HR Software for Bangladesh

Leave Policy

Maternity Leave

Employees who have worked continuously for 6 months are entitled to 16 weeks of paid vacation. 8 days of this must be taken before the birth of the child. The employee receives her average salary for the last three months before reporting the birth, and the employer is responsible for this salary.

Paternity Leave

There is currently no statutory paternity leave.

Parental Leave

There is no parental leave law in Bangladesh.

Sick Leave

Employees are entitled to up to 14 days of paid sick leave. This vacation is 100% paid by the employer.

Pay & Tax

Minimum Wage Requirements

There is no legal minimum wage in Bangladesh.

Individual Income Tax

Individual income tax ranges from 0% to 30%. Income tax is calculated at progressive rates. Several additional factors can affect overall rates, such as: B. the household status and the number of children.

For foreign residents the tax rate is a flat rate of 30%.

Payroll Cost

The cost to the employer is generally estimated at 8.33% of the employee’s salary:

Holiday subsidy – 8.33%

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week. The standard working week lasts from Sunday to Thursday.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.

Layoffs in Bangladesh can be complex. In Bangladesh, employers cannot terminate at their own discretion outside of the probationary period and the termination must be for just cause.

Compliant terminations are:

  • Voluntary by the employee
  • By mutual agreement
  • Unilaterally by the employer due to:
    1. Probationary period
    2. Objective reasons
    3. Disciplinary dismissal
    4. Performance due to unsuitability for the position
  • When the contract expires

Notice Period

The minimum notice period is 60 days and increases depending on the type of employment.

  • 60 days if the employee is employed on a monthly basis
  • 120 days if the employee is employed on a permanent basis

Severance for Employees

In Bangladesh, all employees who are laid off are entitled to severance pay. The severance payment is 30 days per year of service up to one month’s basic salary.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 20 days of paid time off (PTO) per year. PTO increases monthly by 1 day for every 18 days worked. Employees are entitled to annual leave after completing their probationary period.

Public Holidays

In Bangladesh, 20 national holidays are celebrated over 24 days.

National holidays include:

  • Shaheed Day and International Mother Language Day
  • Birthday of Father of the Nation Bangabandhu Sheikh Mujibur Rahman
  • Shab-e-Barat
  • Independence and National Day
  • Bengali New Year celebrations
  • Jumatul Vida
  • Shab-e-Qadar
  • May Day
  • Eid-ul-Fitr – 3 days
  • Buddha Purnima (Boishakhi Purnima)
  • Bank holiday
  • Eid-ul-Azha – 3 days
  • Moharrum (Ashura)
  • National Day of Mourning
  • Janmashtami
  • Durga Puja (Bijoya Dashami)
  • Eid-e-Miladun-Nabi (S)
  • Day of the victory
  • Christmas Day
  • Bank holiday

Onboarding

Onboarding

Onboarding takes 5 working days. The documents must be completed 1 day before the start date.

Additional Info

Employment Contract Details

Contracts must be written in English and may be bilingual. They must be in writing and signed by both parties.

A contract must contain:

  • Title of the contract
  • Identification of the parties
  • Term of the contract
  • Position/work location
  • Remuneration
  • Mandatory services
  • Termination Procedure
  • Dispute resolution

Probation Period

The probationary period is mandatory. The minimum probationary period is 3 months and the maximum probationary period is 6 months.