Employee benefits in Bangladesh are well defined supported by the legislation. How an employer treats its employees and employee retention rate has a direct effect on its development, profits, and long-term viability. Entities in Bangladesh's growing industries, such as textiles, IT, banking, manufacturing, and NGOs, are starting to see that employee perks are not simply an expense, but a smart investment in the long term. Employers may follow Bangladesh's labor laws, keep talented workers in a competitive employment market, and develop a good reputation as a responsible employer by offering them suitable benefits as per the laws of Bangladesh and as per local norms. Bangladesh Consultant is an expert in making sure that HR, payroll, and employee benefits are all in line with the law in Bangladesh. We make sure that your business, whether it's a SMR, a large corporation, or a non-profit, stays within the law while also making enticing employee benefit packages while keeping the benefit of the employer in mind.
Updated on 25th Aug 2025
Beyond conventional ideas of a unilateral employer-employee relation, the connection between business owners and their employees has developed in the changing terrain of the modern workplace. Businesses, at an increasing rate, are beginning to understand how crucial it is to have a mutual beneficial partnership that puts employees’ growth and well-being above all whilst also focusing on the overall growth of the company. Indeed, this symbiotic relationship between the company and their employees has brought forth myriads of advantages for the employees including professional advancement, balanced work-life, medical and life insurances and even financial stability after retirement. In terms of financial stability of the employee, provident fund plays a vital role. It provides an umbrella of protection that lasts beyond their active employment.
Employee benefits are the benefits that companies provide to their workers that are more than just pay. They can be primarily segmented into two:
In Bangladesh, employees commonly get bonuses for festivals (Eids for Muslims, Puja for Hindus, Christmas for Christians, Bengali new year bonus etc.), paid time off, maternity leave, gratuity, provident funds, health insurance, and overtime compensation. Some businesses go above and beyond by giving their employees housing allowances, transportation, meal subsidies, performance and incentive bonuses for good work.
For example: In the RMG sector, factory workers get extra pay for working on holidays and overtime. IT employee benefits Bangladesh, on the other hand, often offer extra perks like health insurance, flexible hours, and bonuses based on how well the employees do their job.
Benefits for employees are quite important for both following the law and keeping employees happy.
The Bangladesh Labour Act 2006 and the Bangladesh Labour Rules 2015 set the rules for required employee benefits. Every employer must do the following:
Pay and Overtime:
Employees must be paid the minimum wage set by the government. Overtime/working on weekends is to be paid at twice the normal rate.
Leave and Encashment:
· For every 18 days of work, employees get one day of annual leave.
· Casual Leave: 10 days a year.
· Sick Leave: Employees get 14 days off with full pay.
Festival Bonus:
Employees get two festival bonuses a year, usually during Eid. Each bonus is usually equal to one month’s pay.
Provident Fund: Employers can set up provident funds that both the employer and the employee have to make equal contribution. Provident fund is mandatory only when one-third of the employees puts in a written requisition to have a provident fund. Both employers and employees generally contribute 7-10% of the base salary.
Statutory compensation or gratuity:
· Employees are entitled to gratuity funds when they leave or are terminated (other than for misconduct) after a specified number of years of service.
· Usually, this is based on 30 days’ worth of basic pay for each year of service.
· If the employers do not have a gratuity scheme in place they have to pay statutory compensation to the employees which is generally equivalent to gratuity.
Maternity Leave Benefits:
· Female employees can take 8 weeks of paid maternity leave before and after giving birth (for a total of 16 weeks).
· Employers can’t fire or treat pregnant workers unfairly.
Health and Safety at Work:
Employers must make sure that the workplace is safe. Employers in several fields (including clothing and industries) must have medical facilities on-site. For example, in the RMG (Ready-Made Garments) industry, employers are required by law to pay overtime and holiday bonuses. Many manufacturers also establish up health clinics on their premises.
Workers’ Profit Participation Fund (WPPF):
Workers get an equal share which totals to 5% of the annual net profit of the employer. This is distributed
annually.
