Almost nothing is more important to most employees than compensation and benefits. The right Bangladesh benefit management plan can influence someone to choose your company over another position. Plus, the right compensation levels for employees will ensure you stay compliant. Globalization Partners can help with all aspects of the process — we’ll act as the Employer of Record to keep you compliant, and we’ll handle benefits and compensation so that you don’t have to.
Bangladesh Compensation Laws
In 2018, the national minimum wage in Bangladesh was 1,500 Bangladeshi Taka. This was raised to 8000 BDT/month in 2019 and to 8100 BDT/month in 2020. However, the minimum wage could vary by sector — including in the garment industry, where there’s been talk of increasing the rate. For example, factory workers in Bangladesh get $68 a month as a minimum wage. Although Bangladesh compensation laws do not require any additional bonuses, employers will frequently offer housing assistance, education subsidies, and transportation allowances in addition to a basic salary.
Employees who complete at least one year of service for your company are entitled to receive two festival bonuses each year. The individual bonuses cannot be more than the employee’s basic salary.
What Benefits Are Guaranteed in This Country?
Part of your Bangladesh benefit management plan must include statutory benefits guaranteed in the country. All employees are entitled to time off, including 11 days of festival holidays with pay. As an employer, you pick the holiday and must give employees two compensatory paid holidays and a substitute holiday if they are required to work on one of the festival holidays you set.
Another guaranteed benefit is annual leave based on the industry and how long someone has worked for your company. The schedule includes:
- One day of paid vacation for every 18 days working in a shop, commercial facility, industrial establishment, factory, or road transport establishment
- One day of paid vacation for every 22 days working on a tea plantation
- One day of paid vacation for every 11 days of working for a newspaper
Bangladesh Benefit Management
Another important aspect of Bangladesh benefit management is supplementary benefits that aren’t required by law but can attract more talent to your open positions. While Bangladesh operates under a public/private health care system, with NGOs and international organizations providing rural health care, some employers choose to provide additional private health insurance. If you decide to offer additional benefits to employees, make sure they’re listed in an employment contract the employee signs before their first day.
Benefits and Compensation Restrictions in Bangladesh
If you do not opt for Bangladesh benefit outsourcing services, you need to research different benefit and compensation restrictions. For example, while women who have worked for your company for at least six months are entitled to eight weeks of paid leave before and after birth.
Choose Bangladesh Benefit Outsourcing Through Globalization Partners
The easiest way to handle compensation and benefits is through Bangladesh benefit outsourcing with Globalization Partners. We can handle complex compensation laws, navigate benefit management plans, and ensure you will not have to worry about compliance. Contact us today to learn more.