Employer of Record in Bangladesh

General Information

• Currency: Bangladeshi taka (৳) (BDT)
• Employer Taxes: 0.0%
• Payroll Frequency: Bi-Weekly/Weekly/Monthly
• Employee Costs: 0%
• Capital: Dhaka
• Fiscal Year: 1 July – 30 June

Main Aspects of the Labour Code

Minimum Wage

General: In Bangladesh, the National Minimum Wage Board sets the minimum wage for each sector every five years. Currently, the minimum wage is BDT 8,000 per month, although it may vary by sector.

Payroll

Payroll Cycle: In Bangladesh, the payroll cycle can be daily, weekly, bi-weekly, or monthly. According to Bangladesh’s Employee Rights and Labor Law, employees’ salaries must be paid by the end of the seventh day following the last day of the pay period. This rule also applies to employees whose employment has been terminated by the employer.

13th Salary

Employees who have completed at least one year of service are entitled to two festival bonuses each year. Each bonus should not exceed the amount of the employee’s basic salary..

Working Hours

General: In Bangladesh, the standard workweek is from Sunday to Thursday, with 9-hour workdays and a maximum of 48 hours per week.

Overtime: Additional hours may be worked if specified in the employment contract. For certain types of workers, overtime is limited to 2 hours per day and is paid at a rate of 200% of the regular salary.

Leave

Annual Leave (Vacation):

Employees are entitled to 1 day of annual leave for every 18 days worked in a calendar year. Note that certain industries may have different methods for calculating leave entitlement.

Public Holidays

In Bangladesh, employees are entitled to 11 paid national holidays each year out of the 21 days recognized. The employer determines which holidays are granted as paid leave. Public holidays that fall on weekends are not observed. Some religious holidays, based on the lunar cycle, will be confirmed closer to their respective dates.

Sick Days

Employees are generally entitled to 14 days of paid sick leave per year, which is covered by the employer. This leave is an annual entitlement and does not carry over from year to year. Employees must provide a medical certificate for all absences to qualify for sick leave and payment.

Casual Leave

Employees are entitled to 10 days of paid leave per year for urgent matters such as sudden illness, minor accidents, and pressing personal issues. This leave does not accumulate or carry over into the following year if it remains unused.

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 after the birth, with payments made by the employer. Those who have worked less than six months or who already have two surviving children are typically eligible for unpaid leave. Additionally, women are prohibited from working for eight weeks following the birth of a child.

In the event of a miscarriage before maternity leave begins, women are entitled to 4 weeks of paid leave with no deductions from their 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.

Other Leave

There is no provision for other leave in Bangladesh.

Using an Employer of Record (EOR) service in Bahrain, such as the one offered by Brain Source International, can streamline your operations and ensure compliance with local employment regulations. Here’s how Brain Source International can assist as your EOR in Bahrain:

1. Regulatory Compliance: Brain Source International ensures that your employment practices adhere to Bahrain’s labor laws, including working hours, overtime regulations, and annual leave entitlements.
2. Payroll Management: They handle payroll administration, including calculating wages, managing deductions, and ensuring timely payments. This includes handling any additional compensation for overtime or work during public holidays.
3. Employment Contracts: Brain Source International manages the creation and maintenance of employment contracts, ensuring they comply with Bahraini regulations and reflect the terms agreed upon.
4. Recruitment and Onboarding: They assist with recruiting and onboarding employees, ensuring that all processes are in line with local legal requirements and best practices.
5. Benefits Administration: Brain Source International manages employee benefits, including health insurance and other statutory benefits, ensuring that employees receive their entitled benefits.
6. Risk Management: By acting as the legal employer, Brain Source International takes on employment-related risks, including compliance with workplace health and safety regulations and handling any legal disputes.
7. Flexible Employment Solutions: Their EOR services are ideal for companies looking to hire staff quickly without establishing a local entity or managing independent contractors.

Partnering with Brain Source International as your EOR in Bahrain allows you to focus on your core business activities while ensuring that all employment-related matters are managed efficiently and in compliance with local laws.

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