GLOBAL EMPLOYER OF RECORD in 190+ countries
Employer of Record in Bangladesh
Our Global Employer of Record solutions handle contracts, payroll, tax, benefits, and immigration in 190+ countries, so you build compliant teams fast, without incorporating abroad.
GLOBAL EMPLOYER OF RECORD
Global coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and remote locations
Compliant employment solutions in jurisdictions with limited infrastructure.
Employing in Bangladesh through an Employer of Record
An Employer of Record is a third party that takes over the legal and administrative side of employing people for a client company. In Bangladesh, Acumen International becomes the legal employer of the professionals who work for your business: it issues their appointment letters and contracts, runs payroll and tax withholding, sponsors work permits for foreign staff and answers for compliance with the Bangladesh Labour Act. Your business selects the people and directs their work.
A company can therefore start operating in Bangladesh without first registering a local company or a branch with BIDA, and without changing its existing structure. A team can be formed for a sourcing office, a technology centre or a project, then expanded or reduced as the business requires. Where the right person has not yet been found, Acumen International can also run the search, from specialist recruitment to executive search, with background and education checks before the offer.
Situations where an Employer of Record serves a Bangladeshi hire
- Contractor compliance. Professionals working full time for your business in Bangladesh move onto employment contracts, with tax withheld as the law requires.
- One accountable provider. Contracts, payroll, work permits and Labour Act compliance sit with Acumen International rather than with several local advisers.
- No entity to set up or maintain. You employ in Bangladesh without incorporating a company or registering a branch, liaison or representative office.
- Market tests and short-term projects. A sourcing pilot or a fixed-term technology project is staffed without permanent premises, then scaled or closed as results come in.
- Bridge to your own entity. While your Bangladeshi company is being incorporated, the first hires start with Acumen International and transfer once it can employ them.
- Fast team launch. Bangladeshi professionals start on Acumen International’s contracts while permits for foreign managers are processed.
- Mergers and restructuring. Staff in Bangladesh stay employed without a break while the group structure around them changes.
- NGO staffing. Development organisations and international NGOs employ programme and specialist staff under Bangladeshi law.
- Employer liability. Acumen International holds the Bangladeshi employer’s liability, so statutory duties sit with the party the labour inspectorate and the National Board of Revenue hold accountable.
- Remote team expansion. Team members based in Bangladesh join a distributed team with Bangladeshi contracts and tax.
Employing for another business in Bangladesh: the legal basis and its limits
The Bangladesh Labour Act 2006 treats workers supplied through a contractor as the contractor’s own workers, which places the full employer role on the supplying company. Acumen International employs your team on that basis and provides their services to your business under a commercial agreement. These rules shape the arrangement:
- Since the 2025 Ordinance and the 2026 Act, which together made about 90 changes, the Act’s definition of a worker covers anyone employed directly or through a contractor, whatever their job title.
- Managerial, administrative and supervisory staff remain outside the definition of a worker, so for senior hires the employment contract carries much of the detail the Act would otherwise supply.
- The supplying employer must issue appointment letters, keep service books, provide identity cards and grant leave and service benefits, as the courts have confirmed for outsourced staff.
- A business that relies on supplied staff does not escape the Act’s obligations by labelling the arrangement as outsourcing, so the employment must be real and complete.
What Acumen International handles in Bangladesh, from recruitment to exit
| Stage | What it involves in Bangladesh |
|---|---|
| Recruitment and checks | Finding the candidate where needed, with background and education checks before the offer |
| Work permit | The E visa recommendation and BIDA work permit for a foreign hire, with security clearance and annual renewal |
| Contract | An appointment letter and employment contract under the Labour Act, with a service book and identity card |
| Pay | Monthly payroll in taka with income tax withheld at source |
| Provident fund | Employer contributions where a provident fund applies |
| Exit | Notice, compensation where due and final settlement |
Pay rules in Bangladesh
Bangladesh has no single national minimum wage. A Minimum Wage Board sets minimum rates sector by sector, and since the 2025 reforms those rates must be reviewed every three years, with an annual increment of at least 5%. Failing to pay a minimum wage now carries a fine of BDT 50,000 to 100,000 or up to a year’s imprisonment.
For skilled and senior roles, salaries are agreed as a gross monthly amount in taka, usually split into basic pay and allowances; the basic pay matters because statutory payments such as lay-off compensation are calculated on it.
