As a global HR platform, Marzuna can be your trusted partner in expanding your business into Bangladesh, offering an alternative approach to traditional Employer of Record (EOR) services. Without the need for establishing a local entity, you can collaborate with Marzuna to build and manage a local team in Bangladesh. We provide a wide range of HR-related services, including managing payroll in accordance with local rules and regulations.
Working with Marzuna empowers you to delegate HR-related responsibilities to our experienced team, allowing you to focus on your core business activities. Our platform was specifically designed to assist businesses in their global expansion endeavors and boasts an extensive network of professionals who can guide you through the complexities of international business operations.
All in all, for businesses looking to venture into Bangladesh and other international markets, Marzuna’s HR platform serves as an excellent alternative. With our comprehensive HR solutions, you can expand your business operations in Bangladesh while expediting the hiring process and ensuring compliance with local laws and regulations.
Bangladesh’s labor laws are governed by the Labor Rules Control of 2015 and the Labor Act of 2006. These regulations, which outline weekly holidays, annual leaves, medical leave policies, and working hours, are applicable to all workers employed by commercial and industrial enterprises.
For organizations looking to expand into Bangladesh, establishing a local corporate structure might be costly and time-consuming. Employers also need to be aware of the country’s labor laws and regulations, which can be complex and need a deep understanding of local norms.
Observance of labor rules and regulations is crucial for protecting employee rights and ensuring a fair and secure work environment. By adhering to these laws and regulations, employers may build a loyal and productive staff as well as a positive reputation across the country.
| Privileges | Explanation |
|---|---|
| Working Hours | Eight hours per day for a maximum of 48 hours in a week. |
| Overtime Eligibility | According to Section 108 of the Labor Act, all employees are eligible for overtime compensation, which is fixed at twice the rate of the base wage and may be worked up to 12 hours per week or two hours per day. |
| Paid Public Holidays |
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| Holiday Pay | All employees are allowed full holiday pay on 11 festival holidays.
An employee will receive two additional holidays with full pay and an alternate day off if they want or are obliged to work on a festival holiday. |
| Medical leave | All workers have the right to request a minimum of 14 days of paid time off for medical reasons, providing they show a medical certificate. |
| Maternity Leave | Eight weeks of permitted paid leave can be used by female employees who have been with the firm for at least six months before and after the birth of their child. Women who haven’t had a job for six months typically qualify for unpaid leave. The eight weeks following the birth of their kid are also spent with them being prohibited from working. |
| Annual Leave Accrual Entitlement | After serving a full year at an employer, every employee has the right to request annual leave. One day of leave is calculated for every 18 working days of work. |
| Leave Expiry | Employees have the option of cashing out their accumulated paid yearly leave. |
| Leave Cash Out | Employees have the option of cashing out their accumulated paid yearly leave. |
| Accrued Leave at Termination | Employees may be paid in full for earned annual leave if they carry over their unused time to the next year. Employees are thus entitled to receive paid for their accumulated annual leave at the conclusion of the calendar year without any deductions or adjustments to the payout amount. |
| Employee Protection and Anti-discrimination Rights | All significant implemented rules and regulations for the protection of workers’ rights are dictated by Bangladesh’s labour laws and rules. Since everyone in Bangladesh is guaranteed equality under the constitution, discrimination based on caste, class, or religion is prohibited. According to the labour code, any youngster under the age of 14 is not permitted to work in a factory. Additionally, it allows for 30-minute breaks for shifts of five hours and six hours, respectively. |
| Confidentiality of Personal Information | There is no legislation requiring the employer to safeguard an employee’s personal information. However, everyone has the right to communication privacy under Article 43(B) of the Constitution. Under certain circumstances, including the following, the government may be able to restrict data under the recently passed Technology Act.
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In Bangladesh, individuals working under diverse contracts and agreements are commonly referred to as contractors. Unlike full-time employees who take direction from their employer and receive various employment benefits, contract workers are responsible for self-managing their work and handling their tax obligations.
When deciding between hiring full-time staff and contractors, it’s crucial to consider the project’s scope and duration. Important roles that require close supervision, such as accounting and marketing, often benefit from full-time employees. On the other hand, short-term assignments that demand specialized expertise are often better suited for contractors.
Contractors offer greater flexibility and cost-effectiveness since their work is governed by their contracts. However, employers may have less control over the contractor’s work schedule and output. Contract workers, working with various clients, have the freedom to set their own work schedules and may have less loyalty to a single employer. Additionally, contractors are less likely to engage in legal actions against their employer since their positions are typically temporary.
