. A significant proportion of employee benefits are covered by employee social costs.

Employer Taxation in Bangladesh 

  • In Bangladesh, the fiscal year starts on 30th June every year.
  • Corporations are obligated to pay a corporate tax of 32.5% in Bangladesh. 
  • Withholding Tax (For Non-Residents)
  • Dividends- 20%
  • Interest Income- 20%
  • Employers in Bangladesh are subject to a progressive payroll tax that ranges from 10% to 30%.
  • While social security is not a recognized concept in Bangladesh, specific companies are obligated to contribute 5% of their profits to the Workers Profit Fund. 
  • Reimbursement is not feasible due to the absence of the requisite legislation. 

Employee Taxation in Bangladesh 

The following table summarizes the income tax rates in Bangladesh. 

Annual Salary (BDT)

Income Tax Rate 

O – 2,50,000
2,50,001 – 6,50,000 10%
6,50,001 – 1,150,000 15%
1,150,001 – 1,750,000 20%
1,750,001 – 4,750,000 25%
4,750,001 and above 30%

 

However, foreign residents are obliged to pay income tax at a 30% flat rate.

Also, Bangladesh lacks a functioning social security system; consequently, Bangladeshi employees do not remit any social security contributions to the government. Furthermore, consumers must remit a sales tax of 15% when acquiring goods and services in Bangladesh. 

Standard Employer of Record Service

Employer of Record in Bangladesh streamlines and accelerates the business expansion process in the country. Collaborating with an EOR facilitates the efficient administration of employee compensation, employment contracts, tax information, and work permits. The following are some of the standard terms of employer of record service in Bangladesh. 

  • Any business operating in Bangladesh is required to pay a 15% GST to the government. 
  • The only accepted currency is the Bangladeshi Taka (BDT).
  • For desk employment, the minimum length of service is six months. For all other positions, it is three months.
  • The essential information and documents include critical personal information, a copy of the passport, bank account information, a NIC card, and if applicable, a TIN. 
  • The essential information and documents for outsiders are personal information, organizational duties, technical and academic credentials, curriculum vitae, copy of passport, bank information, passport-sized photographs, medical report, and police verification.   

Meteors is the ideal collaborator for international business expansion, as it guarantees complete adherence to local legal requirements while optimizing operational activities. Collaborating with a regional EOR, such as Meteors’ EOR solution, to employ and manage personnel without a local presence will be a beneficial move for you. We can streamline the onboarding process of your Bangladeshi employee along with helping you with other responsibilities with our EOR solution. 

Summary

An Employer of Record in Bangladesh grants you a competitive advantage in expanding your business in Bangladesh. An EOR service facilitates the rapid recruitment of local personnel, manages their payroll, and undertakes an array of human resources obligations in your place. This blog first explores what an EOR entails and why you should hire in Bangladesh using an EOR service. Then it covers employment contracts, employee benefits and paid leave, and taxation for employers and employees in Bangladesh. Finally, it describes the standard employer of record services. Now, if you are looking for an expert EOR service provider in Bangladesh, Meteors will be the right choice for you! 

Frequently Asked Questions (FAQs)

Why an Employer of Record be necessary for a company expanding in Bangladesh?

The direct employment of employees in a foreign nation such as Bangladesh may present complexities stemming from distinct labor legislation, tax policies, and administrative obligations. By streamlining this procedure, an EOR mitigates legal risks and ensures compliance with local laws.

What services does an Employer of Record offer?

EOR services generally comprise HR administration, payroll processing, benefits administration, and conformance with local labor legislation, amongst other tasks pertinent to the employment of Bangladeshi employees.   

Is using an Employer of Record in Bangladesh financially advantageous?

Due to the lack of necessity for a local presence, complicated legal processes, and hiring local HR personnel, using an EOR can frequently be less expensive than creating a legal corporation or subsidiary in Bangladesh. 

How can I select the best Employer of Record in Bangladesh?

You should consider the EOR’s reputation, range of services provided, track record, customer support, and cost-effectiveness when making your selection. Before making a final decision, it is also a good idea to request references and carefully review the terms of the service agreement.

