Employer of Record (EOR) in Bangladesh

Hire in Bangladesh in days, with no entity and no exposure to getting Labour Act compliance wrong. We place you with the right vetted EOR partner, at pricing you will not get going direct, and stay on your side for the life of the relationship.

  • Independent advice
  • Vetted partners
  • Operational in days

What an Employer of Record does for you in Bangladesh

An Employer of Record is a company that legally employs your Bangladeshi staff on your behalf. You choose the person and direct their work day to day. The EOR is the legal employer on paper, which is what lets you build a team in Bangladesh without forming your own RJSC-registered company.

In practice the EOR partner takes on everything that needs a Bangladeshi legal entity and local expertise: a compliant employment contract under the Labour Act 2006 (as amended 2025-2026), monthly payroll withholding and Provident Fund contributions, income tax withheld and filed with the National Board of Revenue, statutory benefits and leave under the current rules, and compliant onboarding and lawful exits with the correct statutory notice and gratuity. You get a working team in days. The EOR carries the legal and compliance weight; you carry the commercial relationship. The only question worth spending time on is which partner is genuinely strong in Bangladesh, and that is the question we answer for you.

01

Legal employer, on paper

A compliant Bangladeshi employment contract under the Labour Act 2006, with all statutory terms correct from day one, including the worker’s individual service book.

02

Compliant from day one

Monthly payroll, income tax withholding, and Provident Fund contributions, with statutory filings made to the National Board of Revenue and the correct labour authorities.

03

No entity required

Statutory benefits, earned and festival leave, notice and gratuity on exit under the Labour Act. You get a working team in days; the EOR carries the legal weight.

How it works: four steps to a compliant hire

From first call to a compliant Bangladeshi hire at work, usually in days.

01 — Scope & quote

We map the role, salary, and start date, and come back with a clear all-in monthly cost. No guesswork, no hidden extras.

02 — Compliant contract

Your employment contract is drafted to Bangladeshi standards by the partner, and we sanity-check the terms and pricing before you sign. Compliant from day one.

03 — Onboard in days

A correct Bangladeshi contract is issued under the Labour Act, with all statutory terms from day one, including the required service book. Your hire can start in days.

04 — Payroll & compliance run

Income tax and Provident Fund contributions calculated and withheld, payslips issued, statutory filings made to the National Board of Revenue. You direct the work; the compliance just runs.

What EOR in Bangladesh costs

Two parts: the statutory cost of employing someone, and the EOR partner fee. In Bangladesh the statutory employer cost runs through a Provident Fund, a profit-linked workers’ fund, and gratuity, not one combined tax, and there is no single national minimum wage to anchor against. We make both transparent before you commit, so there are no surprises.

Employer statutory cost

A Provident Fund matching the employee’s 7-8% of basic pay (now mandatory under the 2025-2026 Labour Act amendment), a Workers’ Participation Fund of 5% of net profit once paid-up capital or fixed assets cross a set threshold, and statutory gratuity of 30-45 days’ wages per year of service on termination. No single flat employer payroll rate exists; we cost each element for your specific headcount and structure before you commit.

Minimum wage (2026)

No single national rate. The Ready-Made Garment sector’s Tk 12,500/month entry-level rate (effective December 2023) is the most-cited figure; your actual reference rate depends on which of the roughly 42 gazetted sectors your role sits in.

Income tax (employee)

Progressive rate from 10% up to 30% above a Tk 375,000 tax-free threshold (higher for women, senior citizens, and other special categories). Withheld monthly at source. Borne by the employee, not added to your cost.

EOR partner fee

A transparent per-employee monthly fee. We benchmark across our vetted network, typically 15 to 25% below going direct, and renegotiate for you at renewal.

Why run it through Bradford Jacobs

We know which EOR partners are genuinely strong in Bangladesh, by sector and by complexity. We place you with the right one, at pricing you will not get going direct, and stay on your side for the life of the relationship.

Independent, not a single provider

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.

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

Pricing you can’t get direct

Bangladesh’s employer cost splits across a Provident Fund, a profit-linked workers’ fund, and gratuity, none of them a flat national rate, which makes it easy to under- or over-quote a monthly fee up front. We benchmark across our partner network for rates typically 15 to 25% below going direct, and renegotiate on your behalf at renewal. Most companies do not know how much room there is to negotiate. We do.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades across markets

Two decades placing and managing EOR arrangements across global markets, with the local knowledge of the Labour Act’s 2025-2026 rewrite, the Provident Fund mandate, and Bangladeshi termination rules that keeps you compliant.

