G-P Logo
Request a proposal

Payroll in BdBangladesh.






Country Capital



Taka (৳) (BDT)

When you’re ready to expand your company to a new location such as Bangladesh, there are several factors to consider. Before hiring employees, you must first set up a payroll and develop a strong benefits plan. Here are a few factors to consider.

Taxation rules in Bangladesh

The allowances that employees are able to receive at a tax advantage vary, but a typical breakdown may consist of:

  • Basic Pay
  • House allowance
  • Conveyance allowance
  • Medical allowance

The employment contract of a new employee should show the breakdown of the total salary package (cost to company or CTC) in a monthly amount.

Employers must stay abreast of Bangladesh’s payroll taxation rules. The country follows a progressive tax rate, which increases with income and ranges from 10% to 30%. Employers are responsible for a 30% corporate tax rate as a non-listed entity or a 20% tax as a publicly listed entity.

Different industries have their own taxation rules that you need to pay attention to. For example, ready-made garment manufacturers may pay a corporate income tax of only 14% if they meet certain requirements. While cell phone manufacturers and other industries may see varying tax rates.

Bangladesh payroll options

Companies have 3 main Bangladesh payroll options to choose from:

  • Internal: An internal Bangladesh payroll option is great for larger companies that are committed to the country. This option will require a robust HR team, a larger budget, and additional resources to master Bangladesh tax code and employment law.
  • Bangladesh payroll processing company: Companies can also choose to work with a Bangladesh payroll processing company. However, keep in mind that your company will still be held liable for any mistakes the payroll company makes.
  • G-P: By partnering with an Employer of Record like G-P, you can expand your global footprint without the hassle of entity setup and management. With us, companies can rest assured that all employees will be paid punctually and compliantly.

How to establish a payroll in Bangladesh

Before you can set up a Bangladesh payroll, you need to establish a subsidiary. The entire process can take months before you can begin hiring and set your payroll. Instead, you can work with a subsidiary alternative such as G-P. With us, companies can begin hiring in minutes, not months — without setting up a subsidiary.

Entitlement/termination terms

Companies should draft a written employment contract that includes entitlement and termination terms for every employee.

Termination of employment in Bangladesh generally requires employers to provide written notice of 120 days for monthly rated workers or 60 days for other workers, or equivalent pay in lieu. Workers are also entitled to 30 days of pay for every year worked.

Streamline global payroll management with G-P.

G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay teams with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.

Contact us to learn more about how we can support you.


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.

Expand in

Book a demo
Share This Guide