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Hire Employees in Bangladesh: Step-by-Step Process https://meteorsltd.com/hire-employees-in-bangladesh/ https://meteorsltd.com/hire-employees-in-bangladesh/#respond Thu, 28 Mar 2024 13:52:27 +0000 https://meteorsltd.com/?p=1062 Bangladesh maintains a highly permissive foreign direct investment among South Asian countries, distinguished by its unrestricted exit policy, easy transfer of incomes and profits, and complete foreign ownership. The nation provides foreign investors with strong infrastructure facilities and logistical support, particularly in the RMG sector. More so, the country offers a wealth of talent spanning […]

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Bangladesh maintains a highly permissive foreign direct investment among South Asian countries, distinguished by its unrestricted exit policy, easy transfer of incomes and profits, and complete foreign ownership. The nation provides foreign investors with strong infrastructure facilities and logistical support, particularly in the RMG sector. More so, the country offers a wealth of talent spanning multiple sectors with a competent and diverse labour force. However, the process of hiring employees can be difficult and overwhelming. This is why, we have broken down the process of hiring employees in Bangladesh step-by-step along with the essentials of the hiring process.   

A Step-by-Step Guide to Hiring Employees in Bangladesh

Despite the high prospects of hiring employees in Bangladesh, the process of hiring employees in Bangladesh is not as easy as it seems. To hire employees in Bangladesh, you need to have an understanding of the essential factors, cost, and the process of hiring employees in Bangladesh. This blog explores the step-by-step process of hiring employees in Bangladesh. 

Essential Factors to Know Before Hiring Employees in Bangladesh 

You need to note the following factors of Bangladesh’s labour laws and employment procedure if you wish to acquire comprehensive knowledge regarding hiring employees in the country. 

Employment Contracts

Employment contracts hold significant importance within the recruitment procedure in Bangladesh. Employer and employee terms of employment are governed by a contractual arrangement. The parameters of the agreement should conform to the Bangladesh Labor Act 2006 and the Bangladesh Labor Rule 2015. In the absence of a written employment contract, a letter of employment is required. The employment contract must include working hours, nature of work, job title, salary, bonuses, compensation, probation, and termination. 

  • Working Hours: The Bangladesh Labor Act 2006 imposes a daily and weekly maximum of forty-eight hours of work per employee in any establishment. An additional two hours of overtime are permitted daily. An employee is limited to a maximum of 60 hours in a week. 
  • Bonuses and Compensation: Annually, employees who have completed a 12-month probationary period are entitled to two festival bonuses in the amount of the standard salary. The minimum wage in Bangladesh differs from sector to sector. The minimum salary of an apprentice in the RMG industry is Tk. 8,000 per month. The minimum compensation for apprentices in the Export Processing Zone is TK. 4,480 per month.  A worker accrues 200% of their regular compensation in overtime. The due date for payment of wages is seven days after the specified payment period. 
  • Probation: Section 4(8) of the Labor Act stipulates that the duration of the probationary period is contingent upon the occupation of the employee. Probation terms for administrative personnel are six months, while all other employees are subject to three months. Provision of inadequate service during the initial three months of probation may result in an extension of the probationary period. Once the probationary period concludes, the employee is deemed qualified to be offered a permanent position with the organization. 
  • Termination: If an employer wants to fire a permanent employee, they have to provide them 120 days’ notice. The notice period provided for temporary employees is thirty days. All termination benefits are due thirty days after the date of termination from the employer.

An employee is required to provide their employer with sixty days’ notice before their departure. A notice period payment is due to the employer in the event that less time is provided. Temporary employees are obligated to provide a notice period of thirty days. Following the termination of their employment, they will receive 30 days of pay for each year worked more than ten years, and 14 days of pay for each year worked over five years but less than ten. 

Work Permits

Working in Bangladesh requires all foreign nationals to possess a valid work permit. The E-visa issued by the Embassy of Bangladesh is valid for three months. Employers in Bangladesh are additionally required to register with the appropriate government authority before hiring foreign nationals. Three governmental entities in Bangladesh are principally concerned with the issuance of work permits to them. Foreign labour in the export promotion zones is regulated by the Bangladesh Export Processing Zones Authority (BEPZA). Employment permits for foreign nationals working in industrial enterprises situated beyond the processing zone are issued by the Board of Investment (BOI). Work permits for foreign nationals in non-governmental organizations are issued by the NGO Affairs Bureau of Bangladesh (NGOAB).