To ensure compliance with labor laws in Bangladesh, employers are obligated to create comprehensive employment contracts that outline every aspect of an employee’s wages, benefits, and compensation. It’s important to note that Bangladeshi Taka must be the currency used in the contract, as other currencies are not acceptable.
The hiring process in Bangladesh can vary depending on a company’s specific needs and objectives. Employers have the option to choose between contractual and fixed-term employees, each with its own set of requirements that need to be clearly specified in the employment agreements.
For a streamlined hiring process and peace of mind regarding employment contracts in Bangladesh, Marzuna offers an efficient Employer of Record (EOR) solution. By collaborating with our team of experts, employers can ensure that their employment contracts encompass all the necessary terms, benefits, and additional incentives while remaining fully compliant with local laws. This solution empowers businesses to focus on their core operations while entrusting HR management to our capable personnel.
According to Bangladesh’s Labor Act, Section 4(8), the duration of an employee’s probationary period is determined by their line of employment. The standard probationary time for employees in administrative duties is six months, whereas the standard probationary period for employees in other areas is three months.
The probationary term may be prolonged if an employee’s performance during that time is subpar. The individual is eligible for permanent employment with the company when the probationary term has ended.
In order to stay out of trouble with the law and provide their workers with a fair and equitable workplace, companies must follow these regulations. To help firms avoid fines and legal issues, our business can help make sure that hiring methods adhere to regional laws and regulations.
Both the employer and the employee have the option to end the employment contract under the Labor Act of 2006. According to the Act, there are five possible ways to end a job: termination with notice, dismissal, discharge, layoff, and retrenchment.
If an employer chooses to let an employee go, they must give them a notice period of 120 days for those who are paid on a monthly basis and 60 days for everyone else. Upon termination, the employee is entitled to one month’s compensation for each year of service.
To guarantee a just and lawful termination process, businesses must adhere to the correct processes established in the Labor Act.
Although expanding your business into Bangladesh may be difficult, it may be made easier and more efficient with the help of an Employer of Record (EOR). An EOR can take care of important HR tasks like managing contracts, taxes, work permits, and employee compensation so you can focus on growing your business.
With her thorough understanding of the local market, Marzuna can provide you with access to a pool of exceptionally qualified candidates who meet the needs of your business. CEOs and business owners may establish a local presence in Bangladesh with our EOR solution without needing to organize a formal organization or comprehend the nuances of the nation’s labor laws.
| Taxes that apply to invoices | Any business entity conducting operations in Bangladesh is required to pay a Goods and Services Tax (GST) of 15% to the government. |
| Minimum duration of service | The minimal term of employment is three months for other occupations and six months for administrative ones. |
| Currency Accepted | Bangladeshi Taka (BDT) |
| Required Details & Documents | Important personal information, passport copy, bank-related details, NIC card, and a TIN (if applicable)
For outsiders: Personal details, duties, and responsibilities within the organisation, educational and technical qualifications, CV, passport copy, bank details, passport size photos, medical report, and police verification |
Choosing your strategy before establishing your business in Bangladesh is essential. You have the option of creating a team from scratch and leading them yourself, or working with an EOR to take care of the duties of managing
| Category | Explanation |
|---|---|
| Business Visa Criteria | Business owners and CEOs in Bangladesh must fulfil requirements in order to receive a business visa. These include having an annual salary of more than five lakh BDT, filing copies of tax returns for the previous two years, and making at least 50 lakh BDT in profit from a business that operates in Bangladesh. In addition, candidates must provide two passport-sized pictures (45mm x 35mm), bank and employee information, and an application letter from a company such as the Board of Investment, Bangladesh Bank, or BEPZA. |
| Tourist Visa | You must apply for a tourist visa if you want to travel to Bangladesh legitimately to experience its special attractions. The following paperwork is required to apply for a tourist visa:
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| Student Visa | This type of visa is designed for students who intend to enrol in an academic program at a state-approved institute or university in Bangladesh. |
| Employment Visa | This visa is required for anyone entering Bangladesh for employment-related purposes. |
| Investors Visa | An investor visa is available to people who are investing in a private enterprise that is 100% foreign-owned, new, under construction, or industrially or commercially active. |
| NGO Visa | One can obtain an NGO visa for a job or service if they are assigned to an NGO that is registered in Bangladesh. |
| Work Permits | Explanation |
|---|---|
| Processing time | Around two weeks |
| Work Permit process | In Bangladesh, acquiring a work permit entails a number of stages. On behalf of the employer, local contacts in Bangladesh must first apply for the work visa. The Bangladesh Investment Development Authority (BIDA) must then receive an online application before issuing an e-visa. The worker can enter Bangladesh if BIDA accepts the application.
