PEO Services in Bangladesh

A co-employment model for companies that want to share the employer relationship in Bangladesh rather than hand it over entirely. Worth knowing up front: true PEO co-employment is far less established in Bangladesh than in the US, so we will tell you honestly whether PEO or an EOR genuinely fits, and place you with the right vetted partner.

  • Independent advice
  • Vetted partners
  • Honest positioning

What a PEO does in Bangladesh

A Professional Employer Organisation works on a co-employment model. You and the PEO partner share the legal employer responsibilities for your Bangladeshi staff: you keep direction and day-to-day control, while the partner administers payroll, income tax, and Provident Fund contributions under a shared arrangement.

01

Shared employer role

You and the PEO partner share the legal employer responsibilities. You keep direction and control; they handle payroll, income tax, and Provident Fund administration.

02

More direct control

PEO suits companies that want to retain more direct control of the employment relationship than a full EOR arrangement allows. In Bangladesh, true co-employment is uncommon, so EOR is usually the better fit.

03

Honest recommendation

For most companies hiring in Bangladesh, EOR is simpler. We will tell you honestly whether PEO genuinely fits your structure, or whether EOR serves you better.

How PEO works in Bangladesh, step by step

From assessing the fit to a compliant co-employment arrangement.

01 — Assess the fit

We map your structure, headcount, and how much control you want to keep, and tell you honestly whether PEO or EOR serves you better. No product push.

02 — Set up co-employment

If PEO fits, we place you with a vetted Bangladeshi partner and structure the shared employer arrangement correctly.

03 — Onboard your people

Compliant Bangladeshi employment terms under the Labour Act, with the administrative employer functions handled by the partner.

04 — Payroll & compliance

Income tax, Provident Fund contributions, and statutory filings handled monthly, while you keep day-to-day direction.

What PEO in Bangladesh costs

As with EOR, two parts: the statutory cost of employment (a Provident Fund match, a profit-linked workers’ fund contribution where it applies, and gratuity accrual) and the partner service fee.

Employer statutory cost

A Provident Fund match of 7-8% of basic pay, a Workers’ Participation Fund contribution of 5% of net profit once the capital/asset threshold is crossed, and gratuity accrual of 30-45 days’ wages per year of service, all administered under the shared employer arrangement.

Minimum wage (2026)

No single national rate; the Ready-Made Garment sector’s Tk 12,500/month entry-level figure (effective December 2023) is the most-cited reference point, with around 42 other gazetted sectors carrying their own rate.

Income tax (employee)

10% up to 30% above a Tk 375,000 tax-free threshold, withheld at source as part of the shared payroll administration.

PEO partner fee

A service fee for the co-employment administration. Under a shared employer arrangement, Bangladesh’s Provident Fund, workers’ fund, and gratuity obligations still have to be administered correctly by someone. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why arrange it through Bradford Jacobs

Why companies arrange Bangladeshi PEO through us rather than going direct to a single provider.

We tell you if PEO fits your needs

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

We benchmark across our vetted network for rates typically 15 to 25% below going direct, and renegotiate for you at renewal.

  • 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 of placements

Two decades placing and managing employment arrangements across global markets, with the local knowledge that prevents costly Bangladeshi compliance mistakes, including the 2025-2026 Labour Act rewrite.

  • Co-employment expertise
  • Honest fit advice
  • Right structure

We flex as your structure changes

PEO, EOR, and your own entity sit on a spectrum, and the right point shifts as you grow. We advise on the path and manage the moves, EOR to PEO, or either to your own Bangladeshi Private Limited Company, as your presence develops.

  • EOR, PEO or entity
  • Transitions managed
  • Right fit as you grow

The employer duties a Bangladeshi PEO shoulders

Whichever model you use, the underlying Bangladeshi rules are the same. Under a PEO arrangement, the administrative employer functions are handled for you.

Working time, leave & contracts

Compliant Bangladeshi employment contracts and working-time rules (48-hour standard week, overtime capped and paid at double rate, earned leave now accruing at 1 day per 14 days worked). Income tax and Provident Fund contributions withheld and filed correctly. Statutory benefits, notice, and gratuity applied properly.

Statutory protections & exits

Statutory notice and the protections Bangladeshi workers carry under the Labour Act, since dismissal without proper notice or gratuity is not lawful, all handled under the shared arrangement. The value is the same as with EOR: the compliance is handled by people who do it daily. The difference is simply how much of the employer role you keep.

What a PEO arrangement covers

The co-employment administration covers all of this, under one transparent fee.

Compliant contract

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

Payroll & filings

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

Statutory benefits

All statutory benefits administered: earned leave, sick pay, maternity leave, notice and gratuity.

Compliance & support

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

Your questions answered

Straight answers on how PEO co-employment works in Bangladesh.

What is the difference between PEO and EOR in Bangladesh?

With an EOR, the partner is the sole legal employer of your Bangladeshi staff. With a PEO, you and the partner share the employer relationship, you keep more direct control, they handle the administration. In Bangladesh, true co-employment is uncommon, so EOR is the usual route; PEO suits specific structures.

For most companies, EOR is simpler and faster, especially with no Bangladeshi entity. PEO fits when you want to share rather than outsource the employer role, or have a structure that calls for it. We assess your situation and recommend honestly.

It depends on the structure. Some co-employment arrangements assume or work alongside your own RJSC-registered entity. If you have no entity and want none, EOR is usually the cleaner route. We will confirm which applies to you.

The administrative employer functions, payroll, income tax, Provident Fund contributions, and statutory filings, are handled by the partner. We make sure the arrangement is structured so responsibilities are clear and Bangladeshi law, including the 2025-2026 amendment, is met.

The statutory employer cost (a Provident Fund match, a profit-linked workers’ fund contribution where it applies, and gratuity accrual) plus a partner service fee for the co-employment administration. We benchmark across our network for pricing typically 15 to 25% below going direct.

Yes. These models sit on a spectrum and the right one changes as you grow. We advise on the path and manage transitions, EOR to PEO, or either to your own Bangladeshi Private Limited Company, as your presence develops.

Not sure whether PEO or EOR is right for Bangladesh?

Tell us your structure and headcount and we will give you an honest recommendation, usually within a day, plus pricing you will not get direct. No product push, just the right fit.

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.