Employment contracts in Bangladesh should be written and include the names of the parties, dates, job title, job description, salary, working hours, bonuses, annual leave, sick leave, casual leave and any termination clauses. It is also required to outline in any employment contract the process for filing an employment-related grievance. Many employment contracts include provisions about performance reviews if relevant for the employer.

In Bangladesh, the National Minimum Wage Board determines the minimum wage for each sector every five years. The current minimum wage is BDT 8,000 per month but may vary depending on the sector.

The standard workweek in Bangladesh is Sunday to Thursday, 9 hours per day, and a weekly maximum of 48 hours.

Overtime

Additional hours can be worked providing this has been made clear in the employment contract. For certain worker types, overtime is limited to 2 hours per day and paid at a rate of 200% salary.

Employees are generally entitled to 14 days of paid sick leave per year, paid by the employer, however, this is an annual entitlement and cannot be carried over from year to year.

All employees must present a medical certificate for all absences to receive sick leave and pay.

Maternity Leave

Female employees who have worked for at least six months are entitled to 8 weeks of paid maternity leave before the birth and 8 weeks of paid leave after the birth paid by the employer. Women who have worked less than six months or who already have two other surviving children are generally eligible for unpaid leave.

Women are also forbidden to work for eight weeks after the birth of a child.

Women who suffer a miscarriage before the commencement of maternity leave are entitled to 4 weeks paid leave with no deductions from wages during this period.

Paternity Leave

There is no provision for paternity leave in Bangladesh. However, some companies do choose to create a paid paternity leave policy.

Parental Leave

There is no provision for parental leave.

Employees are entitled to 1 day annual leave for every 18 days of work per calendar year (certain industries calculate leave entitlement differently).

Casual Leave

Employees are entitled to 10 days paid leave per year for urgent matters such as sudden illness, minor accidents and urgent personal issues. This leave does not accumulate nor carry forward into the following year if unused.

Although Bangladesh has 21 days of national holidays each year, employees are only entitled to take 11 of them off as paid holidays, and it is the employer’s choice as to which ones.

Public holidays that fall on a weekend are lost.

Certain religious holidays are determined by the lunar cycle and will be confirmed nearer the date of the holiday.

Date Day Holiday Notes

21 Feb 2024 - Wednesday - Shahid Day and International Mother Language Day

26 Feb 2024 - Monday - Shab-e-Barat

17 Mar 2024 - Sunday - Birthday of the Father of the NationBangabandhu Sheikh Mujibur Rahmanand National Children’s Day

26 Mar 2024 - Tuesday - Independence and National Day

5 Apr 2024 - Friday - Jumat-ul-Wida

7 Apr 2024 - Sunday - Shab-e-Qadr

10 Apr 2024 - Wednesday - Eid-ul-Fitr

11 Apr 2024 - Thursday - Eid-ul-Fitr

12 Apr 2024 - Friday - Eid-ul-Fitr

14 Apr 2024 - Sunday - Bengali New Year’s Day

1 May 2024 - Wednesday - Labour Day

22 May 2024 - Wednesday - Buddha Purnima (Boishakhi Purnima)

16 Jun 2024 - Sunday - Eid-ul-Azha - Tentative

17 Jun 2024 - Monday - Eid-ul-Azha - Tentative

18 Jun 2024 - Tuesday - Eid-ul-Azha - Tentative

17 Jul 2024 - Wednesday - Ashura

15 Aug 2024 - Thursday - National Mourning Day

26 Aug 2024 - Monday - Janmashtami

16 Sep 2024 - Monday - Eid-e-Milad-un-Nabi (S) - Tentative

13 Oct 2024 - Sunday - Durgapuja (Bijoya Dashami)

16 Dec 2024 - Monday - Victory Day

25 Dec 2024 - Wednesday - Christmas Day

Private healthcare insurance is recommended in Bangladesh. Due to the complications in funding public healthcare, private health coverage is often offered as a benefit.

Employees with at least one year of service are generally entitled to one month’s notice or pay in lieu of notice and 30 days salary for every year of service.

Notice Period

The notice period is 120 days or payment in lieu of notice can be given. Employees who resign must give 60 days notice.

No notice is required to be given during the probationary period.

Severance Pay

Employees who are terminated or resign having completed at least one year with an employer are entitled to severance pay (gratuity) of 30 days’ salary for each completed year of service.

Probation Period

Probation periods is a minimum of 3 months and a maximum of 6 months.

Employer Employer Payroll Contributions

There are no mandatory social insurance contributions for the employer

Employee Employee Payroll Contributions

There are no mandatory social insurance contributions for the employee

Employee Income Tax*

0% - Up to Tk. 350,000

5% - 350,001 – 450,000 Tk

10% - 450,001 – 750,000 Tk

15% - 750,001 – 1,150,000 Tk

20% - 1,150,001 – 1,650,000 Tk

25% - 1,650,000 Tk and above

Taxpayers’ category Tax free limit

For female taxpayers - 400,000

Senior male taxpayers aging 65 years and above - 400,000

Individuals with disability - 475,000

For gazetted war-wounded freedom fighters - 500,000

*A new exemption has been introduced where the lower of Tk. 450,000 or 1/3 of total taxable income is exempt from Income Tax.

Payroll Cycle

In Bangladesh, the payroll cycle can be daily, weekly, bi-weekly and monthly. Employees salary must be paid by the end of the seventh day after the final day on which the payment is due, according to Bangladesh’s Employee Rights and Labor Law. The same rules are applied for those employees whose employment has been ended by the employer.

13th & 14th Salaries

Employees who have completed at least one year of service are entitled to two festival bonuses each year. Each bonus should not be more than the basic salary.

All foreigners entering Bangladesh require a visa. There are many types of visas for prospective foreign nationals, including business, investor, employment, and NGO working visas. The duration of stay will be worked out by the embassy at which one is applying following a review of required documentation, generally, a valid passport, two passport-size photographs, an application form, and the visa fee.

If expats are going to work in Bangladesh, a work permit is also required. Government bodies tasked with issuing these permits include the Bangladesh Investment Development Authority, the Bangladesh Export Processing Zone Authority, and the NGO Affairs Bureau. The prospective employer will confirm which body to contact.

The standard rate of VAT in Bangladesh is 15%.