Thinking about hiring talent from Bangladesh? Companies from all over the world, including Google, have done the same and are seeing monumental success. Bangladeshi people are exceptionally hard workers, and they welcome remote or unconventional work arrangements. On top of that, the country has very affordable salary structures in place. 

Considering it all, it’s still important to get your ducks in a row before starting the recruiting and hiring processes. If you don’t, you can walk right into compliance issues and frustrations from not finding the right talent quickly enough. And we intend to help with that in this employee benefits guide.

Read on to learn about Bangladesh employment law, mandatory employee benefits in Bangladesh, supplementary perks to consider, and practical tips on how to build an effective employee benefits plan. By the end of this article, you’ll have the information you need to move towards your hiring objectives with purpose.

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Bangladesh Employment Law

The employee benefits you’ll include in your benefits packages stem from Bangladesh employment laws like the following: 

These are not the only regulations to be aware of when it comes to Bangladesh labor law. However, the bulk of the information you need is in these laws.

In addition to the actual regulations from the Bangladeshi government, there are also helpful resources from legal professionals in the international business world,  such as dedicated global business resources and legal databases. In becoming familiar with the laws pertaining to you as an international employer, it’s wise to explore all of these avenues in some capacity.

Also, be aware that laws may be updated at any time, so it’s always important to check for law amendments.

Mandatory Employee Benefits in Bangladesh 

Bangladesh can be very strict regarding employee rights, requiring employers to offer the following mandatory benefits to workers in the country. Though the best possible source of truth is the actual law, we’ll walk you through the most important aspects of each of the benefits below: 

Minimum Wage

As of December 2024, the minimum wage in Bangladesh stands at 12,500 BTD per month, equating to $102.50 USD. This minimum wage is typically offered to workers who make garments in the country. It’s important to remember that the minimum wage can always change, so keeping track of Bangladesh minimum wage updates would be advantageous for any company, foreign or otherwise. 

If you hire a Bangladeshi employee and fail to pay them the minimum wage, negative legal issues could very quickly surface. 

Working Hours and Overtime Pay 

As an employer of Bangladeshi workers, you’d be required to limit regular work hours to 48 hours per week or 8 hours in a single day. If an employee is made to work beyond those hours, that would be considered overtime pay and it should be paid at two times the regular wage. 

Festival Bonuses

In Bangladesh, employees who have been working for their employer for at least a year are entitled to what’s called a festival bonus. The festival bonus is made up of two payments. Though there are no mandated minimums, the bonuses typically equate to 1/12 of the annual gross salary. Still, this bonus may be outlined in the employment contract or other agreements.

Earned Leave

Earned leave, also called annual leave, is due to employees in Bangladesh per the employment law. It accrues at a rate of one day for every 18 days the employee has worked. There are variances based on the industry in which the worker works. See the table below for more information about earned leave entitlements: 

Type of JobLength of Leave
Commercial establishments, factories, road transport, shops1 day of leave per 18 days of work
Newspaper workers1 day of leave per 11 days of work
Tea plantations1 day of leave per 22 days of work

Casual Leave

In Bangladesh, employees are entitled to casual leave that they can use for emergencies or other matters of importance. This leave should last for 10 days per year, and the worker should be paid their full wages. Unused casual leave cannot be carried over into the next year –  if it’s not used, the employee loses it.

Sick Leave

All Bangladeshi workers, except newspaper workers, should get 14 days per year of sick leave. They should receive their entire normal wage throughout this time. In order to take sick leave, workers should present a certificate from a registered medical practitioner appointed by the employer. If that’s not possible, the employee can use their own medical practitioner. 

REMOTE PEOPLE NOTE

Stipulations regarding newspaper workers can be found in the Bangladeshi Labor Act of 2006. 

Maternity Leave

For some time, the Maternity Leave Law in Bangladesh allowed for 112 days of maternity leave. That was recently changed to 120 days total in 2023. The leave can be taken both before and after the birth of the child. Throughout the leave, the employee will receive their full pay. 

REMOTE PEOPLE NOTE

As of the time of this writing, there is no statutory paternity leave in Bangladesh. But that doesn’t mean that you can’t offer this benefit to your male employees. Some of your competitors may offer it. 

Provident Fund (if applicable)

The Provident Fund acts as a retirement benefit for certain workers in Bangladesh and it is mentioned in government law (The Provident Funds Act, 1925). According to the legislation, employees and their employers have to contribute to the fund to ensure that private workers aren’t financially ruined upon retirement. 

You can learn more about the Provident Fund in the Provident Funds Act legislation. 

Supplementary Employee Benefits in Bangladesh

The statutory benefits outlined in Bangladesh law are a given – they must be included in your employee benefit plan. But in addition to those laws, we encourage you to think about supplemental employee benefits.

They can tip the scales in your favor when you go to recruit candidates. Imagine a scenario where a candidate has a choice between your company and another. If you offer benefits that appeal to them to a greater extent than those offered by the opposing company, they may accept your job offer over the alternative. In addition to having more leverage during hiring, a bulkier benefit package will make employees feel appreciated. 

 Here are a few supplementary employee benefits to consider for Bangladeshi employees: 

  • A health insurance plan with generous benefits and extras like dental and vision to fill in any gaps left behind by public healthcare. 
  • Fitness programs and yoga memberships to help employees reach their health goals. It also promotes a culture of health consciousness in your organization. 
  • Life insurance to ease the burden on an employee’s family in the event that they pass away. 
  • Allowances for food, business-related travel, and other things employees must typically pay for throughout the course of work. 
  • Bigger festival bonuses than are required by law. 
  • More paid leave than the law requires. 
  • Work-from-home opportunities for job positions that are compatible with remote or hybrid work models. 
  • Housing assistance when the job position requires workers to move house. 
  • Discounts and perks exclusive to employees. Get creative by increasing discounts for those that hit certain performance milestones. 

Take the time to properly weigh your options before selecting the benefits. Some will work better for you and your employees than others. 

How to Build an Effective Employee Benefits Plan for Bangladeshi Workers

Your employee benefits plan for Bangladeshi workers can make or break the hiring process. And egregious compliance violations can quickly tank your organization. So, it pays to have a plan. Here’s how to craft a benefits package poised to help you achieve your organizational goals:

  • Get familiar with the laws affecting your organization. The actual law text is the ultimate source of truth to follow. Since legal jargon can be difficult to sift through, be sure to reach out to a lawyer at any point for clarification. Even if an employer doesn’t fully understand a law, they can still be punished for breaking it. 
  • Note all of the mandatory and supplementary benefits you’d like to include in the benefit plan. There is no wiggle room when it comes to the non-negotiable benefits. But you do have a choice with supplemental benefits. Ensure they align with your company’s culture, budget, and prospective employees’ needs. 
  • Create a document with all of the benefit details. Keep the document’s formatting as clean and simple as possible and use easy-to-understand language. Overly complicated language can lead to misunderstandings and frustration for workers and candidates. 
  • Distribute the benefit plan according to your company’s needs. Feel free to email them to shortlisted candidates, new hires, and orientation attendees. 
  • Make sure the plan stays updated per changes to Bangladesh law. 

So, there you have it – the basics of employee benefits in Bangladesh. We hope you found all the information you needed in this employee benefits guide, and we wish you the best as you move closer to your international hiring and expansion goals.