Automate payroll in Bangladesh with Al-powered calculations, local BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions handling, and compliant payslips generated in seconds.
Establish credibility and match buyer objections: compliance, local knowledge, pricing clarity, and support.
Local Compliance Without Local Overhead: Ontop automates Bangladesh tax calculations and Collective Bargaining Agreement (CBA via Registered Trade Union) requirements so you avoid setting up a local entity. The platform handles Festival Bonus (Eid Bonus) payments, wage floors, and regional tax variation to keep payroll compliant and predictable. Transparent Pricing And Fees: Pricing clearly shows payroll fees, exchange rates, and contractor or EOR plan costs before payment.
Finance teams get predictable statements with no surprise charges. Human Support When It Matters: Live support helps resolve local queries and edge cases. Dedicated onboarding specialists guide tax registration and social security setup so teams move from hire to pay faster. Global Coverage With Bangladesh Expertise: Ontop supports hiring across 150+ countries while providing Bangladesh-specific workflows. Proration for Festival Bonus (Eid Bonus), Collective Bargaining Agreement (CBA via Registered Trade Union) compliance, and National Board of Revenue (NBR) deadline management. Scale globally while keeping local accuracy.
Provide fast facts: minimum wage, pay frequency, bonuses, regional salary ranges. Satisfies informational intent and helps long-tail SEO.
Minimum Wage And Pay Frequency: Bangladesh's minimum wage is BDT 12,500/month (general minimum 2024; garment sector: BDT 12,500) Monthly. With Festival Bonus (Eid Bonus), annual total reaches the statutory requirements. Many employers pay 2 bonuses/year (Eid ul-Fitr + Eid ul-Adha), 1 month basic each (mandatory for formal sector) or prorate into Monthly payments. Ontop supports both structures.
Average Salary And Net Take Home: National average salary is ~BDT 600,000 per year, about ~BDT 50,000 per month gross. Ontop displays gross-to-net breakdowns so payroll and offers align with local expectations.
Regional Variation To Budget For: Salaries run higher in Dhaka and Chittagong. Dhaka averages BDT 60,000 - 200,000 (~40%% above national). Chittagong around BDT 50,000 - 150,000 (~15%%). Ontop lets you model regional differences in offers and cost projections.
Festival Bonus (Eid Bonus): Bangladesh commonly provides 2 bonuses/year (Eid ul-Fitr + Eid ul-Adha), 1 month basic each (mandatory for formal sector). Payroll logic captures proration rules so payslips match local contract terms.
Bangladesh's wage structure includes Collective Bargaining Agreement (CBA via Registered Trade Union) that set sectoral minimums. Buyers search "minimum wage by sector," "CBA wages." Captures mid-funnel research intent.
National Statutory Minimum Wage: Bangladesh's national minimum wage is BDT 12,500/month (general minimum 2024; garment sector: BDT 12,500) Monthly. Applies to all workers unless a higher sectoral minimum applies. Revised annually.
Collective Bargaining Agreement (CBA via Registered Trade Union) Sectoral Minimums: Bangladesh has multiple active Collective Bargaining Agreement (CBA via Registered Trade Union) agreements covering specific sectors. These set minimums higher than the statutory minimum depending on industry and role. Sectors include key local industries.
How Sectoral Wage Floors Affect Payroll: If an employee falls under a specific CBA, you must pay the sectoral minimum. Underpaying triggers wage claims, back pay, and penalties. Ontop stores and applies the correct rate based on employee role and sector.
How Ontop Applies Correct Wage Floors: Ontop maintains an updated CBA database and automatically applies the correct minimum wage. During payroll preview, the system displays which agreement applies and confirms compliance. Removes manual compliance risk.
National Average Salary Benchmark: Colombia's national average salary is approximately ~BDT 600,000 per year. Varies by role, experience, and sector. Larger cities run up to 20% higher; rural regions typically align with the statutory minimum.
