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Compensation & Benefits in BdBangladesh.






Country Capital



Taka (৳) (BDT)

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. G-P 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.

Guaranteed Benefits in Bangladesh

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 Benefits 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.

Restrictions for Benefits and Compensation

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.

Bangladesh Competitive Benefits Planning

Growing your business in Bangladesh requires a comprehensive recruiting strategy and competitive benefits plan to help you stand out. As you attract the right local professionals to your team, designing employee benefits plans that address their critical needs and market expectations is a priority.

Bangladesh Employee Benefits Plans

From managing compliance to providing trusted support for your employees, you have several critical responsibilities to address as you build your employee benefits plan. You must ensure that you are meeting all labor regulations and remaining competitive in the local market.

At the same time, you want to ensure that you’re offering benefits that provide value for your workers. Building a program that addresses your employees’ key needs in the local market demonstrates that you truly appreciate their contributions to your company.

You can provide supplemental offerings beyond the requirements to enhance your workers’ quality of life and help your vacancies stand out to job seekers. Potential fringe benefits include:

  • Flexible working hours
  • Bonuses and awards for performance
  • Enhanced maternity and paternity leave options
  • Counseling support and services
  • Educational resources and assistance
  • Gym memberships and fitness events

Requirements for Employee Benefits in Bangladesh

To stay compliant with national labor laws, you must provide these benefits at a minimum for all employees:

  • Paid vacation leave, with duration based on the industry
  • Holiday leave
  • Sick leave
  • Maternity leave

How to Design Your Employee Benefits Program

As you grow your business internationally, you can expect your benefits program to look a bit different in each country. However, you can follow the same general steps to create a plan in any region.

1. Set a Program Scope and Budget

As you begin your benefits planning process, you’ll need a clear set of goals and program scope. Assess your overall business objectives in the country to help you set the range of services you can provide for your employees. At the same time, evaluate your available resources and create a sustainable budget to accommodate long-term growth.

Are you planning to begin with a large-scale team, or do you want to prioritize offering more benefits for a smaller team? Answering these questions and discussing your objectives with stakeholders will help you decide how to allocate your resources best and prioritize your offerings.

2. Research Local Employee Needs

Once you’ve established your goals and budget, you’ll want to consider your employees’ needs and expectations. Explore the key challenges and requirements workers have in the local market so you can build a program that will be truly valuable for them.

Hold interviews with local workers or send out questionnaires about employees’ top concerns and needs. Ask what they look for in a company’s benefits offerings and what needs they feel aren’t often met.

At the same time, you might also research the offerings of other companies in your region and industry to see if you can match their benefits plans.

3. Develop an Optimized Benefits Program

After you’ve collected reliable data on economic conditions, employee needs, and competitors’ offerings, you can begin crafting your program. Remember to consider cost containment features, employee contributions, and any outsourcing expenses.

Average Cost of Benefits Per Employee

Depending on your budget and priorities for benefits offerings, your program expenses can vary considerably. Rather than aiming for an average, you can effectively manage costs by customizing your benefits plan to work optimally with your available financing.

How to Calculate Employee Benefits

You can consult Bangladeshi labor laws for specific rates for any mandatory benefits you offer employees. For supplemental benefits, use your research on local market standards to set competitive rates.

How Are Employee Benefits Taxed in Bangladesh?

In general, any remunerations or benefits you provide your employees are considered taxable. Personal income taxes are progressive and range from 10 percent to 30 percent. You can consult national tax authorities to determine the appropriate taxation rates for your employees’ specific situations.

Employee Health Benefits Plans

Bangladesh’s healthcare system includes universal public coverage, private insurance, and assistance from NGOs. Many companies choose to offer private insurance options for their employees as a supplemental benefit.

Support Your International Team With G-P

G-P offers trusted expertise and resources for international business growth. Request a proposal today.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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