Employment contracts and working time in Bangladesh
| Rule | What it means for you |
|---|---|
| The general penalty for breaching the Act rose from BDT 5,000 to between BDT 25,000 and 50,000, with up to three months’ imprisonment | Compliance gaps that were once low-cost now carry real penalties |
| Since 2025, death compensation is due after one year’s service instead of two | End-of-service reserves are recalculated for the shorter qualifying periods |
| Establishments with more than 50 workers need a safety committee, and complaint committees with a female chair and majority are required | Workplace committees are set up as the team grows |
| Workers may refuse dangerous work without retaliation | Health and safety arrangements are documented for every site |
| A trade union can be registered with 20 members in an establishment of up to 300 workers, and up to three unions per establishment | Employee relations are planned with the new thresholds in view |
Ending employment in Bangladesh
For workers covered by the Labour Act, an employer ending the employment of a permanent worker paid monthly must give 120 days’ notice under section 26, or pay in lieu, together with the compensation the Act sets for termination. Since 2025, a worker laid off becomes entitled to lay-off compensation after three months’ service instead of one year, at no less than 50% of basic wages, and resignation benefits are graded by length of service.
A dismissal linked to union activity or a labour complaint can be treated as anti-union discrimination, and the Director General of Labour can order reinstatement and compensation. For senior staff outside the Act’s definition of a worker, notice and severance follow the employment contract, so they are agreed in writing at the outset.
Employment risks in Bangladesh and how Acumen International covers them
| Risk | Where it arises | How Acumen International covers it |
|---|---|---|
| Worker misclassification | The Act now covers anyone employed directly or through a contractor, whatever their title | Each role is classified at hiring and documented with an appointment letter |
| IP ownership | Rights in work created in the job sit with the local employer unless the contracts pass them on | Contracts confirm the rights and transfer them onward to your business |
| Client liability for pay and contributions | Courts have held that labelling staff as outsourced does not remove obligations owed to them | The employment, pay and benefits stay with Acumen International, and the service agreement sets out each party’s role |
| Equal pay for assigned staff | Supplied staff are entitled to the leave and service benefits the Act gives the contractor’s workers | Pay and benefits are set against comparable roles before the offer |
| Permanent establishment | An employee who negotiates or signs contracts for your company can create a taxable presence in Bangladesh | Signing authority stays with your company and is written into the role |
| Exit cost | 120 days’ notice for monthly-paid permanent workers, plus termination compensation | Grounds, notice and costs are prepared before any decision |
| Sponsor obligations | A foreign national needs an E visa, a BIDA work permit and security clearance, renewed every year | Acumen International sponsors each permit and files renewals before expiry |
| Pay transparency | Bangladesh has no pay transparency law, but EU-based groups apply the Pay Transparency Directive across their workforce | Pay structures are documented on objective criteria |
Work permits for foreign employees in Bangladesh
A foreign national employed in Bangladesh needs an employment visa and a work permit, sponsored by the employer. For companies registered with BIDA, the Bangladesh Investment Development Authority issues both the visa recommendation and the permit; companies in export processing zones and economic zones apply to BEPZA and BEZA instead.
- The E visa comes first: BIDA issues a visa recommendation, and the visa is obtained from a Bangladesh mission abroad before the work permit application.
- The work permit is normally granted for one year and renewed before expiry, with the visa extended in line with it. BIDA’s application fee is BDT 10,000 a year.
- Security clearance from the Ministry of Home Affairs runs alongside the application, and a delay can shorten the visa extension.
- Commercial employers must keep a ratio of five local employees to each foreign national, and produce a tax clearance certificate with the application.
What Acumen International contributes
- A BIDA-registered sponsor. The visa recommendation and work permit are applied for by the employer in Bangladesh. Acumen International sponsors your foreign manager or specialist, so they can work for your business without a company or branch of your own.
- Room within the ratio. Because Acumen International employs Bangladeshi staff as well as foreign nationals, a foreign hire can be placed within the five-to-one ratio that a small new entity would struggle to meet.
- Clean filings. Tax clearance and supporting documents are kept current, so applications and renewals are not held up at BIDA or in security clearance.
- Continuity year after year. Each permit and visa is renewed before expiry, keeping the person’s right to work unbroken for as long as they work for you.
Family members
Spouses and children of a work permit holder can obtain dependant visas, and need their own work permit to take a job.