High-Cost Cities: Dhaka and Chittagong: Dhaka offers salaries ~40%% above national average, particularly in tech and finance. Typical range: BDT 60,000 - 200,000 annually for mid-level roles. Chittagong offers ~15%% premium with strength in innovation and services. Typical range: BDT 50,000 - 150,000.
Secondary Cities and Regional Variation: Secondary cities generally sit between 5% to 10% above the national average, depending on local industries. Rural regions typically align with or fall below the national average. When budgeting for diverse teams, account for market research to ensure equitable offers.
How Ontop's Cost Calculator Handles Regional Modeling: Input location and role to preview total employer cost. See how regional differences, wage floors, and benefits combine to show true cost of employment by city.
Buyers search "contract types Bangladesh," "permanent vs fixed-term." Legal structure and misclassification risk are critical for compliance.
Permanent Full-Time Employment (Permanent Contract): Standard indefinite contract with full statutory protections. Employees get all mandatory benefits (Festival Bonus (Eid Bonus), Annual Leave / Earned Leave, sick leave, maternity leave, Gratuity). Termination requires just cause or economic redundancy with notice and severance payout. Employer BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions contributions typically ~10% employer contribution to Workers Profit Participation Fund (WPPF)%.
Fixed-Term Contracts (Fixed-Term Contract): Limited-duration contracts (typically for a fixed period, renewable). Used for project work, seasonal roles, or temporary needs. Same taxes and benefits as permanent, but with defined end date. Subject to renewal restrictions and CBA rules. Simpler termination but accrued benefits paid in full.
Part-Time Contracts: Reduced hours subject to local statutory limits. Salary and benefits are prorated by hours worked. BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions and taxes apply pro-rata. Ontop handles prorated Festival Bonus (Eid Bonus) automatically.
Apprenticeships: Training contracts for students or junior profiles with reduced BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions contributions where applicable. Includes structured training and on-the-job learning. Misclassification can trigger reclassification penalties.
Self-Employed / Service Contract: Independent contractor operating own business. No employer obligations, only invoice payments. Contractor handles own BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions, taxes, invoicing. Critical: if worker appears to be employee (direction, control, exclusivity), you face reclassification and back-pay exposure.
Compliance Differences Between Contract Types: Tax rates, BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions contributions, benefits, termination rules, and Gratuity accrual vary by type. Misclassification triggers wage claims, penalties, and reclassification costs.
How Ontop Templates & Payroll Logic Handle Each Type: Ontop provides compliant templates for each type and applies correct payroll logic: permanent benefits, fixed-term accruals, part-time prorations, apprenticeship rates, and Service Contract invoicing. Avoids misclassification risk.
Explain operational flow from onboarding to monthly payments. Reduces friction and clarifies steps.
Onboarding And Registration: Ontop handles registration with Bangladesh tax authorities (National Board of Revenue (NBR)) and BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions and collects required IDs. Automation plus human verification reduces setup time and avoids compliance gaps. Typical onboarding: a few business days.
Monthly Payroll Calculation: Gross-to-net includes progressive 0% up to BDT 350,000 / 5% / 10% / 15% / 20% / 25% / 30% tax rates, Income tax via TDS% BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions, and Festival Bonus (Eid Bonus) proration. Platform applies region-specific tax bands, CBA rules, and wage floors for accurate payslips.
Contributions And Filings: Employer contributions include BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions (Income tax via TDS) and applicable local surcharges. Submitted according to statutory deadlines to BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions on your behalf. Ontop maintains records for annual reconciliation.
Payment Execution And Reconciliation: Payments in BDT ৳ (Bangladeshi Taka) via local bank transfers to local accounts. Ontop shows conversion rates and fees before approval. Audit-ready receipts and instant USD payout options available.
EOR Vs Service Contract: Your Options: Choose Service Contract plans for flexible work or full EOR for permanent employees. Ontop supports both and highlights compliance differences so you pick the right structure.
