Basic

Employment contracts are preferred in the local language – Bengali or English, whichever is locally used. The employer has to mention all the required details of the employee along with bonuses, allowances and leaves.

Probation Period

The probationary period followed in Bangladesh of a clerical employee is 6 months, while all other employees are subject to 3-month probation.

13th Month Pay

After the first year of employment, the employees of Bangladesh are entitled to a festive bonus. Employers may provide two festive bonuses every year. Ideally the bonus should be equal to basic salary or 50% of the gross salary.

Employee Benefits

Employers must provide the below mentioned benefits to the employees.

• Festive Bonus

• Maternity leave

• Health Insurance

Employer Payroll Cost:

There is no employer contribution in Bangladesh. However, the employer must contribute 5% of the profit to the Workers Profit Participation Fund as Social Security Contribution.

Employee Payroll Cost:

There is no employee contribution in Bangladesh.

Employee Income Tax

Income tax varies depending on the residential status. Residents of Bangladesh are taxed for worldwide income, while non-residents are taxed only on the income generated from inside the country.

Residents are levied income tax on progressive tax rates, which ranges from 0% to 25%. For non-residents, it is at a flat rate of 30%.

VAT

The standard rate of VAT followed is 15%.