Many organizations give non-statutory benefits to retain employees, even though they don’t have to. Some of these are:
• Health Insurance: This is group medical coverage for employees and sometimes their dependents.
• Performance Bonuses: These are based on the performance of an individual or the whole entity. This is generally not provided if the company has setup Workers’ Profit Participation Fund
• Meal and Transportation Allowances: These are common in banks and companies.
• Retirement Pension Plans: Generally provided by government entities.
• Flexible Work Hours: These are common especially in the IT and business industries.
• Professional Development and Training: Programs to improve skills.
• Housing or Accommodation Allowance: This is sometimes given in remote industrial areas.
👉 For example, a lot of international banks in Dhaka offer not only the required festival bonuses, but also private health insurance, lunch allowance, and staff loans with lower interest rates.
The law in Bangladesh that governs employee benefits and the ones that employers must observe are:
Managing employee benefits is quite similar to making sure payroll and HR are in order.
👉 For example, a SME in Chittagong hired Bangladesh Consultant to handle payroll, which made sure that festival bonuses and provident fund contributions were calculated correctly. This cut down on staff disagreements by 80%.
Employers should carefully plan their benefits packages:
We offer full HR, payroll, and employee benefits compliance services at Bangladesh Consultant. We have experienced lawyers, accountants and HR professionals on board who can help to support you with many dimensions about HR benefits in Bangladesh including but not limited to:
In Bangladesh, employee benefits aren’t only about following the law; they’re also about making the workplace a safe and appreciated environment for workers. Employers may lower turnover, attract competent workers, and improve their reputation by delivering the correct mix of mandatory and optional perks.
Bangladesh Consultant offers skilled payroll, HR, and employee benefits compliance services in Bangladesh to help your company stay ahead.
📞 Get in touch with us today for a free consultation on how to set up your employee benefits package in Bangladesh.
Annual leave, sick leave, bonuses for holidays, maternity benefits, overtime pay, gratuity, and a provident funds (if there is one).
By law workers get two holiday bonuses a year, generally around Eids or festivals related to the religion.
10 days of casual leave, 14 days of sick leave, and 1 day of leave for every 18 days worked yearly.
Women who work for the company can take 16 weeks of paid maternity leave, 8 weeks before and 8 weeks after giving birth.
Not required by law, however many businesses offer private health insurance as a benefit.
Not required by law, however, it is very common to setup a provident fund by the employer.
Usually, 30 days' worth of basic pay for each year of service. However for employees having 10 year+ service in the company its 45 day’s basic pay for each completed years.
SMEs still have to give their employees all the legal perks, like paid time off, bonuses, and overtime.
Yes, you have to pay overtime at twice the normal rate.
Yes, flexible hours aren't required, but they're becoming more common in the business worlds especially as in IT employee benefits Bangladesh.
Employers might be fined, sued, or have workers go on strike.
Statutory means that the law requires it, while non-statutory means that employers can choose to offer it and is generally the market practice.
Payroll services makes sure that overtime, bonuses, and leave encashment are all calculated correctly and that the employees are paid on time.
Yes, NGOs have to follow the Labour Acts 2006 and the rules that donors often set.
No, these are not required by law, but it is a common market practice to offer lunches in MNCs, Banks, or other corporate offices.
Two times a year, usually around Eid for Muslims or based on the religions of the employees.
People on probation are entitled to basic benefits set by law.
No, pensions are not required; provident funds are more frequent. Pensions are generally provided in government jobs.
The government sets the minimum wage, which is different for each industry.
Yes, but advantages are usually split up.
MNCs generally offer health insurance, retirement plans, and other benefits that are standard around the world.
According to the legislation, employees who are fired are entitled to gratuity or statutory compensation paid in lieu of gratuity.
Outsourcing ensures that rules are followed correctly, cuts down on disagreements, and saves time and cost. Contact us for expert support with the employee benefits, HR, payroll managements and more.
EPZs have slightly different labor rules, although many of the same advantages apply.
Workers can take their claims to Labour Courts, which can penalize employers. The First Labour Court is known as the Labour Appellate Tribunal.
