The Employer of Record in Bangladesh
PayrollBangladesh enables you to engage an international workforce fast and legally without the need to establish a local legal company. In this article, you know the employer of record.
Keypoints:
1. A third-party corporation acts as a client's legal employer in the Employer of Record (EOR) system.
2. A Global Employer of Record is in charge of payroll, as well as all mandatory deductions and payments, as well as other employer compliance tasks.
3. Employer of Record services are typically a more cost-effective and compliant alternative for expanding abroad than forming a separate business or subsidiary.
Required Education For A Successful Employer of Record
Bangladesh is a South Asian republic in the north-eastern Indian subcontinent, in the delta of the Padma and Jamuna rivers. Bangladesh, a riverine country with a primarily Muslim population, is one of the world's most densely inhabited countries.
The area once formed, along with what is now the Indian state of West Bengal, as the eastern portion of the historical region of Bengal. When India was partitioned in 1947, it became the Pakistani province of East Bengal, one of Pakistan's five provinces separated by 1,800 kilometers of Indian land. Bangladesh became an independent country in 1971, with Dhaka as its capital.
Highlights
Country Introduction
Capital – Dhaka
Currency – Bangladeshi Taka (BDT)
Population – 163 Million
GDP – $302.6 Billion
Language – Bengali
Major Religions – Islam / Hinduism
With a length of 125 kilometers, Bangladesh's Cox Bazaar is the world's longest sea beach. The Bay of Bengal, which is located in Bangladesh, is the world's largest bay. Bangladesh is home to the world's largest mangrove forest.
The Sundarbans mangrove forest, a UNESCO World Heritage Site with a total size of 10,000 km2, is located on the Bay of Bengal's Ganges, Brahmaputra, and Meghna river deltas.
Textiles account for nearly all of Bangladesh's exports (c.95 percent) (knitwear and leather).
Textiles account for nearly $37 billion of the country's total exports of $39.2 billion, despite the fact that farming employs 45 percent of the population.
Bangladesh's Employer of Record Laws and Procedures
1.Employment Contract
It is a legal necessity in Bangladesh to have a written employment contract in Bengali. The contract must include the details of the employee's compensation and benefits, as well as any prerequisites for termination. Salary information must be reported in Bangladeshi Taka (BDT), not in a foreign currency.
2.Period of Probation
A maximum of 6 months may be granted.
3.Termination
The standard termination notice is 30 or 60 days of paid notice. The employer can make a payment in lieu of notice.
4.Overtime
All employees are entitled to work overtime under Section 108 of the Labour Act. Overtime is paid at a rate of two times the basic salary. An employee is only permitted to work a total of 60 hours per week. An employee is not permitted to work more than 56 hours per week on a yearly basis.
5.Annual Vacation
After 12 months of service, every employee is entitled to yearly leave. For every 18 working days, one day of annual leave is taken. If an employee does not use their vacation time, it can be carried over to the following year. Employees have the option of cashing out their annual leave at full salary.
6. Sick time
Employees are entitled to 14 days of paid sick/medical leave and must provide verification in the form of a medical certificate. Sick leave that hasn't been used can't be carried over to the next year.
7. Leave for Maternity
Female employees who have worked for at least 6 months are entitled to 8 weeks of paid maternity leave before and after the birth of their child. Unpaid leave is available to female employees who have worked for less than six months. Women are not allowed to work for 8 weeks after giving birth in any instances. Paternity leave is not available.
Note: The standard VAT rate in Bangladesh is 15%.
Income Tax Table
Existing Tax Step
Existing Tax rate
Up to Tk. 3 Lac.
0
On next Tk. 1 Lac.
5%
On next Tk. 3 Lac
10%
The next Tk. 4 lac
15%
The next Tk. 5 lac
20%
The rest of the money
25%
Non-residents are subject to a 30 percent flat tax.
Tax rates may change from year to year.
Contributions from both the employer and the employee
There are no mandated social security or pension contributions from either the employer or the employee.
Public Holidays
Employees in Bangladesh are entitled to 11 public/festival holidays with full pay. If an employee is compelled to work on a national holiday, they will be given two full paid days off and a replacement holiday.
New Year’s Day
Language Martyrs’ Day
Birthday of the father of the Nation, Bangabandhu Sheikh Mujibur Rahman
Independence Day
Bengali New Year
May Day
Buddha Purnima
Jumatul Bidah
Eid-ul-Fitr
National Mourning Day
Shuba Janmashtami
Eid-ul-Adha
Durga Puja
Ashura
Eid-e-Miladun-Nabi
Victory Day
Christmas Day
Other Things Of a Employer of Record
Payout for severance
Employees who have worked for at least 12 months are entitled to one month's paid notice or payment in lieu of notice, as well as one month's severance compensation for each year they have worked.
Bonus for Festival
After completing a year of continuous service, employees are entitled for two festival bonuses. The total value of any bonus should not exceed the base wage.
Permits for Work and Residency (Expatriates)
The Bangladeshi embassy in their country should have the following documents.
a filled-out visa application
In Bangladesh, a letter of appointment from the employer
An original passport with a six-month validity period.
A passport-sized photograph
Payment of the visa fee to the appropriate embassy, with proof of payment.
A work visa takes 3 to 4 weeks to process.
Benefit Of Employers of RecordEmployers of Record provide a corporation with a variety of advantages. Here are a few examples:
The largest advantage of EOR is doing business abroad.
Employer of record has a lower cost, complexity, and compliance risk.
There's no need to form a local corporation.
Observance of Immigration Rules
The Payroll Process in the Host Country
Wrap Up
Choosing an EOR or PEO for your firm comes down to whether service is more important to you. Get in touch with our Global Employer Of Record EOR experts if you're unsure which option is right for you. You can enlist our help in determining your company's goals and objectives, as well as which solution is best suited to them. Please contact us if you'd like to learn more about our Bangladesh employer of record solution.
https://www.payrollbangladesh.com/blog/eor/the-ultimate-glossary-of-terms-about-employer-of-record-2/
