Employer of Record (EOR) in Bangladesh: Complete 2026 Guide
Guide to using an EOR in Bangladesh — costs, compliance, top providers, and comparison with setting up a local entity.
Bangladesh is one of the world's fastest-growing economies, with GDP of approximately $475 billion and 4.9-5.1% growth forecast for FY2026. Beyond its dominant garments sector, Bangladesh has a rapidly expanding ICT industry, a large English-speaking workforce, and some of the most competitive labor costs in Asia — making it increasingly attractive for outsourcing and remote hiring.
Bangladesh's labor framework includes sector-specific minimum wages, mandatory provident fund contributions, a Workers Profit Participation Fund for larger companies, and contracts that must be in Bengali. An Employer of Record (EOR) handles this complexity.
Why Use an EOR in Bangladesh?
Sector-specific minimum wages. Bangladesh has no single national minimum wage — rates are set by the Minimum Wage Board for each sector (RMG, tannery, IT, etc.). An EOR ensures the correct rate applies.
Entity setup complexity. Incorporating through BIDA takes approximately 35 days and involves multiple registrations. Employment contracts must be in Bengali.
Provident fund obligations. Employers must match employee provident fund contributions at 7-8% of basic salary. Companies with 100+ workers must also contribute 5% of net profits to the Workers Profit Participation Fund (WPPF).
High overtime premiums. Overtime is paid at 200% (double rate), and holiday work at 300% (triple rate). Overtime is capped at 12 hours/week.
Gratuity obligations. Employees with 5+ years of service are entitled to gratuity upon separation, fully funded by the employer.
Important
For a detailed breakdown of Bangladeshi labor laws including minimum wages, provident fund, working hours, and leave policies, see our Bangladesh Labor Law Compliance Guide.
Key Employment Regulations
| Regulation | Details |
|---|---|
| Minimum wage (RMG sector) | BDT 12,500/month (+5% annual increment) |
| Standard hours | 48 hours/week (max 60 with overtime) |
| Overtime | 200% of regular rate (300% on holidays) |
| Annual leave | 21 days |
| Maternity leave | 16 weeks |
| Sick leave | 14 days |
| Public holidays | 28 total (14 general + 14 executive order) |
| Provident fund (employer) | 7-8% of basic salary |
| WPPF | 5% of net profits (100+ workers) |
| Notice period | 1 month |
EOR Costs in Bangladesh
Most EOR providers charge $300 to $500 per employee per month. Statutory employer costs add approximately 10-15% on top of salary (provident fund + gratuity accrual).
Top EOR Providers for Bangladesh
| Provider | Owned Entity | Starting Price | Strengths |
|---|---|---|---|
| Multiplier | Yes | ~$400/mo | APAC specialist |
| Deel | Yes | $599/mo | Broad coverage |
| Remote | Yes | $599/mo | All owned entities |
| Velocity Global | Yes | Custom | Emerging market expertise |
For a full comparison, see our Best Employer of Record Companies guide.
Managing a Team in Bangladesh?
Track time, monitor productivity, and manage schedules across time zones with HiveDesk. Works with any EOR setup — $5/user/month, all features included.