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Compensation & Benefits in BdBangladesh.






Country Capital



Taka (৳) (BDT)

When expanding to a new country, figuring out how to craft a strong compensation and benefits plan can be challenging. A competitive benefits plan in Bangladesh will not only ensure compliance, but also help you attract skilled talent to your open roles.

Bangladesh compensation laws

In 2023, the Bangladesh Labour and Employment Ministry announced a monthly minimum wage increase to BDT 12,500. However, the minimum wage could vary by sector.

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 1 year of service for a company are entitled to 2 festival bonuses each year. Individual bonuses cannot be more than the employee’s basic salary.

Guaranteed benefits in Bangladesh

All employees are entitled to time off, including 11 festival holidays with pay. Another guaranteed benefit is annual leave, which is calculated based on the industry and the employee’s tenure. For example:

  • 1 day of paid vacation for every 18 days of work at a shop, commercial facility, industrial establishment, factory, or road transport establishment.
  • 1 day of paid vacation for every 22 days of work at a tea plantation.
  • 1 day of paid vacation for every 11 days of work at a newspaper.

Bangladesh benefits management

Another important aspect of Bangladesh compensation is supplementary benefits. While Bangladesh operates under a public/private healthcare system, some employers choose to provide additional coverage. If you decide to offer additional benefits, make sure they’re listed in the employment contract the employee signs before their first day.

Bangladesh competitive benefits planning

Growing your business in Bangladesh requires a comprehensive recruiting strategy and a competitive benefits plan to help you stand out. Designing a benefits plan that incorporates local employees’ critical needs and market expectations is a priority.

Bangladesh employee benefits plans

From managing compliance to providing trusted support for employees, companies have several critical responsibilities to address before building a benefits plan. Ensuring compliance with labor regulations is paramount, but it’s also crucial to offer benefits that truly provide value to local workers.

Companies can provide supplemental offerings beyond the minimum requirements to enhance workers’ quality of life and help open roles stand out. Potential fringe benefits include:

  • Flexible working hours
  • Bonuses and performance rewards
  • 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, companies must provide these benefits at a minimum for all employees:

  • Paid vacation leave (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. At the same time, evaluate your available resources and create a sustainable budget to accommodate long-term growth.

Are you planning on building a large-scale team or a smaller team? Answering this question 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 research local employees’ needs and expectations. Explore the key challenges and common expectations, so you can build a program that will be truly valuable for local workers.

Hold interviews 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 or surpass 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, 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 Bangladesh labor laws for specific rates for mandatory benefits. 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 are considered taxable. Personal income taxes are progressive, increasing as income increases, and range from 10% to 30%. You can consult national tax authorities to determine the appropriate taxation rates for employees in 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 employees as a supplemental benefit.

Partner with G-P to build your everywhere workforce.

As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.

Learn more about our platform and 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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