Finance teams search "Bangladesh payroll deadline." Captures operational queries and establishes Ontop as deadline-management partner.
Monthly Tax Withholding & BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions Payment Deadlines: National Board of Revenue (NBR) tax withholding due November 30 (annual return) via National Board of Revenue (NBR) online portal. BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions contributions due Monthly TDS by 15th to BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions authority. Late payments trigger Late TDS: 2% monthly; WPPF non-compliance: BDT 25,000 fine + interest penalty plus interest.
Annual Compliance Deadlines: Monthly TDS statement: annual BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions reconciliation, due By 15th. Annual Income Tax Return: due November 30. TDS Certificate (Withholding Certificate): annual employee tax certificate due By December 31.
Payroll Processing Calendar (Monthly Example):
Monthly payroll - TDS by 15th - WPPF annual accrual - Eid bonus scheduling. Key Regulatory Bodies & Filing Channels: National Board of Revenue (NBR):
Income tax and TDS. Online filing via official portals.
Department of Labour (DoL): Labour law enforcement.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA): Sector-specific compliance (garments).
Penalties for Non-Compliance: Late National Board of Revenue (NBR) remittance:
Late TDS: 2% monthly; WPPF non-compliance: BDT 25,000 fine + interest plus interest. BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions shortfalls result in fines. Missing documentation increases audit exposure. Audit exposure increases with missing filings. Willful violations can trigger criminal liability.
How Ontop Manages Deadlines Automatically: Ontop tracks all compliance deadlines, sends alerts before due dates, and submits filings automatically. Finance team approves payroll ahead of deadlines. All documentation audit-ready.
Buyers search "how much leave Bangladesh," "maternity leave," "paid leave entitlements." Impacts total cost of employment and satisfies planning intent.
Festival Bonus (Eid Bonus) (Eid ul-Fitr / Eid ul-Adha): All permanent employees entitled to 2 bonuses/year (Eid ul-Fitr + Eid ul-Adha), 1 month basic each (mandatory for formal sector). Typically paid in Eid ul-Fitr / Eid ul-Adha, or prorated across year. Statutory bonus, not discretionary. Must factor into annual payroll cost.
Annual Leave / Earned Leave: Minimum 10 days casual + 14 days sick + earned leave (1 day per 18 days worked) of paid vacation annually. Unused leave carryover varies by CBA. Some allow unlimited carryover; others limit carryover. Leave paid at regular rate upon termination if unused.
Sick Leave (Casual): Statutory sick leave paid at Full pay 14 days/year from employer. Medical certification required after a few consecutive days as per local law. BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions may provide supplementary coverage for longer absences.
16 weeks (8 before + 8 after) of maternity leave. Paid at Full pay from employer by the local health entity. Additional parental leave may apply.
Public Holidays: Bangladesh observes ~11 public holidays national holidays annually. Employees receive full pay or premium pay if required to work. Regional variations exist. Gratuity: Permanent employees receive 30 days pay per year (after 5 years continuous service) when terminated without just cause. Gratuity is a significant liability, must be accrued regularly and paid in full at termination.
How Ontop Automates Benefit Accrual & Compliance: Ontop automatically calculates Festival Bonus (Eid Bonus), leave balances (by CBA type), maternity deductions, and Gratuity reserves. Payslips show accruals and deductions clearly. Audit-ready.
Decision makers need concrete cost inputs. Provide contribution ranges, deduction rates, and sample calculations for budget decisions.
Employer BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions And Additional Charges: Employer BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions varies by sector and contract. Approximate rates:
Employee Deductions And Tax Bands: Employee deductions include Income tax via TDS% BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions and progressive National Board of Revenue (NBR) tax: 0% up to BDT 350,000 / 5% / 10% / 15% / 20% / 25% / 30% Regional/local taxes may add extra percentages.
