What do you need to know to hire in Bangladesh?

The absence of a mandatory national social insurance levy keeps employer on-costs lower than most comparable markets. The main statutory additions are the Provident Fund contribution (where a scheme exists), paid sick leave at full wages for 14 days per year, and maternity pay obligations during protected periods. Festival bonuses are common in practice, though not required by law for most sectors. Teamed's Bangladesh fee sits inside the total cost envelope, not outside it.

Teamed's Bangladesh price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice.

The full breakdown, with worked examples at current statutory rates, is in the cost guide.

Registering a private limited company in Bangladesh requires registration with the Registrar of Joint Stock Companies, a Trade Licence, and tax registration. Setup typically takes six to ten weeks. An Employer of Record is faster and cheaper at low headcount. Teamed runs Bangladesh payroll, contracts, and Labour Act compliance from day one.

The crossover point depends on local salary levels and your accounting costs. For most professional roles it lands at 5 to 8 employees. The EOR vs entity guide runs those numbers for Bangladesh specifically.

Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Bangladesh entity on one platform under Teamed's Graduation Model, with tenure preserved.

The Labour Amendment Act 2026 extended paid maternity leave beyond the previous position. The amendment also requires employers to pay wages electronically where facilities exist, and to provide written employment particulars from day one. Dismissal of a worker on maternity or protected leave carries enhanced liability. Probation remains capped at 3 months for manual workers and 6 months for clerical workers. During probation, either side can exit on 7 days notice.

Full permanent-employee status triggers after 12 months of continuous service. At that point the 120 days notice obligation and statutory severance entitlement apply. The hiring guide covers the day-one obligations in full.

Annual leave in Bangladesh accrues at 1 day for every 18 days worked. That is a lower statutory floor than most markets, but the high public holiday count adds significant non-working days. There are 28 public holidays in 2026 under the Ministry of Public Administration gazette. Many are tied to the Islamic and other religious calendars and change date each year.

Paid sick leave is 14 days per calendar year, at full wages paid by the employer. Maternity leave is fully paid for employees with at least 6 months of service, with the duration set by the 2026 amendment at approximately four months. Where a Provident Fund scheme is established, the employer contributes 10% of basic salary, matched by the employee. The benefits guide covers each entitlement and the employer obligations.

Bangladesh has no equivalent of NIC, CPF, or EPF as a mandatory employer levy. The primary payroll obligation is income tax withheld at source (TDS). The scale starts at 0% on the first BDT 375,000/year, rises through 10% on the next band, and reaches 30% on income above BDT 3,575,000 (Income Tax Act 2023, Finance Act 2025). Where a Provident Fund scheme exists, the employer also contributes 10% of basic salary and deducts the matching 10% employee share.

Payroll runs monthly. The tax and payroll guide sets out every band, the TDS filing obligations, and the provident fund rules.

Bangladesh termination is governed by the Labour Act 2006 and the 2026 amendment. Written notice is required in all cases. Permanent monthly-rated workers must receive 120 days notice. Permanent non-monthly-rated workers must receive 60 days notice. The employer may pay wages in lieu of notice instead.

Statutory severance applies after 1 year of continuous service, at 30 days wages per completed year. For longer-serving employees a gratuity may also apply: 30 days wages per year for service under 10 years, rising to 45 days wages per year for service of 10 or more years. Gratuity requires 5 years of continuous service. Final pay must be settled within 30 days working days. The termination guide runs the full process.

28 public holidays is the highest count in Asia. Many are tied to the Islamic, Hindu, and Buddhist calendars and shift date each year. Project timelines and resource planning need to account for this. US buyers planning a six-week delivery window are often surprised when two or three public holidays fall inside it.

The notice obligation for permanent monthly-rated workers at 120 days is longer than most buyers budget for. This is not a negotiable floor. Paying in lieu is permitted, so the cash liability is containable. But the timeline to safely exit or restructure a Bangladesh headcount needs to be modelled from day one. The hiring guide and the EOR vs entity guide both cover how Teamed navigates this.