Hiring in Bangladesh? The Labour Act just went through a major rewrite.

Bangladesh is one of the fastest-growing consumer and manufacturing markets in South Asia, but getting your employment model wrong here carries real cost: there is no single national minimum wage or payroll tax to plan against, only a sector-by-sector system. We help you choose the right way to hire, place you with the right partner, and stay alongside you for the life of the relationship.

  • Independent advice
  • Vetted partners
  • On your side at renewal

A 170-million-person market. A sector-by-sector system underneath.

Bangladesh is the world’s second-largest ready-made garment exporter and one of Asia’s largest consumer markets by population, with a young workforce and a growing services and pharmaceuticals base, but there is no single national minimum wage or unified payroll social-security tax: wages are set sector-by-sector by the National Minimum Wage Board, and employer cost runs through Provident Fund, gratuity, and a profit-linked worker fund rather than one combined rate.

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A 170-million-person market, outside a single payroll tax

Home to the world’s second-largest garment export industry and a fast-growing pharmaceuticals and IT/BPO sector, but Bangladesh has no single combined payroll tax: employer cost runs through a Provident Fund, a profit-linked Workers’ Participation Fund, and statutory gratuity, each triggered by its own separate rule rather than one flat national rate.

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Termination needs the right notice or gratuity

A single Labour Act 2006, substantially rewritten by a 2025-2026 amendment cycle, mandatory Provident Fund enrolment, and termination rules that are only lawful with the correct notice or gratuity, mean your employment structure has to be chosen with care and kept current.

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Independent expert advice

Not sure whether you need EOR, payroll, or your own Private Limited Company registered with the RJSC? We map your headcount, timeline, and risk profile and give you a clear recommendation, not a product pitch.

Four ways to hire in Bangladesh. Pick once, pick right.

Most businesses arrive having already decided, and often decided too quickly. Here is the honest version of each route. When one fits, the detailed guide is one click away.

Employer of Record

An EOR partner becomes the legal employer of your Bangladeshi staff, handling the contract, payroll, Provident Fund enrolment, and Labour Act compliance, while you direct the work. Operational in days, no entity needed. Best for testing the market or hiring a small team.

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Global Payroll

For when you already have a Bangladeshi entity, or want to consolidate payroll across several countries. You stay the legal employer; a specialist partner runs the monthly calculations, the Provident Fund contributions, and the income tax withholding correctly.

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Entity Formation (Private Limited Company)

Your own Bangladeshi company, registered with the Registrar of Joint Stock Companies and Firms (RJSC) as a Private Limited Company. Full control and a local presence, but you carry incorporation, TIN/BIN registration, and ongoing filings. Right when the headcount and permanence justify it.

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PEO Services

A co-employment model alongside your own Bangladeshi entity. True PEO co-employment is far less established in Bangladesh than in the US, so for most companies EOR or managed payroll is the better fit. We will tell you honestly which one your situation calls for.

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Bangladesh at a glance

Currency

Bangladeshi Taka (BDT/Tk), a managed-float currency supervised by Bangladesh Bank. Salaries are set and paid in Taka; if your budget lives in EUR or USD, exchange movement quietly changes your real cost.

Minimum wage (2026)

No single national rate. The most-cited figure is the Ready-Made Garment sector’s Tk 12,500 per month for entry-level workers (effective December 2023, unchanged into 2026); around 42 other sectors carry their own gazetted rate set by the National Minimum Wage Board.

Employer costs

No combined payroll tax. Employer cost runs through a Provident Fund (now mandatory, employer matches the employee’s 7-8% of basic pay), a profit-linked Workers’ Participation Fund (5% of net profit, only once capital or assets cross a threshold), and statutory gratuity on termination.

Leave & Notice

Notice runs 60 to 120 days for permanent staff depending on pay basis, with gratuity of 30 to 45 days’ wages per year of service. Earned leave now accrues at 1 day per 14 days worked and festival holidays rose to 13 days a year, both changed by the 2025-2026 Labour Act amendment.

Hiring in Bangladesh: quick answers

The questions we are asked most about hiring in Bangladesh.

What is the fastest way to hire someone in Bangladesh?

An Employer of Record. Your hire can start in days, with a compliant Bangladeshi employment contract from day one and no entity to set up. It is the lowest-risk way to test the market or place a small team.

Do I need a Bangladeshi entity to hire?

No. With an EOR you can employ people in Bangladesh without your own company. You only need to incorporate with the RJSC when you are committing to a permanent, larger presence, and we will tell you honestly when that point arrives.

There is no single national minimum wage or combined payroll tax to plan against: wages are set sector by sector, and employer cost splits across a Provident Fund, a profit-linked workers’ fund, and gratuity, all sitting inside a Labour Act that was substantially rewritten in 2025-2026. None of it is a problem when a partner who already knows the current rules is running it for you.

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

Let’s map your Bangladesh hire.

Tell us who you want to hire and where you are headed in Bangladesh. One conversation maps your options, flags the risks, and usually gets you to a better answer, and better pricing, than going direct. No pitch.

Tax and labour data verified July 2026 (National Board of Revenue, Bangladesh Labour Act 2006 as amended 2025-2026, Ministry of Labour and Employment, PwC). Figures change; we confirm the current position when we scope your hire.