Nestled in South Asia, Bangladesh is a vibrant country known for its diverse ethnic communities and rich biodiversity. It’s home to three UNESCO World Heritage Sites — the Sundarbans mangrove forests, the ruins of the Buddhist Vihara, and the Mosque City of Bagerhat.
With a young, tech-savvy workforce and competitive labor costs, this young nation is quickly becoming a hotspot for remote workers, offering businesses access to a global talent pool across various industries.
Advantages of Hiring in Bangladesh
Bangladesh boasts a significant labor pool, with 68% of the population between the ages of 15 and 64. Many are eager to work for international companies, and Bangladeshi team members have a reputation for adaptability to evolving work environments.
The country’s digital landscape is flourishing thanks to increased investment in Information and Communication Technologies (ICT) infrastructure as well as science, technology, engineering, and math (STEM) education under the ICT Policy 2009.
Universities, such as the American International University Bangladesh and Uttara University, have introduced specialized programs focused on artificial intelligence, data science, and cybersecurity — preparing graduates for a variety of in-demand roles.
With an average monthly wage of around BDT 26,000, the equivalent of USD 220-250, hiring in Bangladesh is quite cost-effective. While Bengali is the official language, English is widely used in business and higher education, simplifying communication with international employers.
Thanks to its low labor costs and dominance in IT services, Bangladesh has become the world’s second-largest supplier of online labor.
Here are a few key details about the country:
- Language: Bengali
- Currency: Bangladeshi Taka (BDT)
- Capital City: Dhaka
- Population: 163 million
- Cost of Living Rank: 192nd
A Rapidly Developing Tech and Employment Hub
The Digital Bangladesh (2008-2021) initiative has transformed the nation’s socio-economic landscape, with internet penetration growing from 3% to almost 40%. This digital progress is critical to reaching the nation’s goal of becoming an upper-middle-income country by 2031.
With over 100 million internet users and extensive digital infrastructure, Bangladesh is poised to transition to “Smart Bangladesh” by 2041.
Key initiatives include integrating advanced technologies such as AI and IoT in public services, enhancing urban management, and promoting digital entrepreneurship.
A crucial component of this transition is the National AI policy, which seeks to create a skilled workforce adept in AI technologies and ensure that Bangladesh remains competitive in the global digital economy.
Common job sectors in Bangladesh include:
- Software development (web, mobile, and enterprise applications)
- UI/UX and graphic design
- Data science and analytics
- Digital marketing and content creation
Employment Laws: Hiring Compliantly in Bangladesh
Employment Contracts
Under the Bangladesh Labour Act 2006 there are several types of available work arrangements, including apprentice, substitute, casual, probationary, temporary, permanent, and seasonal employment.
Employers need a letter of appointment and photo identification to hire workers and Bangladeshi employees are entitled to written employment agreements.
For remote teams, the most relevant types of contracts are:
- Permanent contracts: Open-ended agreements for long-term employment
- Fixed-term contracts: Used for project-based work and have a specified end date
Contracts should include:
- Job title and description
- Compensation and benefits
- Working hours
- Leave entitlements
- Notice period
- Probation period (if applicable)
Working Hours & Pay
The standard workday is eight hours a day and 48 work hours per week. Employees may not work more than two hours of overtime per day or more than 60 hours in one week. Overtime pay is twice the regular hourly rate.
As of 2024, there’s no universal minimum wage for all sectors.
Salaries are often higher than local minimums for remote work arrangements with international companies and are based on the specific role and the employee’s skills and experience.
Festival Bonuses
It’s customary and expected (but not mandatory) for employers to provide two annual bonuses during major festivals, such as Eid. Each bonus is usually equivalent to one month’s salary.
Probation Periods
Probation periods typically last from three months to six months. During probation, either party can terminate employment without notice.
Employer Taxes
While there is no comprehensive social security system in Bangladesh, employers are required to make the following contributions:
- Workers Profit Participation Fund (WPPF): Eligible companies must contribute 5% of the company’s net profit annually.
- Provident Fund: Employers must contribute to direct benefits, such as the provident fund, and compensate employees for workplace injuries.
Termination Process & Severance Pay
The termination process in Bangladesh varies depending on the type of contract and the reason for termination. The notice period for termination required from the employer is 120 days for permanent employees who are paid monthly and 60 days for all others.
Employees are entitled to severance pay of 30 days’ wages for each completed year of service. In misconduct termination cases, notice and severance pay aren’t required.
Paid Leave Laws in Bangladesh
Vacation and Holiday
Employees in Bangladesh earn one day of paid leave for every 18 days worked, although it can vary by industry. They’re entitled to paid days off for public holidays, such as Independence Day, Bengali New Year, and Eid celebrations.
Sick Leave
Employees receive 14 days of paid sick leave per year, and may be required to provide a medical certificate.
Maternity Leave
Pregnant women in Bangladesh who have worked for their employer for at least 180 days are entitled to 16 weeks of paid maternity leave, eight weeks before childbirth, and eight weeks after.
Paternity Leave
Bangladesh has no statutory provisions for paternity leave, although the government has indicated that a paternity leave policy is under consideration. Employers may also choose to voluntarily offer leave to their male employees.
Why Digital Nomads Love Bangladesh
While Bangladesh doesn’t currently offer a specific digital nomad visa, location-independent freelancers and workers can enter the country on a tourist visa or business visa, typically valid for 30 days.
Bangladesh offers an off-the-beaten-path experience with affordability, culture, and emerging opportunities.
The combination of low rents in Dhaka, vibrant tech hubs with coworking spaces in Chittagong, and widespread 4G coverage make Bangladesh an appealing destination for remote work.
Hire in Bangladesh with RemoFirst
Partnering with an Employer of Record (EOR) like RemoFirst can simplify the process of hiring remote employees in Bangladesh.
As an EOR, RemoFirst assumes the role of a legal employer for companies that don’t have a local entity in the country of employment and ensures compliance with all local labor laws. We help businesses navigate the complexities of international hiring a global team in 180+ countries, including Bangladesh.
Are you looking to tap into a growing pool of top international talent? Book a demo to see how RemoFirst’s EOR solutions can support your global hiring strategy.
