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Bangladesh PEO & Employer of Record

Hire in Bangladesh, without setting up an entity

With rapid economic growth and an openness to foreign investment, Bangladesh represents a promising expansion opportunity for many investors. It also provides a skilled, educated and young workforce that is technologically savvy and embracing new opportunities. 

Strategically situated between major consumer markets, Bangladesh also embraces trade with neighboring and overseas partners, including tariff-free arrangements. Prudent investors may choose to expand to this new market, but they may need assistance in penetrating the market in a compliant fashion.

Bangladesh PEO & Employer of Record Solution

Fast Market Entry

We'll help you hire and onboard local professionals in Bangladesh as little as 48 hours.

Cost Savings

Without needing to establish a legal entity, partnering with our Bangladesh PEO & Employer of Record solution can help you benefit from cost savings of up to 85%.

Payroll Services

Simplified salary & payroll processing, tax contributions, and any other required statutory submissions.

Employee Onboarding

Utilize the relevant provision for all types of labor contracts, whether a fixed-term or open-ended contract is required.

Onsite Legal & HR Team

Full support for contract renewals, legal termination procedure, annual leave management, HR support, and additional advice.

Stay Compliant

Guidance for ensuring compliant employment contracts in accordance with local labor laws and best practices.

New Horizon’s Bangladesh PEO services allow companies to hire employees in Bangladesh without first establishing a legal entity. We handle all HR, payroll, tax and benefits administration while the business maintains daily control over the staff’s work. This cost-effective option allows you to deploy staff faster while maintaining full legal compliance. 

Through our Bangladesh PEO, we manage the following expansion and employment procedures on your behalf:

📝 Employment contracts in Bangladesh

Written employment contracts are standard in Bangladesh. The terms of the contract are legally-binding between the parties and must comply with the provisions of the Labour Act. If there is no written employment agreement, employers must issue a letter of appointment.

⏰ Work week in Bangladesh

Labor laws restrict work hours to eight hours during a day and 48 hours per week. The usual days off are Friday and Saturday. Workers at industrial establishments, commercial establishments or shops must be given a resting period of 1.5 days each week.

Factory workers are entitled to one day of rest. Road transport service workers are entitled to a consecutive 24 hours per work week. Women cannot be required to work between 10 p.m. and 6 a.m. without their consent.

⏱ Overtime in Bangladesh

Adult workers in Bangladesh can work above 48 hours in a work week but not more than 60 hours in the week and not to exceed an average of 56 hours for the year. Overtime pay is twice the amount of the hourly base pay, in addition to a special allowance and interim or ad-hoc pay.

📅 Holidays in Bangladesh

1 Jan
New Year’s Day
10 Jan
Bangabandhu Homecoming Day
29 Jan
Saraswati Puja
8 Feb
Maghi Purnima
14 Feb
Valentine’s Day
21 Feb
Maha Shivaratri, Language Martyrs’ Day
26 Feb
Ash Wednesday
2 Mar
National Flag Day
9 Mar
10 Mar
17 Mar
Sheikh Mujibur Rahman’s birthday
20 Mar
March Equinox
22 Mar
26 Mar
Independence Day
27 Mar-7 Apr
Public Holiday
8 Apr
Shab e-Barat, Public Holiday,
9 Apr
Maundy Thursday, Public Holiday
10 Apr
Good Friday
11 Apr
Holy Saturday,Public Holiday
12 Apr
Easter Day, Public Holiday
13 Apr
Chaitra Sankranti, Easter Monday, Public Holiday
14 Apr
Bengali New Year, Public Holiday
15 Apr-30 Apr
Public Holiday
1 May
May Day,Public Holiday
2 May-5 May
Public Holiday
6 May
Buddha Purnima/Vesak, Public Holiday
7 May-9 May
Public Holiday
10 May
Mothers’ Day, Public Holiday
11 May-18 May
Public Holiday
19 May
Shab-e-qadr, Public Holiday
20 May-21 May
Public Holiday
22 May
Jumatul Bidah, Public Holiday
23 May-24 May
Public Holiday
25 May-28May
Eid ul-Fitr, Public Holiday
29 May-30 May
Public Holiday
21 Jun
June Solstice, Fathers’ Day
1 Jul
July 1 Bank Holiday
4 Jul
Ashari Purnima
1 Aug-2Aug
Eid al-Adha
3 Aug
Raksha Bandhan, Eid al-Adha Day 3
4 Aug
Eid al-Adha Day 4
11 Aug
15 Aug
National Mourning Day
22 Aug
Ganesh Chaturthi
30 Aug
2 Sep
Madhu Purnima
17 Sep
22 Sep
September Equinox
1 Oct
Prabarana Purnima
13 Oct
Akhari Chahar Somba
17 Oct
First Day of Navaratri
26 Oct
Durga Puja
30 Oct
Eid e-Milad-un Nabi
31 Oct
14 Nov
Lakshmi Puja,Sri Shayama Puja
27 Nov
16 Dec
Victory Day
21 Dec
December Solstice
24 Dec
Christmas Eve
25 Dec
Christmas Day
26 Dec
Boxing Day
31 Dec
New Year’s Eve

🙂 Annual leave in Bangladesh

Employees who have worked for an employer for at least one year are entitled to paid annual leave as follows:

  • One day of leave for every 18 work days in industrial establishments, commercial establishments, factories, shops or road transport establishment
  • One day of leave for every 22 days of work at a tea plantation
  • One day of leave for every 11 days of work for newspaper workers

If an employee does not use all accrued overtime in a year, he or she can carry forward unused time, subject to the following limitations:

  • Up to 40 days for factory or road transport workers
  • Up to 60 days for shop, industrial, commercial or tea plantation workers

If the employee plans to take leave for a minimum of four days, he or she is generally entitled to be paid ahead of time for this leave.