  • EOR specialists
  • Labour Act 2006
  • Risk removed

Built for conversion to your own entity

Most companies use EOR for 12 to 24 months, then move to their own Bangladeshi Private Limited Company. We plan that crossover and manage the transition when the economics justify it.

  • EOR to entity path
  • Transition managed
  • Crossover planning

Why an EOR is the fastest compliant way into Bangladesh

Two things slow foreign employers down in Bangladesh: the time to incorporate with the RJSC, and the risk of getting the Labour Act’s notice, gratuity, and Provident Fund rules wrong, especially with the 2025-2026 amendment still settling in. An EOR removes both.

Working time, leave & contracts

Compliance handled under one Labour Act, recently and substantially rewritten. Bangladeshi employment law now requires mandatory Provident Fund enrolment, earned leave accruing at 1 day per 14 days worked, and termination that is only lawful with the correct notice or gratuity. An EOR carries all of it correctly from day one, so a wrong assumption never becomes a liability.

Operational in days, not weeks

Incorporating a Private Limited Company in Bangladesh typically takes 10 to 25 working days depending on whether foreign directors are involved, and you cannot legally employ anyone until the RJSC Certificate of Incorporation and post-incorporation TIN/BIN registrations complete. An EOR removes that wait entirely: a compliant Bangladeshi contract is issued and your hire starts in days. You prove the market first, then incorporate later only if the headcount justifies it. This is the real value of EOR in Bangladesh: speed into a sector-by-sector market, with the compliance carried by an expert.

Everything your Bangladeshi EOR covers

One transparent monthly fee per employee covers all of this. No hidden extras.

Compliant Bangladeshi contract

A compliant Bangladeshi employment contract under the Labour Act 2006, with individual service book, issued and maintained for you.

Payroll & Provident Fund

Monthly payroll run, with income tax and Provident Fund contributions calculated, withheld, and filed correctly each month.

Statutory benefits

All statutory benefits administered: earned leave (now 1 day per 14 days worked), 13 festival holidays, 14 days’ sick leave, 10 days’ casual leave, maternity leave of 120 days for eligible workers, and statutory notice and gratuity on exit. Provident Fund is deducted from the employee’s own pay and matched by the employer, not billed to you as an additional employee cost. Employees pay nothing toward the Workers’ Participation Fund; that is employer-funded only, where it applies.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how Employer of Record works in Bangladesh.

Is my hire employed by Bradford Jacobs or by me?

Legally, your hire is employed by the Bangladeshi EOR partner we place you with, which is what keeps you compliant without an entity. Day to day they work for you: you set the work, the goals, the relationship. You get the team; the partner carries the legal weight.

Usually within days once the role and salary are agreed, with a compliant Bangladeshi contract from day one. Compare that to the 10 to 25 working days an RJSC incorporation can take, during which you cannot legally employ anyone.

There is no single flat rate: a Provident Fund match of 7-8% of basic pay, plus a Workers’ Participation Fund contribution of 5% of net profit if your entity crosses the capital/asset threshold, plus gratuity accrual of 30-45 days’ wages per year of service. Add the transparent EOR partner fee and you have your all-in cost.

Yes, when done properly. The EOR is a real Bangladeshi legal employer meeting all Labour Act, Provident Fund, and tax obligations, including the 2025-2026 amendment’s changes. The risk is using an under-resourced partner, which is exactly why we place you with vetted partners and stay on your side for the life of the relationship.

The compliant contract, monthly payroll (income tax and Provident Fund withholding), employer contributions, statutory benefits and leave administration, and ongoing HR compliance. We give you one all-in monthly figure up front, with nothing added later.

Yes, and most companies do once the headcount and permanence justify it. We manage the transition from EOR to your own RJSC-registered Bangladeshi company, and can support the incorporation itself. Most use EOR for 12 to 24 months first.

Ready to hire in Bangladesh?

Tell us the role and we will come back with a compliant, all-in monthly cost and the right partner, usually within a day. No entity, no lock-in, no pitch, just the fastest compliant way to get your person working in Bangladesh.

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.