Total Employer Cost Example: Scenario: Permanent employee in Dhaka at BDT 80,000 gross/month/month gross.
For annual planning, expect the total employer cost to be roughly ~10% above gross above the gross salary, plus applicable statutory accruals for benefits.
Clarify payment rails, currency handling, and worker features that influence adoption and retention.
Local BDT ৳ (Bangladeshi Taka) Transfers And Pay Runs: Payroll in Bangladesh typically uses BDT ৳ (Bangladeshi Taka) payments via local bank networks to local accounts. Ontop supports local rails so workers receive funds on payday in a single auditable run. No conversion friction.
Multi-Currency And Dynamic Conversion: When paying from other currencies, Ontop shows rates and fees before confirmation. Finance leaders get transparent previews. All conversions logged for audit.
Ontop Wallet And Instant USD Payouts: Workers receive USD via Ontop wallet backed by U.S. bank for fast access. Instant payouts reduce waiting times. Visible on worker dashboard and app. Useful for remote workers or USD preference.
Visa Debit And Worker Perks: Ontop issues Visa cards (physical or virtual) for immediate fund access. Security controls (instant freeze, limits) and perks (cashback, travel benefits, reduced transfer fees).
Buyers search "Bangladesh payroll mistakes," "how to avoid penalties." Fear-based content drives conversions.
WPPF (Workers Profit Participation Fund) Non-Compliance
Risk Level: HIGH
Bangladesh's Labour Act requires companies with 100+ workers to contribute 5% of net profit to WPPF and 5% to a Workers Welfare Fund. Many international subsidiaries ignore this, believing it applies only to local companies. DoL audits now explicitly target foreign employer subsidiaries. Ontop tracks WPPF eligibility thresholds and calculates mandatory contributions.
Festival Bonus Non-Payment
Risk Level: HIGH
Two mandatory festival bonuses (equivalent to 1 month basic salary each) must be paid before Eid ul-Fitr and Eid ul-Adha. Late or missing payments trigger immediate labour unrest and DoL enforcement. Ontop schedules festival bonus payments automatically based on the Islamic lunar calendar.
Ontop supports payroll for both contractors and employees in Bangladesh. The platform provides contractor (Service Contract) contract templates and full EOR services for employees so you can choose the structure that fits compliance and operational needs.
Ontop applies local employer contribution rules (typically around Income tax via TDS) and sector-specific rates when calculating payroll liabilities. The system presents a clear breakdown of employer charges during payroll preview so you know the total cost before approval.
Yes, mandatory bonus structures like Festival Bonus (Eid Bonus) are common. The standard structure is 2 bonuses/year (Eid ul-Fitr + Eid ul-Adha), 1 month basic each (mandatory for formal sector), usually paid in Eid ul-Fitr / Eid ul-Adha or prorated across the year. Ontop supports both approaches and reflects proration on employees' payslips and in cost projections.
Employees typically see BEPZA Social Security (EPZ) / Bangladesh Labour Act provisions deductions around Income tax via TDS and progressive National Board of Revenue (NBR) income tax withholding between 0% up to BDT 350,000 / 5% / 10% / 15% / 20% / 25% / 30% depending on income bracket and region. Ontop calculates and withholds the correct amounts based on salary, location, and personal circumstances.
Yes, Ontop provides cost previews that include employer contributions, taxes, statutory charges (like Gratuity accruals), and regional variation. Use these previews to budget hires accurately and compare contractor versus employee scenarios.
No. Ontop can operate as your Employer of Record (EOR), handling all legal employer responsibilities and registrations. You avoid the complexity and cost of setting up a local company. Alternatively, if you have an entity, Ontop can serve as your payroll processor.
Common risks include misclassifying employees as contractors, missing National Board of Revenue (NBR) payment deadlines, and failing to adhere to Collective Bargaining Agreement (CBA via Registered Trade Union) rules. Ontop's automation and expert support mitigate these risks.