Employer cost and income tax in Bangladesh
Bangladesh has no general social security contribution on salaries. Statutory employer costs come from the Labour Act instead: a provident fund where one is required, with the employer matching the worker’s contribution, and termination and lay-off compensation when employment ends. The 2025 reform package also proposed making a provident fund compulsory in establishments with at least 100 workers.
Income tax
The employer withholds income tax from salary each month. Rates for residents are:
| Taxable income (BDT) | Rate |
|---|---|
| First 400,000 | Nil |
| Next 300,000 | 10% |
| Next 400,000 | 15% |
| Next 500,000 | 20% |
| Next 2,000,000 | 25% |
| Remainder | 30% |
Foreign nationals who are not resident are taxed at a flat 30%. The top rate for residents is due to rise to 35% from the 2028/29 assessment year.
Sectors employing through an Employer of Record in Bangladesh
- Apparel and textile buyers employ sourcing managers, quality and compliance specialists and merchandisers in Dhaka and Chattogram.
- Software and IT services companies employ developers, QA engineers and project managers.
- Pharmaceutical and healthcare businesses employ regulatory, quality and medical affairs specialists.
- Energy and infrastructure projects employ engineers, project managers and HSE specialists.
- Development organisations and international NGOs employ programme managers and technical experts.
Hiring cases in Bangladesh and how they are handled
| Case | What local rules add | How it is handled |
|---|---|---|
| A European fashion brand opens a sourcing office in Dhaka with a German head of sourcing | An E visa, a BIDA work permit and security clearance, within a five-to-one local ratio | Acumen International sponsors the permit and employs local merchandisers alongside, keeping the ratio |
| A software company hires a Dhaka-based engineering manager | As a supervisory role, it may fall outside the Act’s definition of a worker | The role is classified and the contract sets notice and severance in full |
| A pharmaceutical business engages a regulatory specialist who has worked as a consultant | The Act now covers anyone employed directly or through a contractor | The specialist moves onto an appointment letter and contract with Acumen International |
| A Chattogram quality team is reduced after a buyer exits | Lay-off compensation is due after three months’ service, at no less than half of basic wages | Notice, compensation and settlement are calculated before the decision |
Benefits, payroll and leave in Bangladesh
Packages for professional roles in Bangladesh commonly combine basic pay with house rent, medical and conveyance allowances, a provident fund and annual festival bonuses. Since 2025, medical expenses reimbursed under a group insurance policy are exempt from income tax.
Payroll obligations
| When | What happens |
|---|---|
| Before the start | The appointment letter is issued, and a foreign hire’s E visa and work permit are in place |
| Every month | Salary is paid in taka with income tax withheld, and provident fund contributions are made where they apply |
| Within 15 days of deduction | Trade union check-off deductions are deposited where they apply |
| Before each permit expires | The work permit and visa are renewed |
Leave entitlements
| Leave | Entitlement | Paid by |
|---|---|---|
| Maternity leave | 120 days: 60 before and 60 after the birth | Employer |
| Annual, sick and festival leave | Set by the Labour Act for workers, and by the contract for staff outside it | Employer |
Sources
- Issuance and renewal of work permits for foreign nationals working in Bangladesh
- Obtaining a work permit in Bangladesh for foreign nationals from BIDA
- Bangladesh: taxes on personal income
- Bangladesh: significant developments
- The rules have changed: Bangladesh’s 2025-2026 labour law reforms and what it means for businesses
- Employers agree to mandatory provident fund, revise minimum wage every 3 years
- Outsourced workers in the eyes of Bangladesh’s labour law
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
Can we move an existing contractor or employee onto an Employer of Record in Bangladesh?
Yes, where the arrangement is suitable. Acumen can employ the individual through its Employer of Record structure in Bangladesh, giving the worker a formal local employment relationship without requiring your company to create its own employing entity. This is an employment transition, not a contractor reclassification service.
Can we use an Employer of Record for a project team in Bangladesh?
Potentially, yes. An Employer of Record can support defined local headcount for a client engagement, technical project or market requirement in Bangladesh without creating a company solely for that workforce. The roles, work location and expected duration should be assessed before onboarding.
Can we start with one employee in Bangladesh and add more later?
Yes. An Employer of Record lets you begin with the headcount the business needs and add employees as demand develops. If the Bangladesh team later becomes large enough to justify your own entity, the employment model can be reviewed without making that investment a condition of the first hire.