Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
BDT ৳ (Bangladeshi Taka)
Employer contributions
~10% employer contribution to Workers Profit Participation Fund (WPPF)
Minimum wage
BDT 12,500/month (general minimum 2024; garment sector: BDT 12,500)
Payment frequency
Monthly
July 1 - June 30 (fiscal year)
Capital
Dhaka
Timezone
BST (GMT+6)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~BDT 88,000 total
/month
For a gross salary of
BDT 80,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~10% employer contribution to Workers Profit Participation Fund (WPPF)
Mandatory extras
Festival Bonus (Eid Bonus)
Monthly admin
Monthly payroll - TDS by 15th - WPPF annual accrual - Eid bonus scheduling
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~BDT 88,000 total
Example gross salary
BDT 80,000 gross/month
~BDT 61,000 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~BDT 8,000 WPPF
Employer contributions on that salary
Employer contributions
~10% employer contribution to Workers Profit Participation Fund (WPPF)
Employee contributions
Income tax via TDS
Total cost above gross
~10% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~BDT 50,000
Per month
Dhaka
BDT 60,000 - 200,000
~40%
Chittagong
BDT 50,000 - 150,000
~15%
Monthly gross. National average salary per year:
~BDT 600,000
Minimum wage
BDT 12,500/month (general minimum 2024; garment sector: BDT 12,500)
Paid:
Monthly
Extra pay
Festival Bonus (Eid Bonus)
2 bonuses/year (Eid ul-Fitr + Eid ul-Adha), 1 month basic each (mandatory for formal sector)
Eid ul-Fitr / Eid ul-Adha
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% up to BDT 350,000 / 5% / 10% / 15% / 20% / 25% / 30%
Tax year:
July 1 - June 30 (fiscal year)
Filing calendar
Monthly TDS by 15th
Social security payments
November 30 (annual return)
Income tax
By December 31
Employee tax certificate
TDS Certificate (Withholding Certificate)
November 30
Annual return
Annual Income Tax Return
Late payment penalties
Late TDS: 2% monthly; WPPF non-compliance: BDT 25,000 fine + interest
Who collects what
National Board of Revenue (NBR)
Income tax and TDS
Department of Labour (DoL)
Labour law enforcement
Bangladesh Garment Manufacturers and Exporters Association (BGMEA)
Sector-specific compliance (garments)
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave / Earned Leave
10 days casual + 14 days sick + earned leave (1 day per 18 days worked)
Public holidays
~11 public holidays
Sick leave
Sick Leave (Casual)
Full pay 14 days/year from employer
Maternity leave
16 weeks (8 before + 8 after)
Full pay from employer
The contracts you can use, and what ending an employment relationship costs.
Permanent
Permanent Contract
Fixed term
Fixed-Term Contract
Independent contractor
Service Contract
Collective agreements
Collective Bargaining Agreement (CBA via Registered Trade Union)
Ending employment
Gratuity
How it is calculated
30 days pay per year (after 5 years continuous service)
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
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.
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.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
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$49
per contractor per month
1 run
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USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.