Foreign employers seeking to issue work permits for their personnel are required to submit to the Bangladeshi Embassy a letter of employment and a confirmation letter of concurrence from the relevant government authority. Prospective employers are required to submit an E-visa recommendation application to the BOI on behalf of their foreign employees who fall within its jurisdiction. 

Employee Benefits

Employee benefits are an essential component of the recruiting procedure. Typical examples of such benefits comprise paid leaves, maternity leave, health insurance, compensations, and so forth. 

  • Paid Leave: Employees who have completed a complete year of service are entitled to completely paid annual leave. An employee may carry forward a maximum of sixty days of unused annual leave. One day of leave is granted to industrial establishments, transportation service providers, and manufacturers for every eighteen days of labour. Employees in EPZs must get a day of leave for every 22 days of work. One day off is granted to tea plantation employees for every twenty days of work. Newspaper employees are granted one day of leave for every eleven days of work. Every fourteen days of work is followed by one day off for employees under the age of 18. Also, full government holiday pay is provided to all employees. If an employee is required to work on a holiday, they will be granted two additional holidays with complete pay and an additional day off.
  • Sick Leave: Except for those employed by newspapers, all employees are granted a period of fourteen days of paid medical leave. In order to be granted sick leave, employees are required to provide a medical certificate. Newspaper employees are eligible to take a half-paid medical leave for one-eighteenth of their working hours. 
  • Maternity Leave: Women who have been employed by the organization for a minimum of six months are eligible to take up to eight weeks of paid leave, beginning from the day following the delivery of their child. They are granted additional maternity leave but not maternity compensation if they have two or more children. Women who have not worked for six months are eligible for unpaid leave. More so, they are prohibited from working for a period of eight weeks after the birth of their infant. Pregnant employees in EPZs are granted a leave entitlement of six weeks prior to the due date, with an additional six weeks of leave granted after the child’s delivery. An employee receives a routine salary throughout maternity leave. Maternity benefits may only be granted twice to a single employee by employers in EPZs, provided that the leave remains unused for a period not exceeding three years.

 

  • Health Coverage: The responsibility of supervising and arranging medical treatment for an injured worker falls within the employer-employee relationship in Bangladesh. The employee is required by the Bangladesh Labor Rules 2015 to notify the Labor Court of any workplace accident. The employee is entitled to a free medical examination by a registered medical professional for three days following the receipt of notification.

In the absence of contrary evidence from the employer, an occupational sickness diagnosis that the employee acquired during employment for the company for a duration exceeding six months shall be considered an unintentional injury in the workplace. The employee must receive paid for treatment until the illness reaches a state of complete recovery. The Labor Act of 2006 provides details regarding employee compensation, including the quantity and method of payment, in addition to medical care. 

Taxation 

In Bangladesh, corporations are required to remit a corporate tax amounting to 32.5%. Bangladesh imposes a progressive payroll tax on employers, which ranges from 10% to 30%. Although social security is not officially acknowledged in Bangladesh, certain corporations have a legal obligation to contribute 5% of their earning to the Workers Profit Fund.

The following table summarizes the income tax rates for employees in Bangladesh. 

Annual Salary (BDT)

Income Tax Rate 

O – 2,50,000
2,50,001 – 6,50,000 10%
6,50,001 – 1,150,000 15%
1,150,001 – 1,750,000 20%
1,750,001 – 4,750,000 25%
4,750,001 and above 30%

 

On the other hand, foreign employees are required to remit income tax at a fixed rate of 30%. Additionally, as Bangladesh doesn’t have a functional social security system, no social security contributions are remitted by Bangladeshi employees to the government. 

Employee Protection Against Discrimination 

The majority of implemented legislation relevant to the protection of workers’ rights is framed by Bangladesh’s labour laws and regulations. The constitution of Bangladesh states that every citizen is equal under the law. A business is not permitted to discriminate against workers or job applicants for reasons such as orientation, intimacy, theology, and so forth. It is advisable to refrain from questioning candidates on these subjects during interviews and to use language that is inclusive of all applicants. 

