Bangladesh Labor Law Guide for Hiring Employees and Contractors
This labor law guide for Bangladesh has important information for businesses looking to hire employees or contractors in the country. Bangladesh is a country in South Asia.
Bangladesh boasts a burgeoning economy with an estimated Gross Domestic Product (GDP) of $450 billion USD for the full year of 2023. The most pivotal sectors driving this growth include textiles and garments, which remain the cornerstone of the nation’s exports, as well as pharmaceuticals, shipbuilding, leather goods, and Information and Communications Technology (ICT). Agricultural products, including jute and fish, also play key roles.
Bangladesh uses the Bangladeshi Taka (BDT) as its currency.
Minimum Wage
12,500 BDT per month
Overtime Wage
200% of the standard hourly wage
Meal Breaks
1-hour meal break
Rest Breaks
2 additional 15-minute breaks
Working hours
8 hours/day, 48 hours/week
Salary Payment Cycle
Monthly
Payroll Taxes
Social Security and other contributions
Paid Vacation
21 days
Overtime Hours
Over 48 hours per week
Night Shift Hours
Standard rate (no additional premium specified)
Holidays
11 days
No Work Days
Friday
Bangladesh enforces minimum wage laws. The minimum wage in Bangladesh is 12,500 BDT as of 2024. The central minimum wage rate is typically monthly.
Standard working hours in Bangladesh are 8 hours per day and 48 hours per week.
Overtime work is capped at an additional 12 hours per week, compensated at a rate of 200% of the standard hourly wage.
| Income Level (BDT) | Tax Rate |
|---|---|
| Up to 300,000 | 0% |
| 300,001 – 400,000 | 10% |
| 400,001 – 600,000 | 15% |
| 600,001 – 3,000,000 | 20% |
| Above 3,000,000 | 25% |
Paid Vacation: Minimum of 21 days per year.
Maternity Leave: 16 weeks, with 8 weeks taken pre-delivery and 8 weeks post-delivery.
Paternity Leave: Not mandated by law.
Sick Leave: 14 days annually.
Adoption Leave: Specific terms not mandated by law but generally negotiated in contracts.
List of holidays in Bangladesh:
| Holiday | Date |
|---|---|
| International Mother Language Day | February 21 |
| Independence Day | March 26 |
| May Day | May 1 |
| Eid ul-Fitr | Varies (Islamic Calendar) |
| Eid ul-Adha | Varies (Islamic Calendar) |
| National Mourning Day | August 15 |
| Victory Day | December 16 |
| Christmas Day | December 25 |
Retirement Benefits: Contributions to provident funds.
Healthcare Benefits: Medical allowances and health insurance.
Gratuity: Based on years of service.
Annual Bonuses: Commonly a festival bonus.
Other Benefits: Government-mandated welfare schemes and workplace safety measures.