🙃 Casual leave in Bangladesh

Workers are usually entitled to 10 days of paid casual leave each calendar year. This leave cannot be carried forward to subsequent years.

😷 Sick leave

Additionally, most workers other than newspaper workers are entitled to 14 days of sick leave. Sick leave cannot be carried to subsequent years. Employees must present a medical certificate to receive sick leave.

Newspaper workers are entitled to sick leave at half-pay for a minimum of 1/18th of their employment period.

👶 Maternity leave

Expectant mothers who have worked for the employer for at least six months are eligible for maternity leave of eight weeks before delivery and eight weeks after it. Expectant mothers who have worked less than six months for the employer or have two or more surviving children are only eligible for unpaid leave.

Women are not allowed to work for eight weeks after giving birth to a child.

There is no statutory paternity leave in Bangladesh.

💰 Annual bonuses

Employees who have worked for the employer for a minimum of one year are entitled to two festival bonuses every year.

👨‍⚕️ Healthcare benefits

Large companies often provide employees with private health insurance. Group health insurance is based on the number of workers. In many industries, there may be a high required number of employees required before being able to procure group insurance.

👍 Other benefits

Large companies may also provide additional benefits to employees, such as:

  • Car facilities
  • Subsidized meals
  • Fringe benefits

Most companies in Bangladesh provide provident benefits to their permanent employees, which are usually derived from employer and employee contributions. They also usually provide gratuity benefits to permanent employees.

⛑ Workers compensation

Employers are required to provide compensation to employees who sustain a work-related injury. Compensation depends on the age of the worker. An adult worker can receive up to TK.1,25,000 for complete permanent injury while a young worker may receive up to Tk.10,000.

Minimum Wage Country Comparison Chart
(Per month in USD)
Switzerland (Geneva)

🔐 Social security in Bangladesh

Employees in Bangladesh are not required to contribute towards a social security fund. Companies that meet specific criteria must pay 5% of their profits into a Workers Profit Participation Fund, which provides monetary benefits to employees. Owners, partners or directors who have been employed with the company for a minimum of nine months are not eligible to receive these benefits.

Establishing a provident fund is not mandatory. Instead, it is based on the demand of a specific number of workers.

There is no Social Security tax in Bangladesh.

💸 Pension

The Bangladesh government does not sponsor any pension scheme.

🏦 Payroll taxes in Bangladesh

Payroll taxes are progressive from 10% to 30%, depending on the employees income. 

⏳ Probationary periods in Bangladesh

Bangladesh allows probationary periods of six months for clerical workers and three months for other workers, which can be extended another three months if the employer could not determine the quality of work within the first three months.

💰 Termination and notice procedures in Bangladesh

Employees who have worked for the employer for at least one year are generally entitled to 30 days notice for termination. The employer can opt to pay wages for this period instead of giving the notice.

Employees who are convicted of a crime or who are found guilty of misconduct are not entitled to receive this formal notice.

Termination for other reasons than those listed above usually require written notice of 120 days for monthly-rated workers and 60 days for other workers. Again, this notice period can be made through compensation to the employee instead of providing notice.

💲 Benefits of using a Bangladesh PEO

When you want to hire employees in Bangladesh, setting up a branch office or establishing a subsidiary is not always the best option. This step can often take weeks or even months, and be an expensive options. Using a PEO is faster and usually more efficient. Additionally, using a Bangladesh PEO allows you to minimize your risk in case you want to test the market before investing in a separate entity in Bangladesh.

Our PEO and payroll option in Bangladesh lets you skip the hassle of setting up a separate entity and trying to make sense of the complex labor laws here.

There are many benefits to using a Bangladesh PEO, including:

  • Speed – Using a PEO allows you to deploy staff faster, often within a matter of days.
  • Compliance – Our local experts have a deep understanding of local labor rules and regulations. We will ensure you comply with all local labor, tax and payroll requirements. The burden of compliance is on us, not you.
  • Reduce risk – By using a Bangladesh PEO, you transfer risk to a trusted third party like Horizons. You also reduce the risk associated with making a large investment in Bangladesh.
  • Access to better benefits – Since we leverage all of our local employees, we can offer more competitive benefits to your employees to make you a more attractive option for employment.
  • Simplicity – Using our Bangladesh PEO services allows you to maintain control over your business without taking on liabilities associated with setting up a separate legal entity.
  • Seamless transition – If you do later decide to establish a legal entity in Bangladesh, we can help your employees seamlessly transition.
  • Focus on your business – Because you delegate administrative tasks to a trusted legal partner, you can focus on your business’ core activities.

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