Cost of Hiring Employees in Bangladesh

The cost of hiring employees in Bangladesh varies depending on the business and the company’s rules regarding optional costs like benefits. As such, it is not feasible to give an exact number. The majority of businesses provide their workers with a number of extra advantages, such as health insurance, festival bonuses, and transportation allowances. Moreover, employers in Bangladesh incur extra expenses for job posting, interviews, employee training, and onboarding during the hiring process. So, when planning your budget for the hiring process, the extra expenses should be taken into account. 

Prospective Alternatives for Hiring Employees in Bangladesh

There are primarily two ways that foreign companies can hire employees in Bangladesh. You can either create a legal entity or employ an EOR in Bangladesh. Registering a foreign subsidiary in Bangladesh to oversee the hiring procedure may fulfill your hiring needs. However, it may be a laborious and time-consuming procedure. On the contrary, hiring a trusted EOR like Meteors has several advantages because it will handle payroll, benefits, taxes, and other HR responsibilities for your employees while making sure local labour and tax rules are followed. You can eliminate all types of hiring headaches when you work with an EOR. 

The Procedure for Hiring Employees in Bangladesh

  1. Determine the Necessity for Hiring: The first step of hiring employees in Bangladesh is determining the necessity of hiring. Employers need to clearly define the position’s requirements, prerequisite experience, desired qualifications, and candidate eligibility while making sure whether the position has to be filled temporarily or entirely. 
  2. Post Job Openings: Companies can post job openings online to find prospective employees or internally so that current staff members recommend candidates. 
  3. Examine Candidates: After getting responses from interested candidates, you need to review the resumes to find prospective employees. Notify the eligible applicants of the next screening procedures and remove ineligible applicants from the pool of applications. To further reduce the number of candidates, schedule interviews with the shortlisted candidates.
  4. Conduct Background Checks: To protect your company and confirm the qualifications of potential hires, background checks are crucial. Prior to making a final job offer, background checks usually examine a candidate’s credit report, criminal history, and career. 
  5. Make the Final Choice: Finally, the hiring process will end with an assessment of candidates based on their performance in interviews and screening exams, as well as their talents, recommendations, and other pertinent data. Decide on one or more top choices and then pick a backup candidate. 

Or, you can make the whole process of hiring easy and efficient by employing an EOR, like Meteors, in Bangladesh. It will be less time-consuming and allow you to focus on more important goals and aspects of your business. Meteors will effectively streamline the hiring process while staying compliant with all laws and regulations. 

Summary

The country harbors one of the most talented and hard-working people making the country a perfect place to recruit employees. Foreign companies can capitalize on Bangladesh’s prodigious talent pool, thereby stimulating innovation and expansion. However, first one needs to understand the specifics of hiring employees in Bangladesh. This blog discusses the essential factors one needs to know before hiring employees in Bangladesh which involve employment contracts, work permits, employee benefits, taxation, and employee protection against discrimination in Bangladesh. Then it moves on to the cost and the prospective alternatives of hiring employees in the country. Finally, it covers the step-by-step process of hiring employees in Bangladesh. Now if you need help with the extensive recruitment process, Meteors is the perfect partner for you!

Frequently Asked Questions (FAQs)

Which processes are essential for hiring employees in Bangladesh?

Employment in Bangladesh necessitates the execution of various procedures, such as acquiring required approvals, formulating employment contracts, and ensuring compliance with labour legislation. 

What are the basic employment contracts used in Bangladesh?

Employment contracts in Bangladesh typically comprise provisions of confidential information, working hours, termination protocols, compensation, and benefits. Adherence to these contracts to local labour laws and regulations is a must. 

Which recruitment channels are commonly utilized to acquire employees?

Online employment boards, newspaper advertisements, and social media platforms are all examples of diverse recruitment channels in Bangladesh. You can also hire an EOR to deal with the hiring process in Bangladesh. 

What are some possible challenges that should be avoided when hiring employees in Bangladesh?

Managing employee expectations, navigating bureaucratic processes, comprehending local customs and language barriers, and ensuring compliance with ever-changing labour laws and regulations are all potential challenges that may arise when hiring employees in Bangladesh. 

The post Hire Employees in Bangladesh: Step-by-Step Process appeared first on Meteors Bangladesh Ltd.

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