The next step is for the company to submit a work permit application 15 days before to the employee’s expected arrival in Bangladesh. The cost of this procedure is 5,000 BDT. The work permit will be sent to the Ministry of Home Affairs for security clearance after BIDA has approved it. In addition, the initial setup cost must be covered by an encashment certificate worth at least $50,000 USD. |
| Passport submission | A copy of the employee’s passport must be provided to any organisation, such as BOI or BEPZA.. |
| Work Permit validity | The typical duration of the work permit is three months. Nevertheless, depending on the specifics of the contract, it may be renewed or extended. |
| The work Permit process for different nationalities | The procedure for obtaining a work permit is generally the same for citizens of different nations, however there may be a few exceptions or modifications. |
| Change of sponsor within Bangladesh | To request a change, the employee must submit a fresh letter of application. in sponsorship. |
| Where is the application processed? | For the country of the employee, the application letter is handled in Bangladesh. |
| Work permit criteria | The applicant must have a good intention while entering Bangladesh, have no prior convictions, and be able to sustain themselves. |
| When can an employee travel to Bangladesh | Once all security checks have been completed by the Ministry of Home Affairs, any employee may travel to Bangladesh. |
| What’s the cost of a Business Visa? | Business visas with one entrance are typically $25 USD. |
| Duration of Business Visa processing | Every business visa has a standard three-month validity period, however it can be extended. The longest stay allowed during each visit cannot exceed 30 days. |
| Can you switch from a Business Visa to a Work Permit? | No |
| Termination of Work Permit | When the contract expires, the work permit loses its validity. A different mechanism is not necessary for cancellation. |
| Special requirements for Work Permit cancellation | The designated agency, the employee, or the employer may all terminate the work permit. |
| Work Permit | Every person from outside Bangladesh who wants to work must have a work permit. You may also start running your business without a visa thanks to the work permit. The processing time for a work visa is typically 15 days, and it has a three-month maximum validity period that may be increased. |
| Criteria to obtain a Work Permit | An individual who wishes to work in Bangladesh must meet the following requirements:
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It is essential to have a full awareness of Bangladesh’s rules and regulations regulating wages and taxation in order to maintain compliance. It is vital for a foreign organisation to abide by local tax rules, including those pertaining to income taxes, business taxes, security taxes, and other matters. You may either collaborate with us and take use of our local contacts in Bangladesh who can guarantee that everything is in compliance with the local rules, making payroll and employment administration more straightforward for you, or you can establish your own team to handle these activities.
| Tax | Explanation |
|---|---|
| Financial Year-end Date | 30th of June, every year |
| Tax Documents | IT-11GA |
| Corporate Tax | Companies in Bangladesh are required to pay a corporate tax of 32.5%. |
| Withholding Tax (For Non-Residents) | Dividends Percentage:- 20%
Interest Income:- 20% |
| Payroll Tax | Employers in Bangladesh are subject to a progressive payroll tax that ranges from 10% to 30%. |
| Employers’ Social Security and Statutory Contributions | Bangladesh has no notion of social security, however certain businesses are required to contribute 5% of their profits to the Workers Profit Fund. |
| Reimbursements | In Bangladesh, reimbursement is not permitted since there is no corresponding legal framework. |
| Medical Insurance | In Bangladesh, the healthcare system is characterised by diversity and often insufficient regulation. It comprises four main types of institutions:
Non-Governmental Organisations (NGOs),Government institutions,Global agencies,Private companies |
| Tax | Explanation | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Tax Rates | Monthly taxable salary per annum
Only citizens of Bangladesh have to pay this amount of tax. Foreign residents have to pay tax at a flat rate of 30% of their earnings. |
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| Income Tax Returns | Yes | ||||||||||||||
| Employees Social Security and Statutory Contributions | Employees in Bangladesh do not make any Social Security contributions to the government since there is no adequate Social Security system in Bangladesh. | ||||||||||||||
| Sales Tax | In Bangladesh, consumers must pay a 15% sales tax when they purchase goods and services. It is one of the main ways that the state makes money. |
Without the requirement to set up a subsidiary, we offer Employer of Record (EOR) services to businesses seeking to handle payroll and hire personnel in Bangladesh. With our local connections, hiring and onboarding staff only takes a few days, ensuring that labour rules and regulations are followed.
